Taisei has raised its operating profit forecast for the year to March 2027 to ¥212bn from ¥188bn, with no change to its ¥2.42tn sales forecast. The extra ¥24bn rests on margins, not volume.
Where the margin comes from
In the forecast revision notice, Taisei attributes the increase mainly to better profit margins in domestic civil engineering and building construction. Higher gross profit is expected to absorb a rise in selling, general and administrative expenses that the company links to higher personnel costs.
The detail sits in the standalone forecast. Taisei now expects a completed-works gross margin of 16.1%, against 14.0% previously. Civil engineering moves to 21.4% from 18.8%, and building to 14.2% from 12.2%. Standalone operating profit is forecast at ¥175bn, up ¥30bn from the earlier ¥145bn. The consolidated revision follows from the standalone one.
What the consolidated numbers say
Consolidated ordinary profit is also forecast at ¥212bn, up ¥25bn, and profit attributable to owners of the parent at ¥170bn, up ¥19bn from ¥151bn. The notice puts the operating profit rise at 12.8%. Last year's consolidated operating profit was ¥188.0bn, so the revised forecast sits clearly above it.
The net profit forecast is roughly flat on last year's ¥170.0bn, according to Taisei's interim results summary.
First-half results give the forecast some support. Consolidated operating profit for the six months to September 2026 was ¥102.7bn, up 26.4% on a year earlier, which Taisei says is 48.5% of the revised full-year figure.
The notice does not put a figure on the personnel-cost increase, so how much margin Taisei is giving back to wages is not stated. It also treats the 16.1% margin as an expectation for the full year, not a result.