Totech (9960) investor relations material

Executive summary

• Net sales for Q1 reached a record ¥36.691 billion, up 1.5% year-over-year, driven by strong demand in Product Sales and Construction, especially from redevelopment and private/public sector projects.

• Operating profit declined 12.4% year-over-year to ¥2.601 billion due to accelerated investments in human capital as part of the Second Mid-Term Management Plan.

• Orders received surged 54.1% year-over-year to ¥87.4 billion, supported by robust domestic intake and a large overseas contract; order backlog rose 42.4% year-over-year.

• Profit attributable to owners of parent fell 10.4% year-over-year to ¥1.978 billion, while comprehensive income rose 40.0% to ¥4.806 billion.

Financial highlights

• Net sales: ¥36.691 billion (+1.5% YoY); Operating profit: ¥2.601 billion (-12.4% YoY); Operating profit margin: 7.1% (-1.1ppt YoY).

• Gross profit margin improved by 0.5ppt YoY to 28.4%, with Product Sales margin up 1.1ppt and Construction margin down 0.9ppt.

• Ordinary profit declined 9.5% year-over-year to ¥2.977 billion; profit attributable to owners of parent also declined due to timing shifts in project progress and increased HR investments.

• Basic earnings per share for the quarter were ¥48.24, down from ¥53.63 in the prior year.

• Total assets as of June 30, 2026, were ¥113.018 billion; net assets were ¥74.667 billion.

Outlook and guidance

• Full-year forecasts remain unchanged: Net sales ¥180.0 billion (+5.9%), Operating profit ¥18.0 billion (+5.1%), Ordinary profit ¥18.5 billion, Profit attributable to owners of parent ¥13.7 billion (+4.3%), and basic EPS ¥334.03.

• Business environment expected to remain robust for urban redevelopment, but cost pressures and higher SG&A from salary increases anticipated.

• No revisions to previously announced forecasts.