Tokyo Gas (9531) Q1 2027 earnings summary

Executive summary

• Net sales increased 4.0% year-over-year in Q1 FY27/3 to ¥673,436 million, driven by growth in North American shale gas, but profit declined due to lower extraordinary income and time lag effects in gas and electric power segments.

• Operating profit fell 11.4% to ¥55,412 million, and segment profit dropped by 49 hundred million yen, mainly from Energy solutions, while Overseas business saw profit growth.

• Net profit attributable to owners of parent dropped 65.0% to ¥35,569 million, primarily due to the absence of prior-year gains from foreign currency translation adjustments.

• Q1 results are in line with previous forecasts; full-year guidance and shareholder return plans remain unchanged.

Financial highlights

• Q1 FY27/3 net sales: 6,734 hundred million yen (+4.0% YoY); operating profit: 554 hundred million yen (-11.4% YoY); segment profit: 568 hundred million yen (-8.0% YoY); net profit: 355 hundred million yen (-65.0% YoY).

• Extraordinary profit in Q1 FY27/3 was 83 hundred million yen, down from 748 hundred million yen in Q1 FY26/3.

• Full-year FY27/3 forecast: net sales 29,470 hundred million yen (+4.0% YoY), segment profit 1,950 hundred million yen (-3.1% YoY), net profit 1,370 hundred million yen (-39.6% YoY).

• ROE forecast for FY27/3 is 8.0%, down from 13.2% in FY26/3.

• Comprehensive income was ¥51,908 million, up from a loss of ¥65,919 million in the prior year.

Outlook and guidance

• Full-year forecast remains unchanged, with economic assumptions maintained from Q2 onwards.

• Macro-environmental impacts from the Middle East are partially reflected in the forecast; further changes will be incorporated as needed.

• Dividend forecast for FY27/3 is 120 yen/share, up from 110 yen in FY26/3; share buyback of 500 hundred million yen in H1.