Toei FY26 Net Profit Soars 48% to ¥23.3 Billion; FY27 Guidance Sees Profits Halve

Toei Company, Ltd. (TSE: 9605), the Japanese film, animation and content group behind franchises such as Kamen Rider, Super Sentai, Dragon Ball and One Piece, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 3.0% year-on-year to ¥185,333 million, while operating profit increased 2.7% to ¥36,096 million from ¥35,155 million. Ordinary profit advanced 8.9% to ¥43,543 million, and net profit attributable to owners of the parent jumped 48.3% to ¥23,320 million from ¥15,722 million. Basic EPS came in at ¥374.29 versus ¥253.96.

Equity-method gains lift ordinary and net profit

While operating profit grew only modestly, both ordinary profit and net profit advanced far faster — the result of strong below-the-line contributions. Equity-method investment income rose to ¥4,288 million from ¥3,581 million, helping ordinary profit outpace the operating line. The sharp 48.3% jump in net profit attributable to owners reflects this stronger ordinary-profit base together with a more favorable bottom-line outcome year-on-year. The operating margin held at a healthy 19.5%, while return on equity improved to 8.4%.

Content and library powering profitability

Toei's portfolio spans film and video production and distribution, animation, television content, character licensing and merchandising, and real estate. The group continues to monetize one of Japan's deepest content libraries — its Kamen Rider, Super Sentai and animation properties generate recurring licensing, merchandising and overseas-distribution income that underpins the elevated margin. Comprehensive income, however, fell 14.4% to ¥38,905 million from ¥45,468 million, reflecting smaller mark-to-market gains on the group's investment securities compared with the prior year.

Balance sheet and cash flow

Toei's balance sheet remains robust. Total assets rose to ¥499,129 million from ¥463,639 million, and net assets increased to ¥385,717 million from ¥354,323 million, leaving the equity ratio at 58.3% (from 57.1%). Shareholders' equity rose to ¥291,003 million and book value per share climbed to ¥4,657.03 from ¥4,274.51. Operating cash flow eased to ¥26,716 million from ¥33,646 million; investing activities used ¥4,660 million (a much smaller outflow than the prior year's ¥17,466 million) and financing activities used ¥1,887 million. Period-end cash and equivalents grew to ¥109,995 million from ¥88,987 million.

Dividend doubled on special payout

Reflecting the profit surge, Toei raised its annual dividend to ¥36.00 per share (¥6.00 interim + ¥30.00 year-end), up from ¥18.00 a year earlier. The year-end payment includes a ¥24.00 special dividend (the prior year's year-end had included a ¥6.00 special), and total dividends paid rose to ¥2,341 million, lifting the consolidated payout ratio to 9.6% from 7.1%.

FY27 guidance: a marked profit pullback

Management's FY3/2027 outlook is notably cautious. Revenue is guided to rise 2.0% to ¥189,000 million, but operating profit is seen falling 20.5% to ¥28,700 million, ordinary profit dropping 23.3% to ¥33,400 million, and net profit attributable to owners declining 46.0% to ¥12,600 million — implying EPS of ¥202.23. The steep profit normalization reflects the absence of the one-off gains that boosted FY26, alongside content-slate timing. The dividend forecast for FY3/2027 returns to ¥12.00 per share (¥6.00 interim + ¥6.00 year-end) without a special payout, for a guided payout ratio of 5.9%.

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.