Takachiho Koheki (2676): FY2025 Results Summary — Record Operating and Ordinary Profit Since Listing on Business Security Strength

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Takachiho Koheki labels this fiscal year “FY3/26” (the fiscal year ended March 31, 2026); this site classifies the most recent completed fiscal year as FY2025, and all labels in the text, tables and segment data below follow the company’s own presentation.

Takachiho Koheki Co., Ltd. (TSE Prime, code 2676) reported net sales of 29,510 million yen for FY3/26, up 5.0% year on year, with operating profit of 2,098 million yen (+0.9%) and ordinary profit of 2,408 million yen (+20.1%). The company states that operating profit and ordinary profit achieved their highest earnings since listing, driven by strong performance in Business Security. Profit attributable to owners of parent declined 2.9% to 1,415 million yen, mainly due to a loss on valuation of investment securities. For FY3/27 the company plans net sales of 32,000 million yen and operating profit of 2,350 million yen, and an annual dividend of 76.0 yen per share under a newly adopted progressive dividend policy.

Consolidated Results (Full-Year Actual)

Net sales rose 5.0% year on year and gross profit on sales increased 6.9% to 7,383 million yen, lifting the gross profit ratio by 0.4pt to 25.0%. Selling, general and administrative expenses grew 9.4% to 5,285 million yen, so operating profit rose only 0.9%. Ordinary profit jumped 20.1% as the company booked foreign exchange gains of 116 million yen in FY3/26 against foreign exchange losses of 84 million yen in FY3/25. Against the revised plan announced on March 19, net sales came in 1.6% below and operating profit 4.6% below, while ordinary profit exceeded the revised plan by 0.4% and profit attributable to owners of parent by 1.1%. Figures are in millions of yen unless otherwise noted.

Item	FY3/26 Results	FY3/25 Results	Year-on-Year
Net Sales	29,510	28,098	+5.0%
Gross profit on sales	7,383	6,909	+6.9%
Gross profit ratio	25.0%	24.6%	+0.4pt
Selling, general and administrative expenses	5,285	4,830	+9.4%
Operating profit	2,098	2,079	+0.9%
Operating profit ratio	7.1%	7.4%	(0.3pt)
Foreign exchange gains	116	–	–
Foreign exchange losses	–	84	–
Ordinary profit	2,408	2,004	+20.1%
Ordinary profit ratio	8.2%	7.1%	+1.1pt
Profit before tax	2,133	2,170	(1.7%)
Profit attributable to owners of parent	1,415	1,458	(2.9%)
ROE	8.2%	8.7%	(0.5pt)
EPS	75.88 yen	79.10 yen	(3.22 yen)

EPS for the fiscal year ended March 2025 is stated after the two-for-one common stock split carried out on June 1, 2025.

Segment Results

Business Security posted higher sales and profit, with the segment operating profit ratio improving to 9.3%. Electromechanics saw sales and profit decline on sluggish electronics demand. Segment figures for the fiscal year ended March 2025 reflect the revised segment classification introduced from Q1 of FY3/26.

Segment	Metric	FY3/26 Results	FY3/25 Results	Change	Percentage change
Business Security	Net Sales	15,152	13,708	+1,443	+10.5%
Business Security	Operating profit	1,402	1,153	+249	+21.6%
Business Security	Operating profit ratio	9.3%	8.4%	+0.9pt	–
Electromechanics	Net Sales	14,358	14,389	(31)	(0.2%)
Electromechanics	Operating profit	695	926	(230)	(24.9%)
Electromechanics	Operating profit ratio	4.8%	6.4%	(1.6pt)	–
Consolidated Total	Net Sales	29,510	28,098	+1,412	+5.0%
Consolidated Total	Operating profit	2,098	2,079	+18	+0.9%
Consolidated Total	Operating profit ratio	7.1%	7.4%	(0.3pt)	–

Within Business Security, sub-segment net sales were Retail Solutions 4,251 million yen (YoY +3.0%), Business Solutions 5,455 million yen (YoY +15.0%), Global 3,627 million yen (YoY +23.3%) and Maintenance services 1,818 million yen (YoY ▲4.0%). The company cites strong sales of RFID systems and surveillance camera systems for apparel in Retail Solutions, access control systems for data centers and offices plus strong surveillance camera sales in Business Solutions, and large-scale fire protection system projects and office security in Thailand in Global. Maintenance declined because maintenance services were terminated following the end of manufacturer support for some products.

Within Electromechanics, Electronics net sales were 9,127 million yen (YoY ▲0.9%) and Mechanics net sales 5,231 million yen (YoY +1.1%). Electronics sales for automotive equipment fell in reaction to strong performance in the previous fiscal year and module sales were weaker, while Mechanics benefited from strong sales of planned and developed products for kitchens in housing equipment. Segment operating profit fell on higher purchasing costs resulting from the weaker yen and higher SG&A expenses from growth investments such as an increase in sales personnel.

Subscription Business

Subscription business net sales in Business Security reached 2,726 million yen (YoY +8.1%), comprising Maintenance 1,241 million yen (YoY ▲2.1%), Managed services 696 million yen (YoY +16.2%) and Cloud licenses 788 million yen (YoY +20.7%). The subscription sales ratio (share of Business Security segment sales) was 18.0%, against a KPI of 19.0% or higher. The subscription business operating profit margin was 19.9%, against a KPI of 23.0% or higher; the company attributes the decrease to the discontinuation of higher-margin maintenance services following the termination of manufacturer support.

Forecast for the Fiscal Year Ending March 31, 2027

The company plans higher sales and profit in both segments. SG&A expenses are expected to increase on growth investment, efforts to raise corporate awareness, and advertising measures such as product promotions. Operating profit and profit attributable to owners of parent are planned to reach new highs since listing, while ordinary profit is planned to decline because of the absence of the foreign exchange gains recorded in FY3/26.

Item	FY3/27 Plan	FY3/26 Results	Change	Year-on-Year
Net Sales	32,000	29,510	+2,489	+8.4%
Gross profit on sales	8,300	7,383	+916	+12.4%
Gross profit ratio	25.9%	25.0%	–	+0.9pt
Selling, general and administrative expenses	5,950	5,285	+664	+12.6%
Operating profit	2,350	2,098	+251	+12.0%
Operating profit ratio	7.3%	7.1%	–	+0.2pt
Ordinary profit	2,300	2,408	(108)	(4.5%)
Ordinary profit ratio	7.2%	8.2%	–	(1.0pt)
Profit attributable to owners of parent	1,650	1,415	+234	+16.6%
ROE	9.3%	8.2%	–	+1.1pt
EPS	88.33 yen	75.88 yen	+12.45 yen	–
Annual dividend per share	76.0 yen	76.0 yen	+0.0 yen	–

By segment, the FY3/27 plan calls for Business Security net sales of 16,490 million yen (+1,337 million yen, +8.8%) and operating profit of 1,580 million yen (+177 million yen, +12.6%), and Electromechanics net sales of 15,510 million yen (+1,151 million yen, +8.0%) and operating profit of 770 million yen (+74 million yen, +10.7%). Drivers cited for Business Security include wider adoption of RFID systems for apparel, expansion of security systems for data centers and foreign company offices, and growth of the subscription business; for Electromechanics, the commencement of handling optical-related products and increased demand for industrial equipment used in semiconductor manufacturing.

Shareholder Returns

Under the capital policy of “balancing investment for growth and shareholder returns,” the company applied a 100% dividend payout ratio for FY3/26 and will adopt a progressive dividend policy from FY3/27 onward. The annual dividend for FY3/26 is 76.0 yen per share, down 4 yen from the previous fiscal year because of the decrease in profit. The annual dividend for FY3/27 is expected to be 76.0 yen, unchanged from the previous fiscal year, reflecting the progressive dividend. Dividends for FY3/25 are stated after the two-for-one stock split of June 1, 2025.

Item	FY3/25	FY3/26	FY3/27 (Plan)
Annual dividend per share	80.0 yen	76.0 yen	76.0 yen
Dividend policy	–	Dividend payout ratio 100%	Progressive dividend

Medium-Term Management Plan 2025-2027 and Topics

The Medium-Term Management Plan 2025-2027 targets, for FY3/28, net sales of 35.0 billion yen, operating profit of 3.0 billion yen, ordinary profit of 2.8 billion yen and ROE of 10% or higher, against FY3/25 results of net sales 28.0 billion yen, operating profit 2.0 billion yen, ordinary profit 2.0 billion yen and ROE 8.7%. Medium- to long-term targets for 2030 are net sales of 50.0 billion yen, an operating profit margin of 10% or higher and ROE of 13% or higher.

The plan provides for 6.0 billion yen of growth investment, broken down into business investment of 4.80 billion yen (M&A, investment in business growth, VC investment), DX promotion of 0.70 billion yen (core system renewal, incorporation of AI) and strengthening human capital of 0.50 billion yen (hiring, salary increases, training). Progress cited includes a 6% base salary plus benefits increase in FY3/26 and a planned 5% increase in FY3/27, with training expenses expected to be approximately 100 million yen in FY3/27.

Topics highlighted include “halcyon,” an anti-ransomware platform launched in June 2025 as the first such service provided in Japan, where the company has received multiple orders including a large-scale project involving 10,000 licenses and aims for adoption by 100 companies involving 100,000 licenses within a few years; the start of an optical solution business in Electromechanics targeting communications, industrial and sensing markets; and data center demand, where the company reports that over 60% of the orders assumed in the final fiscal year of the medium-term plan have already been received. In the loyal customer strategy, Platinum and Loyal Customers rose to 145 companies in FY3/26 from 124 in FY3/25 against a plan of 140, and the number of cross-sales rose to 83 companies from 68 against a plan of 80, while average sales per customer was 18 million yen against a plan of 20 million yen.

Balance Sheet, Orders and Market Valuation

As of March 31, 2026, cash and deposits were 7,349 million yen, trade receivables 8,054 million yen, inventories 3,593 million yen, other current assets 1,956 million yen and non-current assets 4,743 million yen; trade payables were 3,351 million yen, other liabilities 4,752 million yen and net assets 17,594 million yen. Net assets increased by 759 million yen, reflecting dividends paid of (1,600) million yen, net income of +1,415 million yen, accumulated other comprehensive income of +896 million yen and treasury stock of +47 million yen. Consolidated orders received totaled 30,533 million yen in FY3/26 against 27,884 million yen in FY3/25, and the order backlog was 11,526 million yen against 10,503 million yen.

The company states that its WACC is currently estimated to be 6% to 7% and that it targets ROE of over 10% under the Medium-Term Management Plan. As of March 31, 2026 the share price was 2,020 yen, ROE 8.2%, PBR 2.14x and PER 26.62x, compared with 1,960 yen, 8.7%, 2.17x and 24.78x as of March 31, 2025 (share prices from March 31, 2022 to March 31, 2025 are adjusted for the two-for-one stock split of June 1, 2025). The company had 532 consolidated employees and 319 non-consolidated employees as of March 31, 2026, including temporary employees.

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.