San Machinery Co., Ltd. <1961> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 24). The revenue increased by 18.4% year-on-year to 105.95 billion yen, operating profit increased by 362.5% to 5.296 billion yen, ordinary profit increased by 253.5% to 6.639 billion yen, and net income attributable to parent company shareholders increased by 215.8% to 4.45 billion yen.

The amount of orders received in the construction equipment business increased by 36.1% year-on-year to 129.704 billion yen, revenue increased by 18.9% to 88.004 billion yen, and segment profit increased by 368.0% to 5.784 billion yen. The increase in orders received was due to large-scale construction projects for building air conditioning and sanitation, industrial air conditioning, and electrical facilities. The increase in revenue and segment profit was attributed to the progress of large-scale projects carried over from the previous period and improvements in profit margins.

The amount of orders received in the machinery system business decreased by 16.5% year-on-year to 4.199 billion yen, revenue increased by 9.0% to 5.056 billion yen, and segment loss was 0.449 billion yen (compared to a loss of 0.518 billion yen in the same period last year). The decrease in orders received was due to the rebound effect of receiving a large conveyor system order in the previous year. The increase in revenue was due to the progress of carry-over projects from the previous period, resulting in an improvement in segment loss.

The amount of orders received in the environmental system business decreased by 31.6% year-on-year to 16.306 billion yen, revenue increased by 23.3% to 11.778 billion yen, and segment loss was 0.104 billion yen (compared to a loss of 0.203 billion yen in the same period last year). The decrease in orders received was due to the rebound effect of receiving a large waste treatment facility order in the previous year. The increase in revenue was due to the progress of carry-over projects from the previous period, resulting in an improvement in segment loss.

The amount of orders received in the real estate business increased by 4.2% year-on-year to 1.293 billion yen, revenue increased by 4.2% to 1.293 billion yen, and segment profit increased by 4.6% to 0.499 billion yen. The increase was driven by higher tenant rental income, leading to increased revenue and profit.

Regarding the full-year forecast for the fiscal year ending March 2025, an upward revision of the consolidated performance forecast was announced on the same day. Revenue is expected to increase by 10.4% compared to the previous year (previously expected increase of 8.9%) to 245 billion yen, operating profit is expected to increase by 42.4% (previously expected increase of 32.0%) to 16.5 billion yen, ordinary profit is expected to increase by 33.3% (previously expected increase of 30.8%) to 17 billion yen, and net income attributable to parent company shareholders is expected to increase by 29.6% (previously expected increase of 31.8%) to 11.6 billion yen.

In addition, since the performance for the current period is expected to exceed the performance forecast announced on May 10, an interim dividend for the fiscal year ending March 2025 is set to be increased by 12.50 yen from the previous forecast of 42.50 yen per share to 55.00 yen per share, and the year-end dividend forecast is also increased by 12.50 yen from the previous forecast of 42.50 yen per share to 55.00 yen per share. The expected annual dividend per share for the fiscal year ending March 2025 will be increased by 25.00 yen from the previous forecast of 85.00 yen to 110.00 yen.