EXEO Group FY26 Operating Profit Rises 23% to ¥52bn as Telecom Engineering Demand Accelerates

EXEO Group, Inc. (TSE: 1951), Japan's leading telecom and social-infrastructure engineering company, reported FY2026 (year ended March 31, 2026) consolidated results under J-GAAP that showed broad-based top- and bottom-line growth. Revenue rose 17.4% year-on-year to ¥787,715 million, while operating profit advanced 22.5% to ¥52,016 million. Ordinary profit increased 21.2% to ¥52,723 million and profit attributable to owners of the parent climbed 15.5% to ¥31,031 million. Basic EPS rose to ¥151.13 from ¥128.97 the prior year, return on equity improved to 9.4% from 8.5%, and the operating profit margin expanded to 6.6% from 6.3%.

The results reflect continued strong demand from telecom carriers and public-sector clients for network construction and maintenance, facility management, and social-infrastructure work. EXEO Group operates as the parent of a group that includes Chugoku Telecommunications Construction, Kyushu Telecommunications Engineering, and numerous regional and specialized subsidiaries that together cover the full spectrum of Japan's telecom and infrastructure engineering market — from 5G base-station roll-outs and fibre-to-the-premises expansion to power and civil engineering projects.

Balance sheet strengthens as equity ratio holds near 50%

Consolidated total assets grew to ¥691,154 million from ¥642,505 million at end-FY2025, reflecting higher working capital and continued investment in equipment and intangibles. Net assets rose to ¥346,736 million from ¥326,783 million. Equity attributable to owners of the parent stood at ¥342,077 million, giving an equity ratio of 49.5% — slightly down from 50.0% a year earlier but still reflecting a conservatively financed balance sheet. Book value per share improved to ¥1,676.23 from ¥1,551.71.

Operating cash flow at ¥33.2bn; investing outflows moderate

Cash flow from operating activities came in at ¥33,230 million, a solid result that comfortably covered the ¥14,989 million outflow from investing activities and the ¥16,505 million outflow from financing activities. Cash and cash equivalents at year-end stood at ¥41,376 million, up from ¥39,413 million at end-FY2025, pointing to a gradual accumulation of liquidity even after dividends and debt repayment.

Dividend raised to ¥68; payout ratio 45.0%

For FY2026 the company paid an interim dividend of ¥33 per share and a year-end dividend of ¥35 per share, bringing the full-year dividend to ¥68 — up from ¥63 per share in FY2025 and representing a consolidated payout ratio of 45.0% (net assets dividend yield: 4.2%). For FY2027, EXEO guides an interim dividend of ¥40 per share with a target payout ratio of approximately 45.8%, signalling continued shareholder returns.

FY2027 guidance: revenue ¥750.0bn, operating profit ¥56.0bn

For FY2027 (ending March 31, 2027), EXEO Group guides consolidated revenue of ¥750,000 million (−4.8% year-on-year), operating profit of ¥56,000 million (+7.7%), ordinary profit of ¥54,500 million (+3.4%), and net profit of ¥35,500 million (+14.4%), equivalent to ¥174.82 EPS. The modest revenue decline is primarily a reflection of project-completion timing effects in the construction business; operating profit is expected to continue growing as the company benefits from improved project margins, efficiency gains, and stable long-term maintenance contracts. No material changes in consolidation scope, accounting policies, or estimates were reported for the period.

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.