Ando Hazama Q1 Operating Profit Rises 22% to ¥6.48 Billion as Building Orders Triple

Ando Hazama Corporation (TSE: 1719), the general contractor created by the 2013 merger of Hazama Corporation and Ando Corporation, reported consolidated results for the first quarter of the fiscal year ending March 31, 2027 under Japanese GAAP. Revenue rose 12.4% to ¥105,044 million, operating profit climbed 22.3% to ¥6,484 million, recurring profit jumped 41.7% to ¥6,336 million, and net profit attributable to owners of the parent advanced 34.9% to ¥4,237 million. Basic earnings per share were ¥27.01, up from ¥20.03.

Building construction carries the quarter

Gross profit rose 13.3% to ¥14,598 million on a gross margin of 13.9%, while selling, general and administrative expenses grew a slower 7.0% to ¥8,113 million — the gap between the two is what drove the operating-profit gain. By segment, building construction did the heavy lifting: completed-work revenue advanced 24.6% to ¥68,032 million and segment profit surged 73.3% to ¥6,467 million. Civil engineering moved the other way, with completed-work revenue down 10.5% to ¥28,710 million and segment profit 47.7% lower at ¥1,910 million. The group-business segment contributed ¥6,788 million of revenue (+27.2%) and ¥286 million of profit.

Orders and backlog surge

Order intake was the quarter's standout. On a parent-company basis, construction orders nearly tripled to ¥133,935 million from ¥46,456 million a year earlier. Building orders leapt 203.0% to ¥110,310 million, overwhelmingly private-sector work at ¥106,770 million, while civil-engineering orders rose 135.1% to ¥23,625 million on a much stronger run of public-sector awards. Construction backlog closed the quarter at ¥724,023 million, up 40.4% year on year and 5.2% above the March year-end level, leaving the company with an unusually deep revenue pipeline heading into the rest of the year.

Below the operating line and on the balance sheet

Recurring profit grew far faster than operating profit because non-operating costs shrank sharply: net non-operating expenses narrowed to ¥149 million from ¥830 million a year earlier, as foreign-exchange losses and equity-method investment losses both receded. No extraordinary items were booked this quarter, against ¥418 million of extraordinary gains a year ago. Total assets edged up to ¥411,976 million while liabilities fell about ¥7.1 billion to ¥195,133 million; net assets rose to ¥216,843 million, lifting the equity ratio 1.8 points from the March year-end to 52.4%. Comprehensive income more than doubled to ¥13,868 million (+159.3%), reflecting ¥9,263 million of unrealised gains on investment securities.

Guidance and dividend held

Management left the full-year forecast unchanged from its May 14 release: revenue of ¥490,000 million (+11.5%), operating profit of ¥34,000 million (+1.1%), recurring profit of ¥33,600 million (+1.0%) and net profit of ¥22,200 million (−25.4%), for EPS of ¥141.51. The projected profit decline reflects the absence of the large one-off gain booked in the prior year rather than any deterioration in the underlying business; the first quarter already covers 21.4% of the revenue target and 19.1% of the operating-profit target. The dividend plan is also unchanged, at ¥42.00 interim plus ¥42.00 year-end for an annual ¥84.00, against ¥80.00 paid for FY3/2026.

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.