Obayashi corporation raises full-year profit forecasts on strong project performance, asset sales

Obayashi Corporation's consolidated financial results forecast for FY2026 sees net sales now projected at JPY 2,570,000 m (up JPY 10,000 m), operating income at JPY 165,000 m (up JPY 43,000 m), ordinary income at JPY 172,000 m (up JPY 46,000 m), and profit attributable to owners of parent at JPY 149,000 m (up JPY 49,000 m). This revision is primarily attributed to favorable progress in domestic and overseas construction projects, coupled with improved profitability in overseas subsidiaries.

Non-consolidated forecasts also show significant increases in profit figures, with operating income expected to rise by JPY 37,000 m to JPY 111,000 m, ordinary income by JPY 32,000 m to JPY 154,000 m, and profit for the period by JPY 34,000 m to JPY 146,000 m. These improvements stem from higher gross profit on completed domestic construction projects due to change orders and cost reductions, along with extraordinary income from faster-than-anticipated sales of cross-shareholdings. The company also announced a slight increase in its annual dividend forecast to JPY 82.00 per share.

The company's policy of reducing strategic cross-shareholdings has progressed, with the total value of such sales, including agreements, reaching JPY 2,697 m as of September 30, 2025. This strategy, alongside human resource, DX, and technology investments, is aimed at enhancing corporate value and capital efficiency, with proceeds channeled into growth investments and shareholder returns.