TOHO (9602): FY2025 Results Summary — Record Revenue and Profit Driven by Blockbuster Films

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

Note: TOHO’s fiscal year ends at the end of February, and the company labels the year ended February 28, 2026 as “FY2/26”; this article classifies it as FY2025 in the title and slug in line with this site’s convention, while the labels used in the text, tables and segment data follow the source materials. For the fiscal year ended February 2026, TOHO reported operating revenue of ¥360.6B (+15.2% YoY), operating profit of ¥67.8B (+5.0% YoY) and net income (parent) of ¥51.7B (+19.4% YoY), all marking new record-high figures. The materials state that big hits of major titles in the Film business drove the consolidated results, while operating profit in the IP & Anime business declined significantly in 4Q due mainly to increased amortization of a game released in FY2/26 and one-off expenses associated with revaluation of contingent consideration. ROE was 10.4% and the year-end dividend was ¥13.5 per share (after a stock split).

Consolidated Results (Full-Year Actual)

The presentation states that the film business remained strong as a result of box office hits such as Demon Slayer, KOKUHO, Chainsaw Man – Reze Arc, and Exit 8, leading to higher revenue and profit. Operating costs rose 19.3% to 201,069 million yen, described as primarily an increase in variable costs due to box office success, while SG&A increased 14.8% to 91,704 million yen. Non-operating expenses fell 47.3% to 2,276 million yen, mainly due to improved performance of FIFTH SEASON and decreased amortization of goodwill. Extraordinary income rose 162.2% to 9,113 million yen, mainly due to increased sales of cross-shareholdings, and extraordinary losses rose 79.6% to 3,350 million yen, mainly due to the recording of demolition costs for non-current assets and a provision for loss under the Anti-Monopoly Act. On the summary page of the deck, ROE was 10.4% (FY2/25: 9.3%) and EPS was ¥61.20 (FY2/25: ¥50.95), with prior-year per-share figures calculated assuming the 1-for-5 stock split conducted with February 28, 2026 as the record date had already been conducted.

Item (millions of yen)	FY2/25	FY2/26	Change	Percentage change
Operating revenue	313,171	360,663	47,491	15.2%
Operating costs	168,611	201,069	32,458	19.3%
Gross profit	144,559	159,593	15,033	10.4%
SG&A	79,875	91,704	11,829	14.8%
Operating profit	64,684	67,889	3,204	5.0%
Non-operating income	4,088	4,528	440	10.8%
Non-operating expenses	4,317	2,276	-2,040	-47.3%
Ordinary profit	64,455	70,140	5,685	8.8%
Extraordinary income	3,475	9,113	5,637	162.2%
Extraordinary losses	1,865	3,350	1,485	79.6%
Profit attributable to owners of parent	43,357	51,768	8,411	19.4%

Segment Results

In the Film business, operating revenue rose 42,755 million yen to 182,617 million yen and operating profit rose 8,676 million yen to 37,302 million yen, with the materials citing hits such as Demon Slayer, KOKUHO, Chainsaw Man – Reze Arc, and Exit 8. Within the segment, the Production and Distribution business posted operating revenue of 64,368 million yen and operating profit of 18,731 million yen, the Movie Theater business 97,585 million yen and 16,579 million yen, and Other Film businesses 20,663 million yen and 1,991 million yen. The IP & Anime business grew operating revenue by 5,873 million yen to 75,265 million yen on contributions from GKIDS and Science SARU, but operating profit fell 4,942 million yen to 17,296 million yen and the operating profit margin declined 9.1 points to 23.0%, due mainly to increased amortization of goodwill, a rise in depreciation of games released in FY2/26 and the recording of one-off expenses.

The Theatrical business saw operating revenue decrease 580 million yen to 22,310 million yen and operating profit decrease 666 million yen to 3,463 million yen, compared with the previous year in which the Imperial Theatre’s closing lineup was performed and all seats were sold; the company maintained the number of its own hosted performances by utilizing Theatre Creation and other external venues during the temporary closure of the Imperial Theatre, and saw strong attendance for Knights’ Tale ARENA LIVE and Elisabeth. In the Real Estate business, operating revenue edged down 474 million yen to 79,179 million yen as orders for large-scale construction projects declined in the Road business, while operating profit rose 2,203 million yen to 19,030 million yen and the margin improved 2.9 points to 24.0%, reflecting the temporary expenses for the demolition of the TEIGEKI BLDG. recorded in the previous year. By sub-segment, Lease of Land and Buildings posted operating revenue of 37,779 million yen and operating profit of 12,881 million yen, Road 29,611 million yen and 4,863 million yen, and Building Maintenance 11,788 million yen and 1,284 million yen. Adjustments were -9,270 million yen as system maintenance and personnel expenses increased.

Segment	Metric	FY2/25	FY2/26	Change
Film business	Operating revenue	139,862	182,617	+42,755
Film business	Operating profit	28,626	37,302	+8,676
Film business	OP%	20.5%	20.4%	-0.0 Point
IP & Anime business	Operating revenue	69,391	75,265	+5,873
IP & Anime business	Operating profit	22,239	17,296	-4,942
IP & Anime business	OP%	32.0%	23.0%	-9.1 Point
Theatrical business	Operating revenue	22,890	22,310	-580
Theatrical business	Operating profit	4,129	3,463	-666
Theatrical business	OP%	18.0%	15.5%	-2.5 point
Real Estate business	Operating revenue	79,653	79,179	-474
Real Estate business	Operating profit	16,826	19,030	+2,203
Real Estate business	OP%	21.1%	24.0%	+2.9 point
Other business	Operating revenue	1,372	1,291	-81
Other business	Operating profit	162	66	-96
Other business	OP%	11.9%	5.2%	-6.7 point
Adjustments	Operating profit	-7,300	-9,270	-1,970
Total	Operating revenue	313,171	360,663	47,491
Total	Operating profit	64,684	67,889	3,204

FY2/27 Forecast (Initial)

For FY2/27 the company’s initial forecast is operating revenue of 345,000 million yen, operating profit of 62,000 million yen, ordinary profit of 67,000 million yen and profit attributable to owners of parent of 41,000 million yen. The deck describes the initial forecast as a growth baseline with no massive hits expected in the Film business, and states that by achieving big hits for each title the company aims to surpass the initial forecast. The initial forecast assumes box-office revenue of TOHO distribution films of ¥90.0–¥100.0 billion (including ODS (TOHO NEXT), excluding the overseas box-office revenue from GODZILLA MINUS ZERO) against ¥139.9 billion in FY2/26, and domestic box-office revenue of ¥250.0–¥260.0 billion against ¥274.4 billion for January to December 2025. The profit decline partly reflects an increase in SG&A expenses, including a projected ¥3.0–¥3.5 billion YoY increase to develop infrastructures for overseas operations. Ordinary profit assumes the share of profit or loss of entities accounted for using equity method will be on par with previous years, and only 2 billion yen in fixed asset demolition costs has been factored into extraordinary gains and losses.

Item (millions of yen)	FY2/26 (Results)	FY2/27 (Initial forecast)
Operating revenue	360,663	345,000
Operating profit	67,889	62,000
Ordinary profit	70,140	67,000
Profit attributable to owners of parent	51,768	41,000
Film business – operating revenue	182,617	165,800
IP & Anime business – operating revenue	75,265	84,100
Theatrical business – operating revenue	22,310	15,300
Real Estate business – operating revenue	79,179	75,700
Other business – operating revenue	1,291	4,100
Film business – operating profit	37,302	33,000
IP & Anime business – operating profit	17,296	22,000
Theatrical business – operating profit	3,463	2,000
Real Estate business – operating profit	19,030	18,000
Other business – operating profit	66	-1,000
Adjustments – operating profit	-9,270	-12,000

Shareholder Returns

The annual dividend for FY2/26 was ¥22.0 per share (interim ¥8.5, year-end ¥13.5), with a dividend payout ratio of 35.9% and a total dividend payout ratio of 64.7%; the total amount of dividends was ¥18.53 billion and share buybacks were ¥14.94 billion. The plan for FY2/27 is also an annual dividend of ¥22.0 per share. All per-share figures reflect the 1-for-5 stock split for common shares with February 28, 2026 as the record date, with figures for past fiscal years calculated assuming this stock split had already been conducted. On April 14 the company announced new buybacks and a cancellation of treasury shares to improve capital efficiency and enhance shareholder returns: it plans to acquire a total of 7.5 million shares of treasury stock for up to 13 billion yen, and of the treasury stock held, 30,000,000 shares (3.41% of the total number of shares issued) will be cancelled on April 30, 2026, after which the number of treasury shares will be 20,647,665 shares (2.43% of the total number of shares issued). TOHO also formulated a standard for treasury stock cancellation under which cancellation will be considered when treasury shares exceed 5% of total shares outstanding. Under TOHO Mid-Term Plan 2028, the policy is to achieve a dividend payout ratio of 35% or more with a minimum annual dividend of ¥17 per share and to implement flexible share buybacks.

Item	FY2/25	FY2/26	FY2/27 (Plan)
Dividend per share (yen)	17.0	22.0	22.0
Interim dividend per share (yen)	7.0	8.5	11.0
Year-end dividend per share (yen)	10.0	13.5	11.0
Dividend payout ratio (%)	33.4	35.9	—
Total dividend payout ratio (%)	79.6	64.7	—
Total amount of dividends (Billion yen)	14.46	18.53	—
Share Buybacks (Billion yen)	20.06	14.94	13.0

Medium-Term Plan and Topics

TOHO states an operating profit target of ¥75.0 to 100.0 billion for 2032, the centenary of its founding, and aims to more than double the operating profit of its IP & Anime business by 2032 from ¥22.2 billion yen in FY2/25, positioning that business as a new growth driver with the Real Estate and Theatrical businesses serving as a foundation. In the IP & Anime business, the operating profit margin was approximately 23% in FY2/26 (approximately 29% after adjusting for amortization of goodwill and intangible assets, the increase in depreciation of games released in FY2/26, and one-off expenses associated with revaluation of contingent consideration, which totalled approximately ¥4.3B), and approximately 26% is expected under the FY2/27 initial forecast. The company aims to achieve a 30% overseas sales ratio in 2032, plans to increase the number of employees for overseas operations from 174 as of February 28, 2026 to approximately 250 in 2027, and aims to accumulate the number of titles to reach approximately 20 cours in FY2/29.

In FY2/26, box-office revenue of TOHO distribution films (including ODS (TOHO NEXT)) was ¥139.9 billion, marking a new record high, with 20 films posting box-office revenue of over ¥1.0B, and 2025 Japan nationwide box-office revenue surpassed the pre-pandemic peak at ¥274.4B. TOHO distributed 44 titles in FY2/26 and 32 titles are slated for distribution in FY2/27, including GODZILLA MINUS ZERO, which the company will self-distribute overseas from November 2026, with GKIDS to distribute it in North America. Other topics disclosed include the establishment of an operating base in Europe and the acquisition of Anime Limited, the establishment of To-Smile, Inc. as a joint venture with Good Smile Company, Inc., the sale of 2 cross-shareholdings stocks, disclosure of the cost of equity based on CAPM, the start of demolition work for the reconstruction of the Imperial Theatre Building, and the launch of TOHO-ONE in March.

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.