ASANUMA CORPORATION Q3 FY2026 earnings call

3-Year Mid-Term Plan Progress on Key Strategic Themes

• Renewal Business Strengthening
  • Asanuma promotes the GOOD CYCLE PROJECT initiative that combines environmental and human health focus with proprietary technology to deliver high-value, unique customer proposals.
  • The company has obtained patents for two new environmentally friendly technologies: Kantsuchi Blocks (which repurposes on-site generated soil) and 3D Wood-Frame Earthen Walls (which combines soil and wood). Both technologies have already been implemented at Asanuma's Nagoya branch reception room and a retail location at the Toyosu Senkyaku Banrai commercial facility.
  • Kantsuchi Blocks won the resource recycling sector award at Tsuchi EXPO 2025 OSAKA. 3D Wood-Frame Earthen Walls earned Good Design Award for a building using the technology, and an industry award from the Japan Interior Designer Association for the technology itself. Management will continue strengthening the high-value renewal business brand to grow it into a core profit pillar.
• Talent Acquisition, Retention, and Development
  • Management is focused on improving working conditions, promoting the appeal of the construction industry, and communicating Asanuma's initiatives to strengthen employer branding.
  • Asanuma is participating in the construction and relocation of the Netherlands Pavilion at Osaka-Kansai Expo, which has gained attention as a circular construction model, and is conducting active PR through ongoing media coverage. The company also sponsored a circular architecture-focused project at the Hiroshima International Architecture Festival 2025 to build brand awareness.
  • The company has developed and is rolling out the new Wellness Container concept for construction site offices, which incorporates natural materials and natural sounds to create a comfortable, warm working environment that supports the physical and mental health of on-site employees, with goals to improve productivity and reduce turnover.
  • Management will continue focusing on initiatives to develop an inclusive environment for diverse talent, reduce overtime work, and promote holiday acquisition to support talent goals.
• Governance, Compliance, and Risk Management Strengthening
  • Asanuma published the INTEGRATED REPORT 2025, which covers the company's strategy and ESG initiatives, and includes a special feature on circular architecture learnings from the Netherlands Pavilion project at Osaka-Kansai Expo to clearly communicate the company's strategic direction to all stakeholders.
  • An English version of the integrated report will be published for the first time to better serve global stakeholders.
  • The company has expanded both the quality and quantity of engagement with shareholders and investors, including in-person briefings, live webcasts, radio appearances, and participation in individual investor events to deepen understanding of the company.
• Environmental and Social Contribution
  • Asanuma achieved major progress when the company's group-wide greenhouse gas emission reduction target obtained SBT (Science Based Targets) certification, which publicly recognizes the company as holding a scientifically validated, Paris Agreement-aligned reduction target. The company also obtained third-party assurance for its FY2024 greenhouse gas emissions actual results.
  • Management will continue strengthening proposals for ZEB (Net Zero Energy Building) and ZEH (Net Zero Energy Home) projects, promoting environmentally conscious design, and advancing decarbonization across the entire supply chain.

Capital Market and Shareholder Return Updates:

• Asanuma's cumulative stock return since the start of the prior mid-term plan in April 2018 is 192%, significantly outperforming TOPIX. The current PBR is 1.90x, reflecting solid market valuation. Management will continue working to improve corporate value through higher capital efficiency and sustainable growth.

Consolidated 3rd Quarter FY2025 results: 169.791 billion yen total order value, 26.4% increase year-over-year driven by large projects in domestic construction and civil engineering. 128.158 billion yen total sales revenue, 11.2% increase year-over-year supported by steady progress on large backlogged projects. Operating profit of 7.179 billion yen, 35.0% increase year-over-year. Profit attributable to parent company shareholders of 4.867 billion yen, 38.6% increase year-over-year. Carried forward backlog of 244.03 billion yen, 19.7% increase year-over-year, equal to 16.8 months of monthly sales, consisting of high-quality projects from Asanuma's selective order intake strategy. Non-consolidated (parent-only) order value increased 30.5% year-over-year. By customer segment: Construction government orders increased 129.1% year-over-year from strategic focus; Civil engineering private sector orders increased 353% year-over-year from large project wins. By use case: Construction segment: warehouses represent 23% of total orders, with a balanced mix of additional projects including accommodation facilities, residential buildings, and offices. Civil engineering segment: large projects in power lines and flood/erosion control (dam construction) hold the top share, with a balanced mix of additional projects including land development and road construction. Singapore subsidiary Evergreen also delivered solid operational performance contributing to group profits.

• Full-year FY2025 consolidated guidance has been upwardly revised based on solid 3rd quarter progress: total order value is now forecast at 197.5 billion yen, a 30.4% increase from the initial beginning-of-year forecast. Sales revenue is forecast at 174.6 billion yen, a 2.5% upward revision from initial guidance. Operating profit is forecast 7.4% above initial guidance, ordinary profit is forecast 8.1% above initial guidance, and profit attributable to parent shareholders is forecast 4.8% above initial guidance.
• In line with the upward full-year profit revision and the company's mid-term plan shareholder return target of a 70%+ consolidated payout ratio, the full-year dividend forecast has been increased. The year-end dividend is raised by 2 yen from the initial forecast, bringing full-year annual dividend per share to 43.5 yen, which represents a 2.5 yen increase from the prior year's actual dividend. This is on track to be the 8th consecutive year of dividend increases.
• The FY2026 dividend plan remains unchanged from the plan disclosed when the current 3-year mid-term plan was announced in May 2024. After FY2025 full-year results are finalized, management will review the dividend plan alongside the FY2026 business plan and evaluate whether any adjustments are needed.

No explicit discussion of operational risks or failures was included in the available transcript.

No structured question and answer exchange was included in the available transcript. The call was delivered as an on-demand web presentation, with instructions for viewers to send questions or comments to Asanuma's Corporate Communications department directly.