Breaking Down JGC Holdings Corporation Financial Health: Key Insights for Investors

Dig into JGC Holdings Corporation's latest financial snapshot: the company posted annual revenue of 858.08 billion yen for FY ending March 31, 2025 (a +3.06% year-over-year rise), while TTM revenue as of Sept 30, 2025 stood at 832.63 billion yen (a -0.41% Y/Y change) and quarterly revenue fell -5.49% versus the prior year - with revenue per employee at 99.54 million yen across 8,365 staff and a market cap near 2.92 billion USD; profitability pressures include an operating loss of 11.4 billion yen for FY Mar 2025 and a 2,213 million yen non-operating foreign exchange loss, while balance sheet metrics show total assets of 738.6 billion yen, current assets of 523.1 billion yen, total net assets of 381.2 billion yen and an improved equity ratio of 51.4% as of June 30, 2025; valuation data as of Dec 10, 2025 lists the stock at 23.24 USD with TTM revenue of 5.63 billion USD, a P/S of 0.52, a TTM net loss of 10.20 million USD (EPS -0.04 USD) and a 52-week range of 13.18-24.11 USD; persistent project risks (Taiwan delays, Saudi subcontractor distress, Canada cost increases) sit alongside constructive signs - an upward revision to the FY Mar 2026 earnings forecast, new overseas EPC agreements and major contracts such as the Abu Dhabi LNG plant - all of which demand a close read of the detailed revenue, profitability, debt, liquidity, valuation and risk breakdowns that follow.

JGC Holdings Corporation (1963.T) - Revenue Analysis

• Fiscal year (FY ending March 31, 2025) revenue: 858.08 billion yen (+3.06% vs FY2024: 832.60 billion yen).
• Trailing twelve months (TTM) revenue as of Sep 30, 2025: 832.63 billion yen (-0.41% YoY).
• Quarterly revenue for period ending Sep 30, 2025: down 5.49% vs same quarter prior year.
• Workforce: 8,365 employees; revenue per employee: 99.54 million yen.
• Market capitalization: ~2.92 billion USD.
• Revenue consistency: variability across projects and quarters, indicating project timing and execution are key drivers of near-term revenue swings.

• Interpretation: FY growth shows underlying contract wins or ramping projects, but TTM decline and quarterly contraction suggest uneven project delivery or shifting revenue recognition timing.
• Investor focus areas: backlog composition, project margins, change orders and completion schedules, and regional/project concentration that drive quarter-to-quarter volatility.

JGC Holdings Corporation (1963.T) - Profitability Metrics

JGC Holdings reported a challenging fiscal year ending March 31, 2025, with profitability pressured by cost overruns on ongoing projects and currency-driven non-operating losses. Key headline figures and context:

• Operating loss (FY2025): 11.4 billion yen - the second consecutive fiscal-year operating loss.
• Non-operating expense (FY2025): 2,213 million yen attributable to foreign exchange losses from yen appreciation.
• Net loss recorded in FY2025 due largely to higher estimated construction costs despite increased sales.
• Revenue increased year-over-year, but was insufficient to offset rising project costs and other expenses.
• Analyst coverage remains mixed-several analysts maintain a 'Hold' while others flag ongoing profitability risk.

Operational and margin drivers observed:

• Project cost estimates revisited upward for several large, ongoing EPC contracts - primary driver of the operating loss.
• Yen appreciation produced realized/unrealized forex losses, creating a 2,213 million yen non-operating expense hit.
• Sales growth has not translated to margin recovery due to cost overruns and execution inefficiencies.

Management actions and investor considerations:

• Programmes launched to address project cost overruns, including tighter cost controls, renegotiation of subcontractor terms, and enhanced project governance.
• Operational efficiency initiatives underway to restore margins and return to profitability.
• Watch analyst updates: ratings are mixed and contingent on visible progress in cost control and project delivery.

For more on shareholder composition and recent investor interest, see: Exploring JGC Holdings Corporation Investor Profile: Who's Buying and Why?

JGC Holdings Corporation (1963.T) - Debt vs. Equity Structure

• Total assets: 738.6 billion yen (June 30, 2025).
• Current liabilities: 316.9 billion yen; Non-current liabilities: 40.4 billion yen.
• Equity ratio: 51.4% (June 30, 2025) vs. 49.8% (March 31, 2025).
• Active debt management measures in place to maintain stability during project challenges.
• Corporate focus on optimizing capital structure - balancing reduced debt with equity-strengthening actions.

• Targeted repayment and refinancing to smooth near-term cash flow pressures from large-scale projects.
• Selective use of equity financing to bolster the balance sheet and improve solvency metrics.
• Cost and working-capital initiatives aimed at reducing reliance on short-term borrowings.

• Some analysts maintain a 'Hold' rating, citing the improved equity ratio and clearer deleveraging path.
• Others express concern over profitability trends and project execution risks that could pressure cash flows and margins.

JGC Holdings Corporation (1963.T) - Liquidity and Solvency

Key balance-sheet snapshots and recent trends indicate a company actively addressing liquidity stress from project delays and cost overruns while improving its solvency position through capital structure actions.

• Improved equity ratio (51.4% vs 49.8% quarter-on-quarter) reflects stronger capitalization and a higher proportion of financing from shareholders' equity.
• Current assets of ¥523.1 billion provide liquidity buffers, but project-related cash strain remains a near-term focus.

Actions and policy measures implemented or signaled by management:

• Active liquidity management to mitigate cash-flow pressure caused by delayed projects and cost overruns (short-term cash pooling, working-capital controls).
• Optimization of capital structure - prioritizing equity retention and measured reduction of debt balances.
• Financial strategy explicitly targets lowering leverage and increasing equity financing to improve long-term solvency metrics.

Market and analyst context:

• Analyst coverage is mixed: several firms maintain a 'Hold' stance while others cite concerns over near-term profitability and margin pressure from project execution issues.
• Investor focus is likely to remain on cash-generation, progress in resolving project cost overruns, and the company's ability to convert current-assets buffers into steady operating cash flow.

For background on corporate direction supporting these financial measures see: Mission Statement, Vision, & Core Values (2026) of JGC Holdings Corporation.

JGC Holdings Corporation (1963.T) - Valuation Analysis

Key market and valuation metrics for JGC Holdings Corporation (1963.T) as of December 10, 2025:

• Stock price: 23.24 USD
• Market capitalization: ~2.90 billion USD
• Trailing twelve months (TTM) revenue: 5.63 billion USD
• TTM net income: -10.20 million USD (net loss)
• TTM EPS: -0.04 USD
• Price-to-Sales (P/S) ratio: 0.52
• Price-to-Earnings (P/E) ratio: Not applicable (negative earnings)
• 52-week range: 13.18 USD - 24.11 USD

Interpretation points for investors:

• Valuation floor: A P/S of 0.52 places JGC well below 1x sales, implying the market prices the company conservatively relative to revenue.
• Profitability concern: Negative TTM net income and EPS remove standard P/E-based valuation comparisons, increasing reliance on revenue multiples, backlog, and cash flow trends.
• Volatility: The 52-week swing from 13.18 USD to 24.11 USD indicates meaningful share-price volatility - risk-tolerant investors may find entry points on weakness.
• Analyst sentiment: Mixed - several analysts maintain a Hold while others highlight ongoing profitability pressures and uncertain near-term earnings recovery.
• Relative size vs. peers: Market cap (~2.90B USD) vs. TTM revenue (5.63B USD) suggests a price-to-revenue positioning that could be attractive if profitability is restored.

For additional investor context and ownership dynamics, see: Exploring JGC Holdings Corporation Investor Profile: Who's Buying and Why?

JGC Holdings Corporation (1963.T) Risk Factors

• Project-specific execution risks: delays and cost overruns on major EPC projects in Taiwan, Saudi Arabia and Canada have forced upward revisions to estimated construction costs and margins.
• Foreign exchange losses: the fiscal year ending March 2025 recorded a non-operating foreign exchange loss of ¥2,213 million, attributed to the appreciation of the yen versus project currencies.
• Profitability pressure: operating and net losses for the fiscal year ended March 31, 2025 were primarily driven by higher estimated costs on ongoing projects, leading to negative operating cash flow from project activities.
• Counterparty risk: subcontractor financial distress (notably on Saudi Arabia projects) increased the risk of completion delays, rework and additional cost recognition.
• Input-cost inflation: rising construction and materials costs (highlighted by Canada project increases) compress contract margins where cost pass-through is limited.
• Market sentiment and analyst views: analyst coverage is mixed-some maintain a 'Hold' stance while others highlight ongoing profitability concerns, creating subdued investor confidence.
• Balance-sheet and financing strategy risk: management is pursuing debt reduction and greater equity financing to strengthen liquidity, but execution of these measures is critical to restore financial flexibility.

• Active mitigation measures: management reports ongoing actions to address project cost overruns, remediate operational inefficiencies, renegotiate subcontractor agreements, and accelerate margin recovery on higher-risk contracts.
• Financial strategy: emphasis on debt reduction and enhanced equity financing to rebuild liquidity buffers and reduce refinancing risk.
• Investor considerations: monitor quarterly project updates, revisions to estimated completion costs, FX sensitivity disclosures, and progress on financing initiatives.

JGC Holdings Corporation (1963.T) - Growth Opportunities

• Revised FY Mar-2026 consolidated forecast (company announcement):

• Drivers cited by management:

• Increased revenue from additional agreements and scope expansions on overseas EPC projects (higher billings recognized in FY2026).
• Improved project profitability due to steady execution and better cost control across multiple active projects.
• Major contract wins bolstering backlog and near-term revenue visibility, notably participation in large-scale LNG and petrochemical projects such as the Abu Dhabi LNG-related work.

• Portfolio and geographic diversification initiatives:

• Targeting emerging markets in Africa, Southeast Asia, and the Caspian region to offset cyclical risk in established markets.
• Pursuing non-LNG engineering opportunities (e.g., hydrogen, CCS, petrochemicals, and heavy industrial facilities) to broaden service mix.
• Local partnerships and consortium bids to win larger integrated EPC roles while sharing execution risk.

• R&D and competitive-edge investments:

• Increased R&D spending to develop low-carbon process technologies, modular construction methods, and digital engineering tools (annual R&D budget expanded toward the low-double-digit billions of yen range).
• Deployment of digital project controls and advanced procurement to compress schedules and improve margins.

• Implications for investors:

• Upwardly revised earnings and a stronger backlog improve near-term cash generation potential and support returns to shareholders (dividend policy and buyback capacity tied to realized cash flow).
• Deleveraging combined with equity-strengthening measures reduces financial risk and increases capacity to bid on large, capital-intensive projects.
• Concentration risk remains tied to execution on major overseas projects; monitoring contract amendments, change orders, and margin realizations will be key.