Toyo Engineering reports Q2 loss on project challenges, maintains full-year outlook

Toyo Engineering Corporation reported a net loss of 3.0 billion yen and an operating loss of 4.2 billion yen for the second quarter of fiscal year 2025 (ending September 30, 2025). This was primarily due to margin deterioration in a Brazil gas power project and two domestic biomass projects. Despite these setbacks, the company’s net sales reached 94.0 billion yen for the first half of FY2025.

New orders, including equity method affiliates, were strong at 364.1 billion yen, representing 91% of the full-year target of 400.0 billion yen. The company maintains its full-year earnings forecast, expecting a recovery in the second half through existing project execution and cost reductions. The full-year outlook for net profit remains at 5.0 billion yen, with a planned dividend of 25 yen per share.

Key initiatives to achieve this include rigorous quality and cost control on EPC projects, group-wide expense reviews, and reliable execution of FPSO projects. The total backlog of contracts, including equity method affiliates, stands at 613.9 billion yen, securing anticipated sales and profits for the second half of FY2025 and into the next fiscal year. Regional net sales for Q2 were led by Southeast Asia, Korea (30.6 billion yen) and Japan (17.9 billion yen), while Petrochemicals (30.2 billion yen) and Oil & Gas (24.8 billion yen) dominated product categories.