Techno Ryowa Ltd. (TSE: 1965) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 17.2% to ¥98,681 million, operating profit surged 63.7% to ¥15,760 million, ordinary profit rose 66.0% to ¥16,493 million, and net profit attributable to owners of the parent jumped 62.6% to ¥11,797 million. EPS was ¥570.86, ROE reached 19.8% and the operating margin widened to 16.0%. Comprehensive income soared 222.0% to ¥17,697 million.
Facility-engineering demand drives record profit
Techno Ryowa designs and installs air-conditioning, cleanroom and building-utility systems, and is part of the Mitsubishi Electric group. Strong demand and improved project margins lifted profit far ahead of revenue, with operating profit growing nearly four times as fast as the top line as higher-value cleanroom and semiconductor-related work flowed through the order book.
Solid balance sheet
Total assets stood at ¥100,868 million, net assets at ¥66,351 million and the equity ratio at a robust 65.7% (BPS ¥3,233.88). Operating cash flow was ¥12,147 million, comfortably funding dividends and investment while leaving the company in a strongly capitalised position.
Dividend lifted to ¥170; ¥176 guided for FY27
The FY3/2026 annual dividend was raised to ¥170.00 per share (¥50 interim + ¥120 year-end), a payout ratio of 29.8%, up sharply from ¥100.00 the prior year. For FY3/2027 the company forecasts a ¥176.00 dividend (¥88 interim + ¥88 year-end), implying a 30.6% payout ratio against guided earnings.
FY27 guidance: steady
Management guides FY3/2027 revenue of ¥100,000 million (+1.3%), operating profit of ¥16,000 million (+1.5%), ordinary profit of ¥16,500 million (broadly flat) and net profit of ¥11,800 million (flat), with EPS of ¥575.51. After a year of exceptional margin expansion, the outlook points to consolidation at the higher profit level rather than a repeat of the surge.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 98,681 | 84,190 | +17.2% |
| Operating profit (¥ million) | 15,760 | 9,629 | +63.7% |
| Ordinary profit (¥ million) | 16,493 | 9,935 | +66.0% |
| Net profit attrib. to owners (¥ million) | 11,797 | 7,256 | +62.6% |
| EPS (¥) | 570.86 | 344.90 | +65.5% |
| ROE | 19.8% | 14.2% | +5.6pp |
| Annual dividend (¥) | 170.00 | 100.00 | +70.0% |
| FY27 net profit guidance (¥ million) | 11,800 | — | flat |
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.