1799.T

• Core Financial Results

  • Total consolidated revenue for the interim period was 26.599 billion yen, a 1.599 billion yen (6.4%) increase year-over-year
  • Operating profit hit 3.412 billion yen, a 0.812 billion yen (31.2%) increase year-over-year
  • Ordinary profit reached 3.811 billion yen, a 1.011 billion yen (36.1%) increase year-over-year
  • Net interim profit was 2.653 billion yen, a 0.653 billion yen (32.7%) increase year-over-year, achieving year-over-year growth in both revenue and all profit metrics
  • Operating cash flow was 7.214 billion yen, driven by higher pre-tax profit and reduced trade receivables; ending cash and cash equivalents stood at 18.615 billion yen
  • Total assets were 81.219 billion yen, equity ratio increased 1.9pp to 87.3%, indicating a strong balance sheet

• Technology Development and Innovation

  • Patented the in-house developed D-flip construction method for bridge pier work in rivers, which delivers significant construction period shortening and cost reduction; registered with Japan's Ministry of Land, Infrastructure, Transport and Tourism NETIS new technology system, and is working to expand business with this method
  • Conducted demonstration tests for disaster-time railway infrastructure inspection using VTOL drone automatic navigation, to improve disaster response speed and inspector safety
  • Completed a successful trial of heavy cargo transport via autonomous drone on the Rikuu East Line, confirming the method's effectiveness for locations where access routes are difficult to secure; will continue testing larger-capacity drones

• ESG and Stakeholder Engagement

  • Human capital management: Aligns human resources strategy with corporate strategy, invests in talent development and inclusive workplace improvement to boost employee engagement and drive sustainable growth
  • Community engagement: Co-hosted a railway facility experience event for visually impaired customers, working to improve safe railway access for all users
  • Health management: Launched multiple initiatives including health education content, paid support for Japan Health Master Certification, and dental exam subsidies; recognized as an Excellent Health Management Corporation 2025 (Large Enterprise Category)
  • Environmental management: Has a declared target of 30% CO2 emission reduction by 2030 (vs 2020 baseline) and carbon neutrality by 2050; already achieved 100% adoption of biodegradable hydraulic fluid for all 123 large track maintenance machines, and is advancing LED lighting conversion, renewable energy adoption, and ZEB/ZEH-M普及
  • IR and outreach: Participated in the Niigata Prefecture Listed Company IR Forum and a student-management roundtable, prioritizing transparent disclosure and dialogue with stakeholders
  • Safety management: Designated July 4 as 'Safety Day', conducts company-wide safety training to prevent major accidents

• 2025 First Half Operational Milestones

  • Introduced a restricted stock compensation plan to improve employee management ownership and support post-retirement asset building
  • Completed technical cooperation for the India High-Speed Rail project, providing on-site track technology guidance contracted by the Japan Railway Technical Cooperation Association
  • Exhibited the D-flip method at the EE Tohoku '25 construction technology exhibition to promote industry adoption

• Management revised the full-year 2026 March fiscal year earnings guidance based on strong interim results and updated performance outlooks, with no specific numerical figures provided in the transcript
• End-of-fiscal-year 2025 dividend is planned at 130 yen per share
• Under the mid-term management plan 'Transformation 2028' and capital cost-conscious management strategy, Daiichi Kensetsu Kogyo targets a payout ratio of at least 50%, total return ratio of at least 100%, and plans to acquire at least 5 billion yen of treasury stock over 5 years to strengthen shareholder returns
• Management reaffirmed its commitment to continuing stable dividends, with special dividends for milestone events based on performance and future business outlook

1. Construction Segment: Total revenue of 26.044 billion yen, a 1.415 billion yen (5.7%) increase year-over-year. Within Construction:

• Civil engineering works: 17.944 billion yen, a 6.9% increase year-over-year, contributing 67.5% of total company revenue
• Architectural works: 8.1 billion yen, a 3.3% increase year-over-year, contributing 30.5% of total company revenue

1. Real Estate Segment: Total revenue of 0.555 billion yen, a 0.017 billion yen (3.3%) increase year-over-year, contributing 2.0% of total company revenue By client type, railway-related construction (civil, architectural, track) accounts for 86.5% of total revenue, private construction accounts for 7.8%, and government construction accounts for 5.7%.

No explicit discussion of business risks, operational failures, or material downside risks was included in the available transcript.

No question and answer section was included in the available earnings call transcript.