LTS revises full-year forecast down amid project losses, platform delays

LTS reported net sales of 8,572 million yen and operating profit of 473 million yen for the interim period ending June 30, 2025. However, profitability declined due to one-time losses of 321 million yen (under operating loss) and 188 million yen (under extraordinary losses) related to underperforming projects. These losses, coupled with profitability adjustments in the Platform Business, led to a revised full-year operating profit forecast of 1,180 million yen, down from the initial 1,400 million yen, and profit attributable to owners of parent revised to 650 million yen from 900 million yen.

Despite the earnings revision, LTS plans to maintain its annual dividend at 35.0 yen per share, citing the project losses as a one-time extraordinary event. The company also announced a resolution to purchase up to 240,000 treasury shares, equivalent to 500 million yen, between August 15 and December 30, 2025, to enhance shareholder return and capital efficiency.

Total assets decreased to 9,716 million yen from 11,402 million yen at year-end 2024, primarily due to a 1,479 million yen decrease in cash and deposits. Liabilities also decreased, with long-term borrowings seeing a substantial reduction of 1,488 million yen. The equity ratio improved to 46.6%, up from 39.1% at the end of 2024.