F3/27 1Q Results: Strong; But No New Disclosures Regarding Tokai No.2 Seawall Project

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M

Update

August 5, 2026 10:54 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Hazama Ando (1719) | Japan

Ryo Yagi

Equity Analyst

F3/27 1Q Results: Strong; But

No New Disclosures Regarding

Tokai No.2 Seawall Project

Hazama Ando (1719.T, 1719 JT)

Construction | Japan

AlphaSignals Earnings Reaction

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

Attractive

¥1,950

¥1,826

¥286.4

¥1.4

Key Takeaways

OP was ¥6.5bn (up 22.3% YoY), above our forecast of ¥5.4bn.

Orders ¥133.9bn (up 188.3%), building construction up 203%, civil engineering up

135.1%. Both building construction and civil engineering were strong.

Margins (parent GPM) were 14.1% for building construction (12.1% last year),

12.8% for civil engineering (17.0%).

No new disclosures regarding the Tokai No.2 seawall project.

Share-price implications: Somewhat positive, even though 1Q results and orders

were strong, due to 1) limited expectations for a dividend hike, as the company

provides only a minimum dividend policy and does not disclose a dividend payout

ratio target; and 2) the absence of any new disclosure regarding the Tokai No.2

seawall project.

Exhibit 1:

Hazama Ando (1719.T): Earnings Highlights

JPY mn

Orders(Parent)

Building construction(Parent)

Civil engineering(Parent)

Sales

GP

GPM%

Building construction (Parent)

Civil engineering (Parent)

OP

RP

NP

EPS(JPY)

FY3/26 1Q

A

46,456

36,408

10,047

93,490

12,883

13.8%

12.1%

17.0%

5,302

4,473

3,140

20.03

FY3/27 1Q

e

Consensus

A

54,600

133,935

43,900

110,310

10,700

23,625

99,100

105,044

13,400

14,598

13.5%

13.9%

12.6%

14.1%

15.5%

12.8%

5,400

6,484

5,600

6,336

4,100

4,237

26.1

27.01

YoY

188.3%

203.0%

135.1%

12.4%

13.3%

22.3%

41.6%

34.9%

34.8%

e

460,000

320,000

140,000

490,000

69,100

14.1%

13.3%

15.6%

35,000

35,500

30,900

197.0

FY3/27 1Q-4Q

YoY

Consensus

-13.8%

-17.9%

-2.5%

11.5%

474,667

8.0%

4.1%

33,700

6.7%

33,267

3.9%

…