Tobishima Holdings FY26 Net Profit Jumps 30% to ¥4.85 Billion; Building Segment Surges as Civil Engineering Slips

Tobishima Holdings Corporation (TSE: 256A) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 0.7% year-on-year to ¥139,255 million, operating profit climbed 7.5% to ¥6,910 million, and ordinary profit advanced 4.2% to ¥5,968 million. Net profit attributable to owners of the parent surged 30.2% to ¥4,845 million from ¥3,723 million, lifting basic EPS to ¥253.01 from ¥194.46 and ROE to 9.3% from 7.5%. The company — the holding company of mid-sized general contractor Tobishima Corporation, a builder with a long history in marine, coastal and civil-infrastructure works — was established on October 1, 2024 by sole share transfer, so management notes that the FY3/2025 comparison is presented for reference only.

Building construction drives the profit beat

The headline net-profit jump far outpaced the modest top-line growth, reflecting a favorable shift in the segment mix and a one-off boost from acquisitions. By reporting segment, Construction (Building) was the standout: completed-works revenue rose 0.8% to ¥51,535 million while segment profit jumped 55.3% to ¥3,991 million as projects progressed smoothly. By contrast, Construction (Civil Engineering) softened — completed-works revenue fell 12.3% to ¥60,229 million and segment profit declined 20.6% to ¥4,371 million, hit by delayed construction starts tied to client-side coordination slippage on public works. The Growth Businesses & Other segment, which houses construction-related services and construction-DX support, grew briskly with revenue up 48.7% to ¥27,490 million and segment profit up 18.7% to ¥2,458 million.

Orders and backlog hold firm

At the Tobishima Corporation non-consolidated level, total new orders eased 1.0% to ¥113,882 million, as a 32.0% slide in domestic public-sector civil orders was largely offset by a 136.3% surge in domestic private-sector civil orders to ¥41,756 million. The order backlog carried into the next fiscal year edged up 0.5% to ¥192,841 million, providing a solid base of work to convert: civil-engineering backlog rose 5.3% to ¥123,734 million even as building backlog slipped 7.1% to ¥69,107 million. Research and development spending was broadly flat at ¥683 million.

M&A expands the consolidation perimeter

During the year Tobishima broadened its group through acquisitions that fed the Growth Businesses segment. On January 30, 2026 it acquired 100% of Tachi Construction Co., Ltd. and its five subsidiaries (engaged in civil/building works, gravel extraction, crushed-stone manufacturing and real-estate leasing), bringing them into the consolidation perimeter from a deemed acquisition date of January 1, 2026 at an acquisition cost of ¥5,887 million; the deal generated ¥365 million of negative goodwill recognized as an extraordinary gain. An earlier acquisition of Kyowa Seisan in April 2025 added a further ¥133 million of negative goodwill. These items helped propel net profit well ahead of operating profit. Management frames the M&A around an "infrastructure anti-aging" growth thesis — pairing the group's engineering, project-management and talent-development capabilities with regionally rooted contractors.

Balance sheet and cash flow

Total assets grew to ¥163,096 million from ¥157,166 million, lifted by the newly consolidated subsidiaries, while net assets rose to ¥54,409 million from ¥50,450 million. The equity ratio improved 1.3 points to 33.3%, and book value per share climbed to ¥2,836.57 from ¥2,629.92. Operating cash flow rose to ¥3,531 million from ¥2,806 million, but investing activities consumed ¥4,654 million (versus ¥1,294 million prior year) on the subsidiary acquisitions and capital expenditure, and financing was a ¥4,017 million outflow on borrowing repayments and dividends. Period-end cash and equivalents fell 19.9% to ¥20,425 million.

Dividend raised to ¥105; FY27 guides double-digit profit growth

The FY3/2026 annual dividend was raised to ¥105.00 per share (paid entirely as a year-end dividend) from ¥90.00, for a total payout of ¥2,018 million, a 41.5% consolidated payout ratio and a 3.8% dividend-on-equity ratio; the dividend payment start date is June 29, 2026. The payout is funded in full from other capital surplus. For FY3/2027, management guides a further increase to ¥110.00 annual. Full-year FY3/2027 guidance points to revenue of ¥150,000 million (+7.7%), operating profit of ¥8,000 million (+15.8%), ordinary profit of ¥7,000 million (+17.3%), and net profit attributable to owners of ¥4,800 million (-0.9%, against the M&A-boosted FY26 base), with EPS of ¥250.11. Management cited persistent labor and material-cost inflation and chronic worker shortages as the central challenges, and pointed to its medium-term plan through fiscal 2027 — built around expanding the earnings base, capital-cost- and share-price-conscious management, and strengthened governance.

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.