ASANUMA CORPORATION Q1 FY2026 earnings call

This fiscal year is the second year of the company's medium-term three-year plan, which focuses on 6 core strategic themes. The call covered progress on the two highest priority themes:

Human Resource Acquisition, Retention, and Development

• Increased starting salary to 300 thousand yen, and has implemented annual base wage increases of over 3% for four consecutive years to improve compensation • Signed a naming rights partnership with Saga University to boost brand recognition and contribute to academic research infrastructure • Introduced a student loan repayment assistance program to support new graduates and improve the company's attractiveness to early-career talent • Launched a web-based turnover prevention tool for young employees that lets users log daily mental health status via weather-themed stickers, enabling early intervention to reduce attrition • Continued promotion of the "4 weeks 8 closed days" work schedule for construction sites to improve work-life balance • Expanded training programs: extended new hire training to focus on skill building and certification, and added new career development training for existing employees

Governance, Compliance, and Risk Management Strengthening

• Expanded communication with shareholders and investors by hosting investor briefings in multiple formats, including in-person events and live streaming, to increase transparency • Complied with early disclosure requests for securities reports by publishing the document three business days ahead of the annual general meeting of shareholders • Approved the grant of restricted stock compensation to directors and approximately 1,200 employees in FY2025, marking the third consecutive year of the employee stock compensation program • Conducted regular e-learning compliance training with a specific focus on IT security in response to growing digital risks • Strengthened the company's Business Continuity Plan (BCP) in response to the increasing frequency and severity of natural disasters

Shareholder Returns

• The company plans to increase dividends for the 9th consecutive fiscal year • Maintains the policy of a payout ratio of 70% or higher, carried over from the previous medium-term plan • For FY2025, planned total annual dividend is 41.5 yen per share: 16 yen interim dividend and 25.5 yen year-end dividend

All KPIs for the 6 medium-term plan themes are progressing on track, per 2024 full-year results.

On a consolidated basis, Asanuma Corporation reported total orders of 56.122 billion yen, up 6.4% year-over-year, reaching 37% of the full-year plan. Consolidated net sales were 42.707 billion yen, up 32.7% year-over-year, reaching 25.1% of the full-year plan. Gross profit was 4.005 billion yen, with a gross profit margin of 9.4%, up 38.5% year-over-year, reaching 21.9% of the full-year plan. Selling, general and administrative expenses were 2.893 billion yen, up 23.1% year-over-year due to higher personnel and reserve costs. Operating profit was 1.112 billion yen (2.6% margin), and net profit attributable to parent shareholders was 0.712 billion yen, both increasing year-over-year for a first quarter of higher revenue and profit. On a standalone basis, total combined orders for the Construction and Civil Engineering segments were 55.162 billion yen, up 7.6% year-over-year. Construction segment orders totaled 496.8 billion yen: Accommodation facilities (including IR projects) accounted for 41% of orders at 20.359 billion yen, residential properties (condominiums) 17% at 8.602 billion yen, education/research facilities 14% at 6.856 billion yen. For Construction segment renovation sub-orders, factories account for 46%, education/research facilities 15%, and residential properties 13%. Civil Engineering segment orders totaled 5.025 billion yen: Land development works accounted for 57% of orders at 2.863 billion yen, erosion and flood control 19% at 0.961 billion yen, and water and sewerage 7% at 0.351 billion yen. By public/private split, public sector orders were 7.97 billion yen, up 347% year-over-year, driven by a 314% year-over-year increase in public sector Construction orders to 6.614 billion yen and recovering overall Civil Engineering orders.

The full-year plan guidance was not revised in this first quarter earnings call. First quarter progress is in line with plan: order achievement reached 37% of the full-year target, sales reached 25.1%, and gross profit reached 21.9%. Management confirmed they will continue executing medium-term plan initiatives as scheduled.

Management noted the increasing frequency and probability of natural disasters, and has responded by strengthening the company's Business Continuity Plan to mitigate operational disruption risk. Growing IT security risks are also acknowledged, and addressed with regular compliance training for employees. No current material operational failures or unmitigated critical risks were discussed.

No substantive Question and Answer section is included in the provided transcript, only related metadata for other earnings calls is appended after the prepared remarks from Asanuma's Q1 presentation.