ALSOK FY2026 Net Profit Jumps 23% to Record ¥33.3bn as Security Demand Drives 8% Revenue Growth

Sohgo Security Services Co., Ltd. (TSE: 2331), known by its ALSOK brand and ranking as Japan's second-largest security-services company, posted record full-year results for FY2026 (April 2025 – March 2026) on May 12, 2026. Consolidated revenue rose 8.2% year-on-year to ¥597,026 million, while operating profit advanced 16.7% to ¥46,919 million and ordinary profit climbed 15.8% to ¥49,913 million. Profit attributable to owners of the parent jumped 22.7% to a record ¥33,262 million, up from ¥27,105 million the prior year. Earnings per share reached ¥68.49, compared with ¥55.41, and return on equity improved to 9.2% from 7.9%.

Comprehensive income surged 146.1% to ¥60,430 million, reflecting both the stronger bottom line and favourable valuation movements, while the group also booked an equity-method investment gain of ¥2,842 million. Profitability improved on a broad front, with each major earnings line growing faster than revenue — a sign of operating leverage as ALSOK's high-margin recurring contracts expanded.

Demand across security segments fuels growth

ALSOK's top-line expansion was driven by demand across its core service lines. The group's electronic security business — remote-monitored alarm systems for homes, offices, and commercial facilities — continued to add contracted locations, providing a stable base of recurring revenue. Its guard and patrol services benefited from heightened demand for staffed security at large events, transport hubs, and corporate premises, while the cash-handling and ATM-related operations grew alongside continued outsourcing of cash logistics by retailers and financial institutions. Facility-management and integrated security solutions rounded out the mix, as customers increasingly bundled physical security with building services. The combination of rising contract volumes and disciplined cost control lifted the operating margin to roughly 7.9%, up from 7.3% the prior year.

Balance sheet expands; cash generation strengthens

Total consolidated assets grew to ¥675,024 million from ¥572,402 million a year earlier, while net assets rose to ¥426,941 million from ¥376,000 million. The equity ratio eased to 56.8% from 59.1%, reflecting the faster expansion of the asset base, though the balance sheet remains conservatively capitalised. Net assets per share reached ¥789.42. Cash generation strengthened: operating cash flow rose to ¥53,786 million from ¥42,647 million, comfortably funding investing outflows of -¥39,212 million and financing outflows of -¥7,751 million. Period-end cash and equivalents stood at ¥66,814 million.

Dividend raised to ¥29.20; FY2027 guided at ¥55.7bn operating profit

ALSOK raised the annual cash dividend to ¥29.20 per share for FY2026 (¥14.60 interim + ¥14.60 year-end), representing a payout ratio of 42.6% on consolidated net profit. Looking ahead, the company guided for FY2027 (ending March 2027) with revenue of ¥637,500 million (+6.8%), operating profit of ¥55,700 million (+18.7%), ordinary profit of ¥58,500 million (+17.2%), and net profit of ¥37,300 million (+12.1%), equivalent to EPS of ¥76.75. The forecast points to a further acceleration in operating profit growth as ALSOK continues to scale its recurring-revenue base. The company guided a forecast annual dividend of ¥33.00 per share for FY2027, signalling a continued commitment to progressive shareholder returns.

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.