Construction margins normalise; steel and ports in the red
Oriental Shiraishi Corporation (TSE: 1786) reported consolidated results under Japanese GAAP for the first half of FY3/2027, April 1 to September 30, 2026, on November 9, 2026. Construction, its core segment, held sales almost flat at ¥29,691 million, but segment profit fell 43.9% to ¥2,008 million because profits from design changes had been concentrated in the prior-year half; the company expects a recovery in the second half. Steel Structures sales fell 54.7% to ¥2,113 million and swung to a ¥138 million loss after a high-margin project last year, and Ports sales fell 20.2% to ¥1,199 million with a wider ¥182 million loss after a large project was completed.
Gross profit fell 28.2% to ¥5,321 million while selling and administrative costs were flat. Construction orders fell 55.8% to ¥17,097 million as the company chose work in light of its existing workload, while steel structures orders rose 70.5% to ¥3,266 million; the order backlog stood at ¥105,334 million, down 2.0%. Net profit attributable to owners fell 56.4% to ¥1,171 million, or ¥9.10 per share, and the equity ratio rose to 65.5%.
Forecast kept; dividend raised to ¥16
Oriental Shiraishi kept its FY3/2027 forecast of net sales of ¥75,000 million (+8.9%), operating profit of ¥4,000 million (-25.0%), ordinary profit of ¥4,500 million (-18.8%) and net profit attributable to owners of ¥2,750 million (-18.7%). It raised its interim dividend to ¥8 and plans a year-end ¥8, a total of ¥16 against ¥14.50 for FY3/2026. A Taiwanese precast-materials company joined the consolidation during the half.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Orders received (¥ million) | 21,770 | 42,386 | -48.6% |
| Revenue (¥ million) | 33,121 | 36,121 | -8.3% |
| Gross profit (¥ million) | 5,321 | 7,409 | -28.2% |
| Operating profit (¥ million) | 1,732 | 3,825 | -54.7% |
| Ordinary profit (¥ million) | 1,858 | 3,842 | -51.6% |
| Net profit attrib. to owners of parent (¥ million) | 1,171 | 2,689 | -56.4% |
| EPS (¥) | 9.10 | 20.74 | -56.1% |
| Order backlog (¥ million) | 105,334 | 107,497 | -2.0% |
| Construction — revenue (¥ million) | 29,691 | 29,826 | -0.5% |
| Construction — segment profit (¥ million) | 2,008 | 3,581 | -43.9% |
| Steel Structures — revenue (¥ million) | 2,113 | 4,661 | -54.7% |
| Steel Structures — segment profit (¥ million) | -138 | 268 | profit to loss |
| Ports — revenue (¥ million) | 1,199 | 1,502 | -20.2% |
| Ports — segment profit (¥ million) | -182 | -44 | loss widened |
| Total assets (¥ million) | 81,311 | 82,772 | -1.8% |
| Net assets (¥ million) | 53,331 | 53,191 | +0.3% |
| Equity ratio | 65.5% | 64.2% | +1.3 pt |
| FY3/2027 guidance — revenue (¥ million) | 75,000 | — | +8.9% |
| FY3/2027 guidance — operating profit (¥ million) | 4,000 | — | -25.0% |
| FY3/2027 guidance — ordinary profit (¥ million) | 4,500 | — | -18.8% |
| FY3/2027 guidance — net profit (¥ million) | 2,750 | — | -18.7% |
| Annual dividend per share (¥) | 16.00 | 14.50 | +10.3% |
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.