Kodensha FY26 Operating Profit Climbs 26% to ¥3.9 Billion on Electrical-Works Demand

Kodensha Co., Ltd. (TSE: 1948) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. The electrical-construction and engineering contractor posted revenue of ¥44,234 million, up 12.7% year-on-year from ¥39,264 million, and operating profit of ¥3,893 million, up 26.3% from ¥3,081 million. Ordinary profit rose 26.7% to ¥4,015 million, while net profit attributable to owners of the parent edged up 3.4% to ¥2,832 million from ¥2,737 million. Basic EPS came in at ¥324.28 versus ¥309.66, ROE was 12.1%, and the operating margin widened to 8.8%.

Electrical-works demand drives a strong top and operating line

Kodensha builds electrical facilities for buildings, plants and infrastructure, and adds information/communications and air-conditioning installation work. Firm demand across these areas lifted revenue 13% and operating profit 26% — well ahead of the top line — pointing to favourable project mix and execution. The operating margin of 8.8% is a solid level for an electrical contractor and marks an improvement on the prior year, when revenue and operating profit had grown more modestly.

Net profit lags on a tougher prior-year comparison

Despite the double-digit gains at the operating and ordinary level, net profit attributable to owners rose only 3.4%. The muted bottom-line growth reflects a prior year that had been inflated by one-off items, making the FY3/2025 base unusually high. Comprehensive income, by contrast, surged 66.6% to ¥4,108 million, lifted by valuation movements on the company's investment holdings.

Sturdy balance sheet, ¥100 dividend

The balance sheet remained robust: total assets stood at ¥39,202 million and net assets at ¥25,182 million, for an equity ratio of 63.8% and book value per share of ¥2,864.54. Operating cash flow was ¥3,350 million and period-end cash and equivalents were ¥892 million. Reflecting the strong year, Kodensha raised its FY3/2026 annual dividend to ¥100.00 per share, up from ¥84.00 — a 19.0% increase.

FY3/2027 guidance strikes a cautious tone

For FY3/2027, management guides for revenue of ¥45,000 million (+1.7%) but expects profits to retreat from this year's elevated level: operating profit of ¥3,600 million (-7.5%), ordinary profit of ¥3,650 million (-9.1%), and net profit attributable to owners of ¥2,400 million (-15.3%), with EPS of ¥274.80. The annual dividend is forecast to be held at ¥100.00. The cautious outlook implies a normalisation after a particularly strong FY3/2026, even as the company keeps payouts steady.

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.