Sumitomo Densetsu upgrades forecasts, suspends dividend amid tender offer

Sumitomo Densetsu Co., Ltd. has reported a substantial upward revision to its consolidated earnings forecasts for the fiscal year ending March 31, 2026. For the second quarter (six months ended September 30, 2025), net sales reached JPY99,011m, exceeding the previous forecast by 3.1%. Operating profit surged by 38.1% to JPY8,562m, and ordinary profit by 39.8% to JPY9,226m, reflecting strong progress in large-scale electrical construction projects and better-than-expected profit improvements.

Consequently, the full-year consolidated forecast for March 31, 2026, has been updated, with net sales now projected at JPY218,000m (up 3.8%), operating profit at JPY21,000m (up 16.7%), and ordinary profit at JPY22,300m (up 17.4%). This revision is driven by anticipated continued progress in large-scale projects and sustained profit improvements in the second half.

However, Sumitomo Densetsu also announced a revision to its dividend forecast for the fiscal year ending March 31, 2026. Subject to a successful tender offer by Daiwa House Industry Co., Ltd., Sumitomo Densetsu will not pay a year-end dividend for the fiscal year. The interim dividend for the period ended September 30, 2025, will be JPY78.00 per share as previously announced.