JGC Holdings Corporation (TSE: 1963), one of the world's leading engineering, procurement and construction (EPC) contractors for LNG, oil & gas, chemical and energy-transition plants, reported a decisive return to profitability for the fiscal year ended March 31, 2026, in results disclosed on May 14, 2026. Consolidated revenue fell 13.1% year-on-year to ¥745,280 million, but the Yokohama-based group swung to an operating profit of ¥35,399 million from a ¥11,474 million loss a year earlier. Ordinary profit surged 414.0% to ¥58,188 million, and net income attributable to owners of the parent came in at ¥41,842 million, reversing a small ¥398 million loss. Earnings per share recovered to ¥173.06 from −¥1.65, and return on equity reached 10.2%.
Project execution recovers after prior-year overseas losses
The prior year's operating loss reflected cost deterioration on certain overseas projects, and FY2026 marked a broad recovery in project execution and profitability across the group's core EPC portfolio. Alongside its global energy and chemical plant business, JGC operates a domestic functional-materials manufacturing arm that provides a steadier earnings base. The five-fold surge in ordinary profit to ¥58,188 million was driven not only by the operating turnaround but also by strong non-operating income, including foreign-exchange gains and interest income — a reminder that for a contractor with large foreign-currency contract balances and substantial cash holdings, the non-operating line can move materially with markets.
Balance sheet strength underpins the recovery
JGC ended the year with total assets of ¥838,793 million and net assets of ¥431,191 million, for an equity ratio of 51.2% and book value per share of ¥1,775.55 — a conservative capital structure for an industry where project risk can swing results sharply. Cash generation was equally robust: operating cash flow reached ¥79,898 million, lifting cash and equivalents to ¥400,470 million at year-end. That liquidity cushion gives the group ample capacity to absorb project working-capital swings and to invest in energy-transition opportunities such as hydrogen, ammonia and carbon-capture projects, where it is positioning for the next investment cycle.
Dividend raised to ¥52; FY2027 net income guided up 10%
Reflecting the earnings recovery, JGC set its year-end dividend at ¥52.00 per share, for a total payout of ¥12,576 million and a payout ratio of 30.1%; it plans to maintain ¥52.00 for FY2027. For the fiscal year ending March 2027, the company guides for revenue of ¥670,000 million (−10.1%) as legacy mega-projects roll off, but operating profit of ¥40,000 million (+13.0%) on improved project margins. Ordinary profit is guided at ¥46,000 million (−20.9%) — normalising after this year's outsized non-operating gains — while net income is seen rising 9.9% to ¥46,000 million, equivalent to EPS of ¥190.25. The guidance implies management expects the quality of earnings to keep improving even as the top line contracts, with profitability driven by execution discipline rather than volume.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 745,280 | 858,082 | −13.1% |
| Operating profit (¥ million) | 35,399 | −11,474 | n.m. |
| Ordinary profit (¥ million) | 58,188 | 11,320 | +414.0% |
| Net profit attrib. to owners (¥ million) | 41,842 | −398 | n.m. |
| EPS (¥) | 173.06 | −1.65 | n.m. |
| ROE | 10.2% | — | — |
| Total assets (¥ million) | 838,793 | — | — |
| Net assets (¥ million) | 431,191 | — | — |
| Equity ratio | 51.2% | — | — |
| Annual dividend (¥) | 52.00 | — | — |
| FY2027 guidance — revenue (¥ million) | 670,000 | — | −10.1% |
| FY2027 guidance — operating profit (¥ million) | 40,000 | — | +13.0% |
| FY2027 guidance — net profit (¥ million) | 46,000 | — | +9.9% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.