Totetsu Kogyo (1835) Q4 2026 earnings summary

Executive summary

• FY26 revenue rose 1.9% to ¥163,018 million; operating income increased 13.4% to ¥17,601 million and net income attributable to owners of parent rose 11.1% to ¥12,845 million, with operating and net income at record highs for a second consecutive year.

• Orders received declined 2.7% to ¥145,360 million, but exceeded plan by 4.3%; gross profit increased 13.8% to ¥28,080 million, up ¥3,413 million.

• JR East price revisions, productivity gains and civil engineering work supported growth; the five-year management plan prioritizes safety, productivity, human resources and ESG.

Financial highlights

• Gross margin rose to 17.2% from 15.4%; operating margin increased to 10.8% from 9.7%.

• Ordinary income was ¥18,220 million, up 13.6%; net income margin was 7.9%, versus 7.2% in FY25.

• Comprehensive income rose 45.5% to ¥18,531 million; ROE was 10.2% and the equity-to-asset ratio was 65.1%.

• Cash and cash equivalents increased ¥4,860 million to ¥20,574 million; operating, investing and financing cash flows were ¥5,241 million, −¥4,899 million and ¥4,517 million, respectively.

• EPS was ¥372.99, versus ¥335.87; net assets per share were ¥3,851.87, versus ¥3,473.85.

Outlook and guidance

• FY27 order target is ¥153,000 million, up 5.3%; revenue target is ¥167,000 million, up 2.4%, setting a record target.

• FY27 operating income target is ¥18,000 million, up 2.3%; ordinary income ¥18,500 million, up 1.5%; net income attributable to owners of parent ¥13,000 million, up 1.2%.

• Gross margin is planned at 17.4%, versus 17.2% in FY26; operating margin is planned at 10.8%, unchanged year over year.

• Strong railway maintenance and project demand, backlog progress, and opportunities in safety, disaster prevention and infrastructure life extension support the outlook.

• Higher personnel and head-office relocation costs are expected; productivity gains and selective profitable work are intended to support another record profit.