Totech (9960) Q1 2026 earnings summary

Executive summary

• Achieved record-high Q1 sales and profits, driven by strong demand from redevelopment projects, private-sector investments, and public-sector projects.

• All core business areas—HVAC, instrumentation, and energy—showed growth, with firm order trends.

• Both Product Sales and Construction businesses contributed to growth, with improved profit margins at order placement.

• Net sales rose 14.0% year-over-year to ¥36,161 million for the quarter ended June 30, 2025, driven by steady construction demand and strong order intake in both business segments.

• Comprehensive income reached ¥3,419 million, a 21.0% increase year-over-year.

Financial highlights

• Net sales rose 14.0% year-over-year to ¥36.1bn (+¥4.4bn).

• Operating profit increased 32.9% year-over-year to ¥2.96bn, with ordinary profit at ¥3.28bn and profit attributable to owners of parent at ¥2.2bn—all record highs.

• Operating profit margin improved by 1.2 ppt year-over-year to 8.2%.

• Gross profit margin for Q1 improved by 0.6 ppt year-over-year to 27.9%.

• Basic earnings per share increased to ¥53.33 from ¥48.69 year-over-year.

Outlook and guidance

• FY3/26 full-year forecasts: net sales of ¥160bn (+2.6%), operating profit of ¥15bn (+2.1%), ordinary profit of ¥15.8bn, and profit attributable to owners of parent at ¥10.7bn.

• Business environment expected to remain robust for redevelopment projects, but rising costs and higher SG&A from salary increases anticipated.

• Annual dividend forecast for FY3/26 is ¥104 (payout ratio: 40%).

• No changes to previously announced full-year guidance.