TAKAOKA TOKO (6617): FY2025 Results Summary — Record Operating and Ordinary Profit on Extra-High Voltage Substation Projects

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TAKAOKA TOKO CO., LTD. (TSE Prime, 6617) announced its FY2025 (fiscal year ended March 31, 2026) results in the “FY2025 (Fiscal year ended March 31, 2026) Supplementary Materials for Financial Results,” dated April 28, 2026. Consolidated net sales increased to 112,093 million yen (up 5.1% year on year), and the company achieved its highest-ever consolidated operating profit and ordinary profit, with operating profit of 9,763 million yen (up 60.2% year on year). Note: the supplementary materials were partially corrected on April 30, 2026 (the orders received table on page 13); this article is based on the corrected full text attached to the correction notice.

Consolidated Results (Full-Year Actual)

Regarding consolidated net sales, although sales in the Metering Business and the Applied Optics Inspection System Business decreased, consolidated net sales increased to 112,093 million yen (up 5.1% year on year), reflecting growth in extra-high voltage substation plant projects in the Electric Equipment Business as well as PPP/PFI projects in the GX Solution Business. On the profit front, operating profit increased to 9,763 million yen (up 60.2%), ordinary profit to 10,084 million yen (up 60.0%), and profit attributable to owners of parent to 6,602 million yen (up 72.7%), resulting in higher profits across all profit levels. Net sales related to TEPCO Power Grid Inc. were 43,862 million yen, or 39.1% of net sales. Figures in the tables below are in millions of yen unless otherwise noted.

Item	FY2025 Actual (A)	FY2024 Actual (B)	Increase (Decrease) (A)-(B)	YoY
Net sales*	112,093	106,624	+5,469	+5.1%
Operating profit	9,763	6,094	+3,668	+60.2%
Ordinary profit	10,084	6,302	+3,782	+60.0%
Profit attributable to owners of parent	6,602	3,824	+2,778	+72.7%
*Of which, net sales related to TEPCO Power Grid Inc.	43,862	44,969	(1,107)	(2.5%)
Net sales composition of TEPCO Power Grid Inc.	39.1%	42.2%	(3.0%)	(7.2%)
Orders received	115,071	106,311	+8,759	+8.2%

Compared with the previous forecast (announced January 30, 2026), net sales exceeded the forecast of 112,000 million yen by 93 million yen, as steady progress in the Electric Equipment Business more than offset a decline in shipments of second-generation smart meters in the Metering Business. Operating profit exceeded the forecast of 8,300 million yen by 1,463 million yen, helped by high-margin maintenance and service projects for extra-high voltage substation equipment, a delay in the commencement of depreciation expenses due to the postponed launch of the second-generation smart meter production line, and cost improvements in EMS in the GX Solution Business.

Segment Results

By segment, net sales in the Electric Equipment Business rose 6.7% to 63,864 million yen on increased extra-high voltage substation plant projects for social infrastructure and power utilities, and segment profit rose 54.5% to 9,595 million yen, also helped by positive price effects. The Metering Business posted net sales of 33,212 million yen (down 0.1%), as growth from the Smart meters Assembly Center (SMAC) business and instrument transformers was offset by declines in electricity meter replacement work and Toko Electric (Suzhou) Co., Ltd.; segment profit rose 4.9% to 4,591 million yen, aided by a decrease in R&D expenses. The GX Solution Business increased net sales 17.2% to 12,370 million yen on PPP/PFI projects and returned to profitability with segment profit of 493 million yen (versus a loss of 206 million yen in FY2024). The Applied Optics Inspection System Business saw net sales decline 15.8% to 1,666 million yen on lower sales of 3D inspection systems. (In millions of yen)

Segment	Net Sales FY2025	Net Sales FY2024	Operating Profit FY2025	Operating Profit FY2024
Electric Equipment Business	63,864	59,878	9,595	6,210
Metering Business	33,212	33,234	4,591	4,378
GX Solution Business	12,370	10,553	493	(206)
Applied Optics Inspection System Business	1,666	1,979	97	238
Other (real estate leasing)	979	978	622	633
Total	112,093	106,624	15,400	11,254
Corporate expenses, etc. (incl. consolidated adjustments)	–	–	(5,637)	(5,160)
Operating profit	–	–	9,763	6,094

FY2026 Forecast

For FY2026, the company forecasts net sales of 115,000 million yen (up 2.6% year on year), operating profit of 10,000 million yen (up 2.4%), ordinary profit of 10,100 million yen (up 0.2%), and profit attributable to owners of parent of 10,000 million yen (up 51.5%). Orders received are forecast at 119,300 million yen (up 3.7%). In the extra-high voltage substation equipment field of the Electric Equipment Business, the company expects increased revenue and profit against the backdrop of replacement demand for power networks and expanding energy infrastructure investment, including demand for power reception and substation equipment for battery storage facilities. In the smart meter field of the Metering Business, after a temporary decline in shipments as second-generation smart meters began to be introduced sequentially by power utilities from mid-fiscal year 2025, the company expects a recovery in sales from fiscal year 2026 onward, alongside the full-scale operation of the SMAC business. By segment, FY2026 net sales are forecast at 65,700 million yen for Electric Equipment (up 2.9%), 35,400 million yen for Metering (up 6.6%), 11,900 million yen for GX Solution (down 3.8%), 1,400 million yen for Applied Optics Inspection System (down 16.0%), and 600 million yen for Other (real estate leasing). (In millions of yen)

Item	FY2026 Forecast (A)	FY2025 Actual (B)	Increase (A)-(B)	YoY
Net sales*	115,000	112,093	+2,907	+2.6%
Operating profit	10,000	9,763	+237	+2.4%
Ordinary profit	10,100	10,084	+16	+0.2%
Profit attributable to owners of parent	10,000	6,602	+3,398	+51.5%
*Of which, net sales related to TEPCO Power Grid Inc.	47,400	43,862	+3,538	+8.1%
Net sales composition of TEPCO Power Grid Inc.	41.2%	39.1%	+2.1%	+5.4%
Orders received	119,300	115,071	+4,229	+3.7%

Shareholder Returns

The company determines the amount of dividends based primarily on a performance-linked approach in accordance with its dividend policy, with a target consolidated dividend payout ratio of 30%. For FY2025, business performance exceeded the previous forecast. Although the results include gains from the sale of land, the company excluded such non-recurring factors in calculating the year-end dividend in accordance with its dividend policy. As a result, the year-end dividend was increased by 25 yen per share from the previously announced forecast to 83 yen per share, bringing the annual dividend to 120 yen per share, compared with 50 yen per share for the fiscal year ended March 31, 2025.

	Interim	Year-End	Full-Year
Previous Forecasts	37.00 yen	58.00 yen	95.00 yen
Actual Dividend Results of the Fiscal Year Ended March 31, 2026	37.00 yen	83.00 yen	120.00 yen
Reference: Results of the Fiscal Year Ended March 31, 2025	25.00 yen	25.00 yen	50.00 yen

Orders Received and Order Backlog

Orders received are disclosed separately from net sales. In FY2025, total orders received were 115,071 million yen (up 8.2% year on year), against 119,000 million yen in the previous forecast. In the Electric Equipment Business, inquiries for power reception and substation equipment for social infrastructure remained strong, and orders reached a high level of 67.9 billion yen, driven by large-scale projects related to gas-insulated switchgear for power utilities and battery storage facilities, although some large-scale projects were postponed to fiscal year 2026 due to prolonged specification adjustments. In the Metering Business, orders reached 34.5 billion yen, exceeding the plan, as orders for transformers remained solid despite lower shipments of second-generation smart meters. In the GX Solution Business, orders totaled 10.5 billion yen, falling short of the plan due to project postponements and unsuccessful bids in the PPP/PFI field. In the Applied Optics Inspection System business, conditions remained severe, but the company secured orders for Taiwan. The order backlog stood at 76,754 million yen as of March 31, 2026 (up 2,978 million yen from a year earlier), with a forecast of 81,054 million yen for March 31, 2027. The table below reflects the correction announced on April 30, 2026. (In millions of yen)

Segment	Orders FY2025 Actual (A)	Orders FY2024 Actual (B)	Change (A-B)	Orders FY2026 Forecast	Order Backlog (March 31, 2026)
Electric Equipment	67,880	58,274	+9,605	68,800	67,458
Metering	34,524	34,377	+146	35,400	5,960
GX Solution	10,454	11,397	(943)	11,900	2,437
Applied Optics Inspection System	1,233	1,283	(49)	2,600	898
Other (Real estate leasing)	979	978	+0	600	0
Total	115,071	106,311	+8,759	119,300	76,754

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