Fudo Tetra Corporation (TSE: 1813) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 17.5% year-on-year to ¥81,700 million, while operating profit surged 86.3% to ¥5,919 million from ¥3,177 million. Ordinary profit advanced 81.9% to ¥6,124 million, and net profit attributable to owners of the parent more than doubled, rising 102.6% to ¥4,461 million from ¥2,202 million. Basic EPS came in at ¥294.62, up from ¥145.26. The operating margin widened to 7.2% from 4.6%, and return on equity climbed to 12.3% from 6.6%. Comprehensive income increased 84.6% to ¥4,735 million.
A foundation-engineering and coastal-protection specialist
Fudo Tetra is a mid-cap general contractor best known for two franchises: ground-improvement and foundation engineering (the legacy of Fudo Construction), and the marine and disaster-prevention business built around its signature tetrapod wave-dissipating concrete blocks, which line breakwaters and coastlines across Japan. The group's earnings are geared to domestic public-works and infrastructure-resilience spending — flood control, port and harbor reinforcement, liquefaction countermeasures and seismic retrofitting — areas that have benefited from sustained government investment in national disaster preparedness.
Margin expansion drove the profit leap
The standout feature of the result was the disproportionate growth in profit relative to revenue. With sales up 17.5% but operating profit up 86.3%, the operating margin expanded by roughly 2.6 percentage points, indicating a markedly more favorable project mix and improved execution on higher-value work during the year. Both ordinary profit (+81.9%) and net profit (+102.6%) ran well ahead of the top line, with net profit further amplified at the bottom. On a parent-only basis, Fudo Tetra reported revenue of ¥75,204 million (+18.1%), operating profit of ¥4,902 million (+59.7%) and net profit of ¥3,806 million (+89.2%).
Balance sheet and cash flow
Total assets rose to ¥71,168 million from ¥64,148 million, and net assets increased to ¥38,541 million from ¥34,675 million, leaving the equity ratio essentially flat at 53.5% (from 53.3%). Book value per share rose to ¥2,513.46 from ¥2,262.99. Cash flow, however, ran counter to the earnings strength: operating activities used ¥2,302 million (versus a ¥621 million inflow a year earlier) and investing activities used ¥1,294 million, while financing activities provided ¥3,648 million. Period-end cash and equivalents stood at ¥10,422 million. The negative operating cash flow despite strong reported profit reflects the working-capital swings typical of a construction-contracting business as receivables and work-in-progress build on a rising order book.
Dividend nearly doubled; 20th-anniversary bonus ahead
Reflecting the record profit, Fudo Tetra raised its full-year dividend to ¥115.00 per share (¥0 interim + ¥115.00 year-end), up sharply from ¥60.00 the prior year, for a consolidated payout ratio of 39.0% and total dividends of ¥1,759 million. For FY3/2027 the company guides to an unchanged total dividend of ¥115.00, but restructures it as a ¥30.00 interim plus an ¥85.00 year-end — the ¥30.00 interim payment includes a special 20th-anniversary commemorative dividend marking two decades since the company's formation.
FY27 guidance: a step back after a record year
Management's outlook for FY3/2027 is conservative after the exceptional FY26 result. Guidance calls for revenue of ¥81,000 million (−0.9%), operating profit of ¥4,800 million (−18.9%), ordinary profit of ¥4,900 million (−20.0%) and net profit attributable to owners of ¥3,200 million (−28.3%), implying basic EPS of ¥211.23. The projected normalization suggests management views the FY26 margin expansion as partly attributable to a favorable mix that is not expected to repeat at the same scale — though the guided profit level still sits well above the FY25 base.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 81,700 | 69,557 | +17.5% |
| Operating profit (¥ million) | 5,919 | 3,177 | +86.3% |
| Ordinary profit (¥ million) | 6,124 | 3,366 | +81.9% |
| Net profit attrib. to owners (¥ million) | 4,461 | 2,202 | +102.6% |
| Basic EPS (¥) | 294.62 | 145.26 | +102.8% |
| Operating margin | 7.2% | 4.6% | +2.6pp |
| ROE | 12.3% | 6.6% | +5.7pp |
| Equity ratio | 53.5% | 53.3% | +0.2pp |
| Annual dividend (¥) | 115.00 | 60.00 | +91.7% |
| FY27 revenue guidance (¥ million) | 81,000 | — | −0.9% |
| FY27 operating profit guidance (¥ million) | 4,800 | — | −18.9% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.