Toa Road Industrial sees Q2 revenue dip, operating profit surge

Toa Road Industrial's Q2 FY2026 consolidated net sales reached JPY 51,459 million, a 4.5% decrease compared to the previous year, falling slightly below plan. This was attributed to delays in construction projects and lower-than-expected asphalt procurement costs. Despite this, operating profit saw a substantial rise of 129.3% to JPY 406 million, though still below the company's projections. Net income attributable to shareholders declined by JPY 133 million to JPY 469 million year-on-year.

For the full fiscal year ending March 2026, the company maintains its forecast, expecting net sales of JPY 127,000 million and operating profit of JPY 6,500 million, representing a 0.3% and 29.6% increase, respectively, from the previous year. Toa Road Industrial plans to improve profitability through enhanced sales efforts, efficient project management, and passing on increased costs to sales prices in its manufacturing, sales, and environmental businesses.

The company is committed to its medium-term management plan, which includes initiatives to strengthen its financial base, expand business areas, promote technological development and DX, enhance engagement, and bolster governance. Shareholder returns are a priority, with a dividend payout ratio target of 100% and a DOE of 8%.