Taihei Dengyo Kaisha (1968): FY2025 Results Summary — Orders Received Up 28.1% on Power Plant Demand

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TAIHEI DENGYO KAISHA, LTD. (Securities Code: 1968) reported net sales of 141,657 million yen for FY2025, the fiscal year ended March 31, 2026, up 12.7% from FY2024, with operating profit of 14,839 million yen (up 13.8%) and profit attributable to owners of parent of 11,902 million yen (up 22.0%). Orders received reached 196,992 million yen, an increase of 28.1% from FY2024 and 113.2% of the company’s full-year forecast. The plant construction and maintenance contractor also announced a new Mid-Term Business Plan covering FY2026 to FY2028.

Consolidated Results (Full-Year Actual)

Net sales came in at 99.1% of the full-year forecast, while ordinary profit and profit attributable to owners of parent both exceeded the forecast, at 102.8% and 112.3% of plan respectively. Operating profit reached 98.9% of the forecast. Orders received were the standout item, exceeding the forecast by a wide margin at 113.2%.

Item (In millions of yen)	Actual results for FY2025	Full-year forecast for FY2025	Achievement rate	FY2024 (Reference value)	Change from FY2024 (Reference)
Orders received	196,992	174,000	113.2%	153,773	28.1%
Net sales	141,657	143,000	99.1%	125,670	12.7%
Operating profit	14,839	15,000	98.9%	13,037	13.8%
Ordinary profit	16,246	15,800	102.8%	13,808	17.7%
Profit attributable to owners of parent	11,902	10,600	112.3%	9,753	22.0%

Segment Results

The company reports two segments, Construction and Maintenance. Maintenance remains the larger business, with net sales of 97,125 million yen and operating profit of 12,815 million yen. Construction net sales rose 13.7% to 44,531 million yen, and its operating profit rose 224.9% to 2,024 million yen. Operating profit by segment is stated after total company expenses have been allocated to each segment.

Segment (In millions of yen)	Net sales: Actual results for FY2025	Net sales: FY2024 (Reference value)	Net sales: Change from FY2024	Operating profit: Actual results for FY2025	Operating profit: FY2024 (Reference value)	Operating profit: Change from FY2024
Construction Segment	44,531	39,152	13.7%	2,024	623	224.9%
Maintenance Segment	97,125	86,518	12.3%	12,815	12,414	3.2%
Total	141,657	125,670	12.7%	14,839	13,037	13.8%

Orders Received and Back Orders

On a cumulative basis, FY2025 orders received of 196,992 million yen consisted of 89,865 million yen in Construction and 107,127 million yen in Maintenance, against FY2024 cumulative orders of 153,773 million yen (Construction 54,231 million yen, Maintenance 99,542 million yen). Back orders at the end of FY2025 stood at 181,113 million yen, comprising Construction of 111,081 million yen and Maintenance of 70,032 million yen, versus 125,778 million yen at the end of FY2024.

Next-Year Forecast

For FY2026, the company forecasts net sales of 160,000 million yen (up 12.9%), operating profit of 17,400 million yen (up 17.3%) and ordinary profit of 18,400 million yen (up 13.3%). Profit attributable to owners of parent is forecast at 12,000 million yen, an increase of 0.8%. Orders received are forecast at 179,700 million yen, a decrease of 17,292 million yen or 8.8% from the FY2025 level.

Item (In millions of yen)	Actual results for FY2025	Full-year forecast for FY2026	Change amount	Change from FY2025 (Reference)
Orders received	196,992	179,700	-17,292	-8.8%
Net sales	141,657	160,000	18,343	12.9%
Operating profit	14,839	17,400	2,561	17.3%
Ordinary profit	16,246	18,400	2,154	13.3%
Profit attributable to owners of parent	11,902	12,000	98	0.8%

Shareholder Returns

Starting in FY2024, the company revised its shareholder return policy, adopting a minimum dividend on equity (DOE) ratio of 3% and setting a dividend payout ratio target of 35%. Its basic policy is to provide stable dividends continuously from a long-term perspective while aiming to expand shareholder returns in line with corporate value growth. Dividend per share for FY2025 was 70 yen against net income per share of 188 yen, a payout ratio of 37.1% and a DOE of 3.7%. The FY2026 estimate is a dividend per share of 75 yen on net income per share of 190 yen, for a payout ratio of 39.4%. The company conducted a 3-for-1 share split of its common shares, effective October 1, 2025, and the per-share figures reflect the effect of the share split, with amounts rounded down to the nearest whole unit.

Item (Yen / %)	FY2024	FY2025	FY2026 (Estimate)
Net income per share (yen)	160	188	190
Dividend per share (yen)	58	70	75
Payout ratio	This cannot be confirmed from the materials.	37.1%	39.4%
DOE	This cannot be confirmed from the materials.	3.7%	This cannot be confirmed from the materials.

Capital Efficiency and Corporate Value

Return on equity (ROE) has remained above 9% since FY2021, reaching 9.9% in FY2025. The PBR rose to 1.52x at the end of FY2025 due to various ongoing initiatives, although it had been below 1.0x at the end of FY2024. The company recognizes its cost of equity capital to be 8-9%, based on profit margins and investor feedback, and targets an ROE of 9.5% or more under the new Mid-Term Business Plan. It also aims to reduce its policy shareholding ratio from the current 16.4% to less than 10% of consolidated net assets by FY2030. Dialogs with shareholders and investors rose to 143 cases, from 105 in the prior period.

Mid-Term Business Plan and Topics

The new Mid-Term Business Plan covering FY2026 to FY2028 sets management targets of net sales of 180.0 billion yen or more and an ROE of 9.5% or more for FY2028, stepping toward FY2030 targets of net sales of 200.0 billion yen or more and an ROE of 10.0% or more. The prior FY2022-FY2025 plan targeted net sales of 150.0 billion yen and delivered a result of 141.6 billion yen. Under the capital allocation plan for FY2026-FY2028, sources of funds comprise cash and cash equivalents of 35.0 billion yen and operating cash flow of 35.0 billion yen, with a breakdown of 30.0 billion yen for funds required for business operations, 10.0 billion yen for capital investments such as construction machinery and equipment, 35.0 billion yen for strategic investments such as M&A, and shareholder returns.

In April 2026 the company completed the acquisition of all shares of TOEI ENGINEERING CO., LTD., a welding repair services provider for land-based plants such as electric power plants as well as for the marine vessel industry, founded in October 1972 with 90 employees in Japan as of March 31, 2026 and share capital of 30 million yen. The company also continues to develop green projects centered on biomass power generation, including the Seifu-Shinto Biomass Power Plant (7,100 kW), and to pursue nuclear restart-related work; of 35 nuclear power facilities under the compliance screening framework, the company has a track record at 30.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.