Toda (1860) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, rose 20.9% year-over-year to ¥460.2 billion, driven by higher sales in architectural construction and real estate sales in domestic and overseas businesses.

• Operating income surged 135.6% year-over-year to ¥28.3 billion, with gross profit up 42.4% due to improved profitability and increased real estate sales.

• Net income attributable to owners of parent doubled to ¥28.3 billion, up 101.5% year-over-year, aided by gains on sale of investment securities.

• The company is executing its Medium-Term Management Plan 2027, focusing on vertical and horizontal business expansion and targeting ROIC of 5%+ and ROE of 10%+.

Financial highlights

• Gross profit reached ¥66.7 billion, up 42.4% year-over-year; SG&A expenses increased 10.1% to ¥38.3 billion.

• Ordinary income was ¥33.0 billion, up 127.2% year-over-year, supported by dividend income and other non-operating gains.

• Basic EPS for the period was ¥94.37, compared to ¥46.59 in the prior year.

• Total assets increased to ¥1,008.4 billion, up 9.2% from March 31, 2025; net assets rose to ¥388.0 billion, with an equity ratio of 37.3%.

Outlook and guidance

• Full-year forecast for FY2025/26: net sales ¥630.0 billion (+7.4% YoY), operating profit ¥31.5 billion (+18.2%), ordinary profit ¥35.7 billion (+22.7%), net income attributable to owners of parent ¥29.0 billion (+15.1%), and basic EPS ¥96.62.

• Dividend forecast revised upward to ¥45.00 per share for FY2025/26.