Totech Corp. (TSE: 9960), known as Toh-Tech, released consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue advanced 9.0% to ¥170,013 million, continuing a streak of growth driven by strong capital spending in data centres, semiconductor plants and commercial real-estate refurbishment. Operating profit increased 16.6% to ¥14,691 million, ordinary profit rose 15.5% to ¥15,574 million, and net profit attributable to owners of the parent gained 17.3% to ¥13,133 million. Basic EPS reached ¥319.18 (¥272.06 a year earlier), and return on equity held at 19.5%. The operating margin widened to 8.6% from 8.1%, reflecting improving project mix and operating leverage on the expanded sales base.
Demand drivers: data centres, semiconductor capex, and refurbishment
Totech's core business — procuring and engineering HVAC, air-conditioning, refrigeration, environmental equipment and related building-systems for commercial and industrial clients — benefited from an acceleration in domestic capital expenditure. Data-centre construction and expansion programmes by major cloud and telecommunications operators continued to create large-scale orders for precision air-conditioning and power-management systems. Semiconductor manufacturers' facility-investment cycles also contributed substantial project volume. In the commercial sector, renovation and energy-efficiency upgrading of ageing building stock provided steady base demand. Changes in the consolidated scope during the year included the addition of one new subsidiary (Sanoh Kiko Co., Ltd.) and the exclusion of two companies (Totech Denkou Co., Ltd. and Quantum Security System Pte. Ltd.), narrowing the engineering-contracting footprint while reinforcing the domestic trading and services core.
Balance sheet strengthens; equity ratio rises to 64.0%
Total assets grew to ¥115,120 million from ¥105,229 million, while net assets increased to ¥73,670 million from ¥61,229 million. The equity ratio strengthened to 64.0% from 58.2%, and book value per share rose to ¥1,796.55 from ¥1,487.75 — reflecting a year of strong earnings retention. Comprehensive income for FY3/2026 reached ¥18,417 million (+71.8%), well ahead of net profit, driven by valuation gains on investment securities. Operating cash flow came in at ¥9,594 million, down from ¥13,883 million in the prior year, with investing outflows of ¥8,506 million and financing outflows of ¥4,973 million. Cash and equivalents ended the period at ¥9,211 million.
Dividend raised to ¥128; FY27 guides ¥18.0 billion operating profit
The board declared an annual dividend of ¥128.00 per share for FY3/2026 (¥35 interim + ¥86 year-end), up from ¥116.00 in the prior year, representing a payout ratio of approximately 40.1%. For FY3/2027, Totech guides revenue of ¥180,000 million (+5.9%), operating profit of ¥18,000 million (+22.5%), ordinary profit of ¥18,500 million (+18.8%), and net profit of ¥13,700 million (+4.3%), with EPS of ¥334.10. The planned dividend for FY3/2027 is maintained at ¥128.00 (¥42 interim). The guidance implies management expects operating-margin expansion to continue as project quality improves and the sales mix shifts toward higher-value engineering services.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 170.0 | 156.0 | +9.0% |
| Operating profit (¥ billion) | 14.7 | 12.6 | +16.6% |
| Ordinary profit (¥ billion) | 15.6 | 13.5 | +15.5% |
| Net profit attrib. to owners (¥ billion) | 13.1 | 11.2 | +17.3% |
| EPS (¥) | 319.18 | 272.06 | +17.3% |
| Operating margin | 8.6% | 8.1% | +0.5pp |
| ROE | 19.5% | 19.5% | — |
| Equity ratio | 64.0% | 58.2% | +5.8pp |
| Operating cash flow (¥ billion) | 9.6 | 13.9 | -30.9% |
| Annual dividend (¥) | 128.00 | 116.00 | +10.3% |
| FY27 operating profit guidance (¥ billion) | 18.0 | — | +22.5% |
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.