Tokyo Century (8439 ) Q1 2027 earnings summary

Executive summary

• Net income for Q1 FY2026 was ¥35.1 billion, up 59.1% year-over-year, with ROE at 12.3% (+3.5 pts), driven by gains in Transport and Global Business segments.

• Revenues for the three months ended June 30, 2026 rose 11.7% to ¥388.4 billion, with gross profit up 19.5% to ¥92.3 billion.

• Operating income increased 31.1% to ¥46.3 billion, ordinary income rose 36.9% to ¥51.1 billion.

• Segment reorganization effective April 1, 2026, now reports six segments to enhance collaboration and synergies.

• Deconsolidation of ACG (shift to equity-method affiliate) and joint management with ITOCHU mark significant progress in business portfolio transformation.

Financial highlights

• Net income: ¥35.1 billion (+59.1% YoY); progress vs. forecast: 28.6%.

• Total assets: ¥7,437.5 billion as of June 30, 2026 (+¥222.7 billion from March 2026); net assets: ¥1,291.8 billion.

• Shareholders’ equity: ¥1,159.1 billion; equity ratio: 15.6%.

• Basic EPS for the quarter was ¥71.85, up from ¥45.25 a year earlier.

• Dividend forecast for FY2026 is ¥90 per share, up from ¥80 in FY2025.

Outlook and guidance

• Full-year net income forecast at ¥123 billion (+10.5% YoY), with basic EPS projected at ¥251.66.

• Estimated impact on net income from ACG share transfer: approx. ¥30 billion, subject to regulatory and FX factors.

• Segment assets expected to decrease by approx. ¥1.7 trillion by March 2027 due to ACG deconsolidation.

• Continued focus on capital-light strategies and investment in growth/strategic businesses.

• No revisions to previously announced forecasts.