Tear Corporation (TSE: 2485), a Nagoya-based operator of funeral halls (direct-managed and franchised), reported first-half results on May 14, 2026 for the six months to March 2026 (fiscal year ends September). Revenue edged down 1.4% year-on-year to ¥11,422 million, operating profit fell 35.9% to ¥1,004 million, ordinary profit dropped 42.3% to ¥909 million, and interim net profit attributable to owners declined 49.1% to ¥517 million.
Lower funeral volumes and prices weigh on profit
Although Japan's ageing population underpins long-term demand, the funeral industry continues to see falling unit prices amid smaller family sizes and a shift to smaller services. Tear's funeral count fell 3.6% to 10,308, and the average funeral price eased 1.0%; the core funeral segment posted revenue of ¥10,277 million (−4.3%) with segment operating profit of ¥1,834 million (−23.1%). Higher advertising, personnel and integration costs added to the margin pressure.
Network expansion via direct stores and M&A
The group continued to grow its network through new openings and acquisitions, ending the half with 222 funeral halls (97 direct-managed, 75 franchised, 21 Hakkoden, 26 Tokai Tenrei and 3 Tear Hokkaido). The July 2025 acquisition of Memoria Japan — three halls centred on Sapporo, now renamed Tear Hokkaido — contributed to the period.
Tear's strategy centres on transparent, clearly-priced funeral services, staff training and dominant-area ("dominant") store expansion, combining directly-run and franchised halls, with M&A positioned as a key part of its growth plan.
| Metric | H1 FY2026 | H1 FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 11,422 | 11,584 | −1.4% |
| Operating profit (¥ million) | 1,004 | 1,566 | −35.9% |
| Ordinary profit (¥ million) | 909 | 1,575 | −42.3% |
| Net profit (¥ million) | 517 | 1,016 | −49.1% |
| Funeral segment revenue (¥ million) | 10,277 | 10,738 | −4.3% |
| Funeral count | 10,308 | 10,693 | −3.6% |
| Funeral halls (number) | 222 | — | — |
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