Power-market work drives sales
Tokyo Energy & Systems Inc. (TSE: 1945) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 5, 2026. Sales rose on progress in removal and maintenance work at thermal power plants, safety upgrades at nuclear plants, new substation equipment, air-conditioning at public facilities, a waste-incineration plant renewal and solar farm construction. By market, power-utility sales rose 19.0% to ¥20,781 million, renewable-energy sales 55.9% to ¥7,970 million and general industry 4.2% to ¥12,195 million. The company credited the profit gain to higher sales, a focus on profitable orders and productivity improvements.
Power-market orders rose 37.7% to ¥26,728 million on new substation work, a liquefied-hydrogen supply-chain project and maintenance at refineries, but general-industry orders fell 39.0% and renewable-energy orders 67.3% as large contracts were deferred and public hydropower work declined. Net profit attributable to owners rose 27.2% to ¥1,894 million, helped by gains on sales of rental property and cross-held shares. The company said a former employee arrested in June over a public works tender in Ueno village, Gunma prefecture, was indicted in July, and that it will carry out the prevention measures recommended by a special investigation committee in October.
Guidance and dividend unchanged
The company kept its FY3/2027 forecast of net sales of ¥95,000 million (+14.3%), operating profit of ¥7,300 million (+54.1%), ordinary profit of ¥7,500 million and net profit attributable to owners of ¥5,200 million (+21.3%). It paid an interim dividend of ¥38, against ¥28, and plans ¥39 at year-end for an annual ¥77, up from ¥63. Total assets fell 5.9% to ¥112,265 million, and the equity ratio rose to 64.8%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 40,924 | 34,283 | +19.4% |
| Operating profit (¥ million) | 2,447 | 1,180 | +107.3% |
| Ordinary profit (¥ million) | 2,465 | 1,391 | +77.3% |
| Net profit attrib. to owners of parent (¥ million) | 1,894 | 1,489 | +27.2% |
| Comprehensive income (¥ million) | 1,379 | 2,680 | -48.5% |
| EPS (¥) | 57.15 | 44.69 | +27.9% |
| Orders received (¥ million) | 42,799 | 51,543 | -17.0% |
| Order backlog (¥ million) | 146,806 | 138,681 | +5.9% |
| Total assets (¥ million) | 112,265 | 119,329 | -5.9% |
| Net assets (¥ million) | 72,713 | 72,452 | +0.4% |
| Equity ratio | 64.8% | 60.7% | +4.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 95,000 | — | +14.3% |
| FY3/2027 guidance — operating profit (¥ million) | 7,300 | — | +54.1% |
| FY3/2027 guidance — ordinary profit (¥ million) | 7,500 | — | +35.9% |
| FY3/2027 guidance — net profit (¥ million) | 5,200 | — | +21.3% |
| Annual dividend per share (¥) | 77.00 | 63.00 | +22.2% |
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.