JGC HOLDINGS CORPORATION1963

Results over the years

From the five-year summary in the latest annual report (consolidated where available). Operating profit is shown only for the two years the report tags.

Why the market may be pricing it low

• Past unprofitable overseas projects caused the company to miss its mid-term profit targets, leaving the market wary of earnings swings in the EPC business.

  過年度の不採算案件の影響から目標は未達成となりましたが、ROEについては目標を達成しましたManagement policy

• Costs from the Middle East conflict that began in February 2026 are already baked into results, and with many projects underway there, the risk is seen as ongoing.

  ２０２６年２月から始まった中東地域での武力衝突によるプロジェクトのコスト増加を織り込んだMD&A

• A large share of sales depends on a few overseas customers like Saudi Aramco, so delays in their investment decisions can sway results.

  一部の顧客において設備投資の最終決定時期を2026年度以降に先送りする動きが見られましたMD&A

What could close the gap

• The new BSP2030 mid-term plan sets a rising DOE dividend target, signaling continuous dividend increases.

  DOE目標は2027年３月期に３%から始め、2031年３月期に向けて４%を目指すDividend policy

• Management reports that strengthened project execution has reduced troubled projects, with margins improving sharply in fiscal 2025.

  遂行中案件における懸念材料が減少しつつあり、2025年度では採算を大きく改善することができましたManagement policy

• The company itself assumes that disruption to project execution from the Middle East situation will end in the first half of the following fiscal year.

  翌連結会計年度前半に中東地域におけるプロジェクト遂行に支障がなくなるとの想定に基づきMD&A

How a buyer could still lose (value trap)

• Ordinary profit has swung wildly from ¥30bn to ¥50.6bn to just ¥0.4bn to ¥11.3bn to ¥58.2bn, so the recent high profit may not persist.

  Based on the figures below

• The core engineering business involves multi-year complex projects where political shifts or partner defaults can structurally erode margins at any time.

  契約締結からプラント引渡しまで複数年に渡る長期間を要します。その間の政治・社会情勢の変化...によるプロジェクトの計画変更、中止、中断又は延期等のリスクRisk factors

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✗Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥745.3bn

Operating profit

¥35.4bn

Net profit

¥41.8bn

Operating cash flow

¥79.9bn

Cash

¥400.6bn

Debt

¥35.2bn

Equity

¥431.2bn

Minority interests (added to EV)

¥1.8bn

Annual report for the year to 2026-03-31