Source disclosure: February 05, 2026
SHIMIZU CORPORATION [1803.T]
TOKYO, Feb 5 (Reuters) - Shimizu Corporation, one of Japan's leading construction firms, announced on Sunday revisions to its full-year earnings forecast and dividend outlook for the fiscal year ending March 31, 2026. The company also disclosed significant special items including an impairment loss totaling ¥910.0 billion.
The revised forecasts reflect improved performance across various business segments, particularly in domestic construction projects. According to the statement, Shimizu now expects consolidated net sales of ¥2,010.0 billion for the fiscal year, up from the previous estimate of ¥1,910.0 billion. This represents a 5.2 percent increase over the prior projection. Additionally, the company anticipates a substantial rise in operating income to ¥110.0 billion, marking a 41 percent improvement compared to the earlier guidance of ¥78.0 billion. These enhancements are attributed to better-than-expected cost management and higher profitability margins in both building and civil engineering works.
Shimizu also reported a notable upward revision in its individual performance metrics. For instance, it now predicts individual net sales of ¥1,550.0 billion, a 5.4 percent growth from the initial forecast of ¥1,470.0 billion. Operating profit is expected to surge by 54.7 percent to ¥82.0 billion, while ordinary income is projected to jump by 59.5 percent to ¥92.5 billion. As a result, the company’s earnings per share are anticipated to climb to ¥190.26, representing a significant boost from the previously estimated ¥107.67.
Furthermore, Shimizu detailed two major special items affecting its financial results. Firstly, the company plans to record a special gain of ¥910.0 billion due to the sale of investment securities, which exceeds the previous expectation by ¥450.0 billion. Secondly, Shimizu acknowledged a substantial impairment loss of ¥220.0 billion related to its U.S.-based real estate subsidiary, Shimizu Realty Development (U.S.A.), Inc., stemming from declining office property values and increased interest rates following the onset of the COVID-19 pandemic. Despite this impairment charge, the overall positive adjustments to core operations have led to a more optimistic earnings outlook and a corresponding increase in the annual dividend payout to ¥65 per share from the originally planned ¥44 per share.
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