Takasago Thermal Engineering (1969) Q1 2026 earnings summary

Executive summary

• Achieved record highs in net sales, profit, and margin for Q1FY2025, driven by strong project progress, especially in large-scale industrial and construction projects.

• Sales orders increased by 4.2% year-over-year, with carry forward also at a record high, reflecting robust demand for redevelopment and renewal projects.

• Operating profit surged 433.1% to JPY 10,117M, ordinary profit up 274.8% to JPY 10,906M, and net profit increased 341.7% to JPY 8,956M.

Financial highlights

• Consolidated net sales rose 33.8% year-over-year to JPY 94,205M; non-consolidated net sales up 41.3% to JPY 70,655M.

• Gross profit margin improved to 21.1% (consolidated) and 23.7% (non-consolidated), with consolidated gross profit up 97.0%.

• Earnings per share for the quarter were JPY 135.96, up from JPY 30.55 in the prior year period.

• Comprehensive income reached JPY 9,906M, a 291.7% year-over-year increase.

• Total assets decreased to JPY 301,085M from JPY 334,949M at the previous fiscal year-end, mainly due to lower receivables and contract assets.

Outlook and guidance

• FY2025 targets new record highs: revenue of JPY 410,000M (+7.4%), operating profit of JPY 36,000M (+11.1%), and net profit of JPY 28,700M (+3.9%).

• Sales order forecast to grow 3.3% to JPY 430,000M, with strong pipelines in pharmaceutical and ICT sectors.

• Full-year EPS forecast is JPY 217.83, or JPY 435.66 excluding the impact of the planned share split.

• Shareholder return policy includes a 2-for-1 share split effective October 1, 2025, and increased dividends, with a payout ratio guideline of 40%.