TONE Co., Ltd. (TSE: 5967) reported consolidated results for the fiscal year ended May 31, 2026 under Japanese GAAP. Revenue rose 3.5% to ¥7,859 million, while profitability improved sharply: operating profit jumped 36.1% to ¥1,364 million from ¥1,002 million, ordinary profit rose 35.0% to ¥1,473 million, and net profit attributable to owners of the parent climbed 38.5% to ¥1,089 million from ¥787 million. Basic earnings per share advanced to ¥50.16 from ¥35.94, and comprehensive income more than doubled, up 108.9% to ¥1,692 million. A 1-for-2 stock split took effect on March 1, 2025, and all per-share figures have been restated to reflect it. TONE is an Osaka-based (Kawachinagano) manufacturer of torque wrenches, hand tools and fastening equipment — including shear wrenches and nut runners — used in construction, bridge-building and manufacturing, and is well known for the "TONE" brand.
Both segments lift profit
Growth was broad-based across TONE's two reporting segments. In the Domestic business, revenue rose 3.4% to ¥6,271 million and segment profit surged 37.7% to ¥733 million, as hand-tool sales were boosted by sales campaigns, channel expansion and TONE-brand marketing, while its machinery line — shear wrenches and nut runners — continued to serve the construction, bridge and manufacturing markets. In the Overseas business, revenue rose 4.0% to ¥1,588 million and segment profit grew 34.3% to ¥630 million, as torque wrenches and new products won demand across Asia and the Americas and shear wrenches and nut runners sold well in North America.
Cash generation strengthens, balance sheet stays solid
Cash flow improved markedly: operating cash flow reached ¥2,258 million, up from ¥629 million a year earlier, while financing activities provided ¥1,614 million and period-end cash stood at ¥5,069 million. The balance sheet remained well capitalised, with total assets of ¥18,108 million, net assets of ¥12,656 million and book value per share of ¥583.97. The equity ratio eased to 69.9% from 77.8% as total assets grew, but capitalisation stayed robust.
Dividend raised, ¥13.00 planned for FY2027
Reflecting the earnings recovery, TONE paid an annual dividend of ¥9.00 for FY2026/5. For FY2027/5 the company plans to lift the payout to ¥13.00, implying a payout ratio of roughly 25.9% and signalling management's confidence in sustaining the improved profitability.
FY2027 guidance: growth continues
For the year ending May 2027, TONE guides to revenue of ¥8,600 million (+9.4%), operating profit of ¥1,500 million (+10.0%), ordinary profit of ¥1,600 million (+8.6%) and net profit of ¥1,100 million (+0.9%), with EPS of ¥50.64. First-half revenue is projected at ¥4,000 million (+17.4%), pointing to a front-loaded year as demand for torque tools and fastening equipment holds firm across its domestic and overseas markets.
| Metric | FY2026/5 | FY2025/5 | YoY |
|---|---|---|---|
| Net sales (¥m) | 7,859 | 7,591 | +3.5% |
| Operating profit (¥m) | 1,364 | 1,002 | +36.1% |
| Ordinary profit (¥m) | 1,473 | 1,091 | +35.0% |
| Net profit (¥m) | 1,089 | 787 | +38.5% |
| Basic EPS (¥) | 50.16 | 35.94 | +39.6% |
| Comprehensive income (¥m) | 1,692 | 810 | +108.9% |
| Operating cash flow (¥m) | 2,258 | 629 | +259.0% |
| Equity ratio | 69.9% | 77.8% | — |
| Dividend per share (¥) | 9.00 | — | — |
| FY2027/5 net sales guidance (¥m) | 8,600 | — | +9.4% |
| FY2027/5 operating profit guidance (¥m) | 1,500 | — | +10.0% |
| FY2027/5 net profit guidance (¥m) | 1,100 | — | +0.9% |
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.