Toho Gas Co (9533) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026 declined 10.3% year-over-year to ¥144.8 billion, with operating income down 61.5% to ¥7.6 billion and net income attributable to owners down 43.3% to ¥9.4 billion.

• Comprehensive income surged 153.6% to ¥29,117 million, driven by gains in available-for-sale securities.

• Customer accounts grew 1.0% year-over-year, led by electricity (+2.1%) and LPG (+1.2%), despite lower sales volumes across city gas, LPG, and electricity due to high temperatures and reduced demand.

Financial highlights

• Gross profit fell to ¥40,415 million from ¥52,482 million year-over-year.

• Ordinary income dropped 52.0% to ¥10,573 million.

• Net income per share was ¥26.19, reflecting a four-for-one stock split.

• Total assets increased to ¥833,021 million from ¥809,459 million at the previous fiscal year-end.

• Crude oil prices and exchange rates increased significantly year-over-year, impacting cost structures.

Outlook and guidance

• FY2026 full-year forecast projects net sales of ¥670.0 billion (+2.9%), but operating income is expected to decline 40.2% to ¥19.0 billion and net income to fall 26.9% to ¥23.0 billion.

• Net income per share guidance is ¥64.24.

• Customer growth is expected to continue, especially in electricity (+3.1%).

• ROE is forecast at 4.8%, down from 6.8% in FY2025.