GreenEnergy & Company Swings to Profit on 69.9% Revenue Growth and Raises Full-Year Guidance

Revenue rose 69.9%, and the cost line did not follow

GreenEnergy & Company Inc. (TSE: 1436), the Tokyo-based group listed on the TSE Growth market that develops clean-energy projects, grid-scale storage batteries and housing and real estate, published consolidated results for the three months to July 31, 2026 — the first quarter of the year ending April 30, 2027 — on September 8, 2026 under Japanese GAAP. Revenue rose 69.9% to ¥4,771 million, operating profit reached ¥510 million against ¥5 million a year earlier, ordinary profit was ¥483 million against an ordinary loss of ¥6 million, and net profit attributable to owners of the parent was ¥296 million against a ¥10 million net loss. Earnings per share were ¥23.96 against a restated loss per share of ¥0.83, and a diluted figure of ¥22.68 appears for the first time — the prior-year column carries none. Comprehensive income equalled net profit in both periods, at ¥296 million and negative ¥10 million: the group reports no other comprehensive income at all.

The whole of that swing is made between the revenue line and the operating line. Cost of sales rose 59.9% while revenue rose 69.9%, so gross profit more than doubled, to ¥1,287 million from ¥629 million — an increase of 104.7% computed from the income statement's own ¥1,287,886 thousand against ¥629,007 thousand — and the gross margin widened to 27.0% from 22.4%. Selling, general and administrative expenses grew only 24.7%, to ¥777 million, so their share of revenue fell to 16.3% from 22.2% and the operating margin went to 10.7% from 0.2%. Stated in the thousands the filing itself uses, operating profit of ¥510,447 thousand against ¥5,773 thousand is the 8,741% increase the management discussion reports. The cover page prints a dash rather than a percentage, because at the ¥ million rounding it applies the prior-year figure is only ¥5 million, and the table below follows the cover and leaves the arithmetic to this paragraph.

Below the operating line, a bigger interest bill

Non-operating income of ¥13 million against non-operating expenses of ¥39 million is what takes ¥510 million of operating profit down to ¥483 million of ordinary profit, and the largest single line is interest paid, at ¥34,112 thousand against ¥26,275 thousand — consistent with a balance sheet that ended the quarter carrying ¥3,438 million more short-term debt than it started with. Equity-method investment income rose to ¥7,331 thousand from ¥2,706 thousand while interest received fell to ¥1,283 thousand from ¥2,685 thousand, and the prior year's non-operating income also included ¥11,600 thousand of insurance proceeds that did not recur. Extraordinary items were immaterial on both sides — a ¥22 thousand gain and a ¥139 thousand loss, both on disposals of fixed assets — leaving pre-tax profit of ¥483,727 thousand. Income taxes of ¥187,373 thousand are a 38.7% charge on that figure, and the notes disclose that the group applies an estimated annual effective tax rate to quarterly pre-tax profit rather than computing tax on the quarter itself. A year earlier it booked ¥5,978 thousand of tax on a pre-tax loss, which is how a ¥4 million pre-tax loss became a ¥10 million net loss.

The balance sheet is the other half of the story

Total assets grew ¥4,075 million in three months, to ¥20,615 million, and almost all of the increase is inventory and money paid out ahead of delivery. Current assets rose ¥4,028 million to ¥17,346 million: work in process rose ¥2,191 million to ¥5,104 million, advance payments to suppliers rose ¥1,525 million to ¥4,445 million and real estate held for sale rose ¥296 million to ¥2,673 million, while cash fell ¥145 million to ¥1,882 million. Fixed assets barely moved, up ¥46 million to ¥3,269 million, and inside that total tangible assets, intangibles and investment securities all declined; the only material increase is ¥100 million of deferred tax assets. For a developer that builds projects and sells them, this is a quarter spent assembling the next several quarters' revenue rather than harvesting this one's.

The build-out is debt-funded. Short-term borrowings rose ¥3,438 million to ¥4,581 million, four times the ¥1,143 million outstanding at the April year-end, and advances received from customers rose ¥560 million to ¥3,551 million while trade payables added ¥189 million. Current liabilities rose ¥4,048 million to ¥10,964 million; long-term liabilities fell ¥109 million as long-term borrowings were repaid down ¥77 million and bonds down ¥30 million. Net assets rose only ¥136 million, to ¥5,830 million, so the equity ratio fell 6.0 points to 28.3% from 34.3%. Two items moved shareholders' equity in opposite directions: retained earnings absorbed the quarter's profit but paid out ¥61,835 thousand of dividends, and capital surplus fell ¥82,700 thousand on an additional purchase of subsidiary shares — the same transaction that removed the ¥9,350 thousand of non-controlling interests from the balance sheet. No quarterly cash flow statement was prepared, so the movement has to be read off the balance sheet; the notes disclose depreciation of ¥46,987 thousand against ¥24,598 thousand and goodwill amortisation of ¥20,104 thousand against ¥24,883 thousand.

A ¥2 million acquisition that came with negative net assets

On June 30, 2026 the company signed and completed the purchase of 100% of the equity of Godo Kaisha CC (合同会社CC) for ¥2,000 thousand in cash, the only change to the scope of consolidation this quarter, and just one month of the vehicle's results — July 2026 — is included. It came with ¥20,134 thousand of assets against ¥28,992 thousand of liabilities, so the price bought a negative net asset position and the deal produced ¥10,857 thousand of goodwill, to be amortised in equal instalments over five years. The filing is worth reading twice on what was bought: it describes the target's business as the operation of a grid-scale storage battery site, while giving the reason for the deal as the expansion of renewable generation through the acquisition of a solar power plant, structured as the purchase of the entity that owns it. The pro-forma effect had the combination been completed at the start of the year is described as immaterial and is not disclosed.

Guidance raised the same day; the dividend needs the split

The tanshin flags a revision to previously announced guidance and refers readers to a separate release issued the same day, a Notice of Upward Revision of Earnings Forecast. The revised full-year FY4/2027 figures are revenue of ¥21,500 million (+17.1%), operating profit of ¥1,740 million (+46.0%), ordinary profit of ¥1,550 million (+50.5%) and net profit attributable to owners of ¥960 million (+91.9%), for earnings per share of ¥77.63. A first-half cumulative forecast is given as well: revenue of ¥10,000 million (+39.2%), operating profit of ¥800 million (+162.9%), ordinary profit of ¥710 million (+192.8%) and net profit of ¥440 million (+190.4%). The tanshin does not print the superseded numbers, so the size of the upgrade cannot be read from this document. What can be read is the run-rate: dividing the quarter into the guidance gives revenue at 22.2% of the full year and 47.7% of the half, and operating profit at 29.3% of the full year and 63.8% of the half.

The dividend forecast was not revised, and the two years in the dividend table cannot be compared as printed. A three-for-one stock split took effect on May 1, 2026, the first day of this fiscal year, and the filing states that the FY4/2026 line shows the actual pre-split amount. That year paid ¥15.00 per share, all of it at the year-end; FY4/2027 is forecast at ¥6.00, again all at the year-end. Multiplied by the split ratio the forecast is the equivalent of ¥18.00 on the old share count, so it is a 20% increase, not a 60% cut. The same split is why the prior-year loss per share is restated to ¥0.83 and why the weighted average share count of 12,367,095 is comparable with the prior year's 12,341,281; 12,857,400 shares are issued, of which 490,305 are held in treasury. Two further things a reader should know: the group reports as a single segment and gives no segment table for either period, so the clean-energy, housing and real-estate and storage-battery activities the management discussion describes cannot be sized separately from this filing; and the quarterly statements have not been reviewed by an accounting auditor, while the filing reports no material subsequent events.

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.