JGC Holdings Corporation (JGCCF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Ntaguchi from the Finance Unit. I would like to provide an outline of financial results. Please turn to slide 4. we have highlighted three key points for the first half of the fiscal year. First, in total engineering business, large-scale projects both in Japan and overseas have been progressing steadily. Although we are faced with challenges with one overseas project, our strengthening EPC and execution framework has helped us to lower overall risk and profitability is gradually improving. Functional materials manufacturing business has maintained stable performance. Reflecting these factors, we have revised our full year earnings forecast upward. Please move on to slide 5, which shows the consolidated income statement. Net sales for the first half of FY2025 were 381.2 billion yen down year-on-year basis. However, gross profit was up 2.9 billion yen to 30.2 billion yen. Profit ratio was 7.9%, up 1.2 points. Operating profit was up 3.3 billion yen to 15.7 billion yen, and ordinary profit was up 1.7 billion yen to 21.1 billion yen. Profit attributable to owners of the parent was down 1.1 billion yen to 11.6 billion yen, mainly due to higher tax expenses. Please turn to slide 6 for segment information. Total engineering business net sales down 27.8 billion yen year-on-year to 350.4 billion yen. As both domestic and overseas large-scale projects were nearing completion, the delay in receiving new orders resulted in lower sales. Segmental profit, however, increased by 3 billion yen to 14.8 billion yen, reflecting the positive effects of strengthened project execution, with the profit margin improving by 1.1 points to 4.2%. Functional materials manufacturing business posted both higher sales and profits compared with the previous year. Sales of catalysts increased...