TANAKEN (1450) Q4 2026 earnings summary

Executive summary

• Revenue increased 20.6% year-over-year to ¥14,820 million, driven by robust demand in the demolition sector and successful acquisition of large-scale projects, surpassing mid-term management plan targets.

• Operating profit was ¥2,185 million (14.7% margin), exceeding plan by ¥485 million but declining 6.1% year-over-year; net income was ¥1,502 million, up ¥302 million from plan but down 4.7% year-over-year, with all profit metrics meeting internal targets.

• Strengthened workforce through enhanced recruitment and branding, resulting in a net increase in construction personnel.

• Completed the final year of the mid-term plan, focusing on brand value, workforce, and alliances, and is transitioning to a new three-year growth strategy.

• Maintained a strong financial position with a high equity ratio and no interest-bearing debt, despite increased cash outflows from higher project orders.

Financial highlights

• Revenue for FY2026/3 reached ¥14,820 million, up ¥2,534 million year-over-year.

• Operating margin was 14.7%, down from 19.0% the previous year.

• Net assets rose to ¥9,325 million, up ¥1,102 million from the prior year, mainly due to retained earnings and valuation gains.

• Cash and equivalents at year-end were ¥2,798 million, down ¥1,137 million year-over-year.

• Dividend per share set at ¥55, with a payout ratio of 31.9%.

Outlook and guidance

• FY2027/3 revenue projected at ¥16,000 million (+8.0% YoY), with operating profit of ¥2,100 million (down 3.9%) and net income of ¥1,400 million (down 6.8%).

• Focus on further strengthening recruitment, training, and construction capabilities to support continued growth and brand value.

• Dividend guidance for the next fiscal year remains at ¥55 per share.

• Long-term targets for FY2029/3: revenue ¥20,000 million, operating profit ¥2,600 million, ROE over 15%, and payout ratio above 30%.