Besterra, a Tokyo Stock Exchange-listed demolition and plant-maintenance contractor, posted its strongest first-half operating profit on record, even as a writedown on an unlisted equity stake cut its bottom line in half. For the six months to July 31, 2026, net sales rose 15.6% to ¥5.90bn and operating profit more than doubled to ¥574mn, as large demolition contracts ran ahead of schedule and management stuck to more selective, higher-margin orders. Ordinary profit rose 183.2% to ¥609mn. Net profit attributable to owners fell 55.1% to ¥99mn, however, after Besterra booked a roughly ¥500mn valuation loss on an unlisted equity stake whose realizable value had dropped well below its purchase cost, only partly offset by a ¥314mn gain from selling a separate block of policy-held shares.
| Metric | Six months to Jul 2026 | Six months to Jul 2025 | Year-on-year |
|---|---|---|---|
| Net sales | ¥5.90bn | ¥5.10bn | +15.6% |
| Operating profit | ¥574mn | ¥226mn | +154.1% |
| Ordinary profit | ¥609mn | ¥215mn | +183.2% |
| Net profit (parent) | ¥99mn | ¥220mn | -55.1% |
That securities loss also forced Besterra to cut its full-year net profit forecast to ¥530mn from ¥700mn, a 24.3% reduction, even as it left its sales, operating-profit and ordinary-profit targets for the year unchanged at ¥13.0bn, ¥1.00bn and ¥1.02bn. The annual dividend forecast stays at ¥40 per share, made up of a ¥15 interim dividend due for payment on October 13, 2026, and a planned ¥25 year-end payment.
Behind the profit-and-loss line, the balance sheet moved just as sharply. Besterra drew ¥6.0bn in new long-term borrowing during the half to secure working capital for a growing pipeline of large jobs, and total assets rose to ¥13.7bn from ¥8.33bn at the start of the fiscal year. Its equity ratio fell to 38.3% from 64.8% as a result. Cash and deposits rose to ¥7.65bn from ¥1.43bn, and the order backlog climbed 37.3% to ¥8.85bn on a run of large petrochemical-sector wins, with orders received in the half up 48.1% to ¥6.20bn.
The results also carry an update on a fatal accident that Besterra has yet to price into any of these numbers. On April 7, 2026, part of an unloader crane being dismantled at a steel mill in Kawasaki fell during demolition work the company was carrying out, killing four people and injuring two, according to Besterra's earnings presentation. A missing worker's body was confirmed on July 23, 2026. The board set up a recurrence-prevention committee on June 9, 2026, chaired by an outside director, with two of its three members drawn from outside the company. Investigation by the relevant authorities is continuing, and Besterra says it is cooperating fully; the company adds that stating its own view on the cause is difficult at present. Besterra booked roughly ¥15mn of accident-related costs in selling, general and administrative expenses this half, but says the accident's broader financial impact cannot yet reasonably be estimated and has therefore been excluded from its full-year forecast. The company says it will disclose promptly, under Japan's timely-disclosure rules, if the accident is found to have a material effect on earnings.