Totech (9960) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales and profits in H1 FY3/26, with net sales up 14.8% YoY to ¥78.4bn and operating profit up 24.4% YoY to ¥7.2bn, driven by robust demand from redevelopment, private-sector investments, and public-sector projects.

• All three core business areas—HVAC, instrumentation, and energy—posted double-digit sales growth year-over-year, with both product sales and construction segments achieving double-digit growth in net sales and gross profit.

• Comprehensive income increased 65.3% YoY to ¥8,081 million, reflecting strong business performance and valuation gains on securities.

• Upward revision to full-year forecasts and medium-term management plan targets following strong Q2 results.

Financial highlights

• Q2 FY3/26 net sales rose 14.8% YoY to ¥78.4bn; operating profit up 24.4% YoY to ¥7.2bn; ordinary profit at ¥7.7bn; profit attributable to owners of parent at ¥5.2bn.

• Gross profit rose 15.9% YoY to ¥21,731 million, with margin improving to 27.7% (+0.3ppt YoY), mainly due to Construction business margin gains.

• Both net sales and operating profit reached record highs on a quarterly basis.

• Basic earnings per share for the period were ¥126.75, up from ¥110.14 a year earlier.

• Product Sales business net sales up 15.1% YoY; Construction business net sales up 14.5% YoY.

Outlook and guidance

• Full-year FY3/26 net sales forecast revised up to ¥166bn (+6.4% YoY); operating profit to ¥16bn (+8.9% YoY); ordinary profit to ¥16.8bn (+7.9% YoY); profit attributable to owners of parent to ¥12bn (+7.2% YoY).

• Annual dividend forecast raised to ¥117 per share, payout ratio at 40%.

• Medium-term management plan targets revised upward: net sales ¥166bn, ordinary profit ¥16.8bn for FY3/26.