TOENEC CORPORATION (1946): FY2025 Results Summary — Record Revenue and Record Profit at Every Level

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

Note: TOENEC CORPORATION does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company labels this period “the fiscal year ended March 31, 2026”; this site classifies the most recent completed full year as FY2025, and the period labels used in the text, tables and segment data follow the source materials. TOENEC’s consolidated results for the fiscal year ended March 31, 2026 were revenue of 272,468 million yen (up 0.6% year on year), operating profit of 21,421 million yen (up 33.5%), ordinary profit of 22,639 million yen (up 47.4%), and profit attributable to owners of parent of 17,810 million yen (up 65.4%). The materials explain that, with private-sector capital investment remaining at a high level and a favorable business environment continuing, revenue reached a record high on factors including steady progress on indoor wiring work in hand, and that profit reached a record high at every level on improved construction profitability and sales of strategically held shares. The consolidated forecast for the fiscal year ending March 31, 2027 is revenue of 285,000 million yen and ordinary profit of 23,500 million yen.

Consolidated Results (Fiscal Year Ended March 31, 2026 Actual)

Consolidated margins on revenue were 7.9% for operating profit, 8.3% for ordinary profit and 6.5% for profit attributable to owners of parent. Among the factors behind the change in consolidated revenue, the materials cite an increase from the completion of projects such as factories and office buildings and an increase from passing on price rises, against a decrease due to the reaction to large-scale projects in the previous fiscal year, a decrease due to the reaction to renewable energy projects in the previous fiscal year, and a decline in mobile phone facility construction. Factors behind the change in profit attributable to owners of parent include an increase from improved construction profitability in the domestic business, higher profit at group companies (equity-method affiliates), and an increase from the reaction to the loss on retirement of non-current assets and the impairment of goodwill recorded in the previous fiscal year.

Item	FY ended March 31, 2026 (Consolidated)	YoY Change	Margin
Revenue	272,468 million yen	+0.6%	—
Operating profit	21,421 million yen	+33.5%	7.9%
Ordinary profit	22,639 million yen	+47.4%	8.3%
Profit attributable to owners of parent	17,810 million yen	+65.4%	6.5%

On a non-consolidated basis, revenue was 246,646 million yen (up 1.1% year on year), operating profit 20,702 million yen (up 31.5%, margin 8.4%), ordinary profit 20,931 million yen (up 36.9%, 8.5%) and net profit 15,684 million yen (up 62.3%, 6.4%). On a non-consolidated basis as well, the company states that profit reached a record high at every level. On the consolidated balance sheet, total assets were 312,053 million yen (up 1,492 million yen from the end of the previous fiscal year), total liabilities 158,882 million yen (down 14,997 million yen) and total net assets 153,170 million yen (up 16,489 million yen), of which shareholders’ equity was 135,708 million yen (up 12,452 million yen).

Results by Construction Division and Business

The breakdown of revenue for the fiscal year ended March 31, 2026 was indoor wiring construction 99,804 million yen, distribution line construction 81,022 million yen, telecommunications construction 16,759 million yen, air-conditioning and piping construction 19,762 million yen, underground line construction 12,162 million yen, energy business 12,704 million yen, merchandise sales 4,432 million yen, and subsidiaries and consolidation adjustments 25,821 million yen. Orders received (non-consolidated) were 241,128 million yen, and the company expects 263,000 million yen for the fiscal year ending March 31, 2027 (up 21,871 million yen, or 9.1%, year on year). Orders received for indoor wiring and air-conditioning and piping construction totaled 124,711 million yen and revenue for the two totaled 119,565 million yen; by area, orders received comprised the Chubu region at 88,215 million yen (71% of the total), the Tokyo metropolitan and Kinki regions at 31,408 million yen (25%) and other areas at 5,087 million yen (4%).

Category	FY ended March 31, 2026 (Actual)	FY ending March 31, 2027 (Forecast)	Change	% Change
Distribution line construction	81,022	89,600	+8,577	+10.6%
Underground line construction	12,162	13,100	+937	+7.7%
Indoor wiring construction	99,804	93,500	△6,304	△6.3%
Air-conditioning and piping construction	19,762	21,000	+1,237	+6.3%
Telecommunications construction	16,759	20,500	+3,740	+22.3%
Energy business	12,704	12,700	△4	△0.0%
Merchandise sales	4,432	4,600	+167	+3.8%
Subsidiaries and consolidation adjustments	25,821	30,000	+4,178	+16.2%
Revenue (consolidated)	272,468	285,000	+12,531	+4.6%

Note: figures in the table above are in millions of yen. Major completed projects cited include the Yaesu 1-chome North District Category I Urban Redevelopment Project (Tokyo), the Tokio Marine Building project (Tokyo), the Aiphone Co., Ltd. head office building (Aichi), the Suzuki Motor Corporation head office EM/EPT building (Shizuoka) and the Kosai City school lunch center (Shizuoka). Major orders received include MoN Takanawa: The Museum of Narratives (Tokyo), Omotesando Grid Tower (Tokyo), the Kindai University Faculty of Medicine and Kindai University Hospital (Osaka), the Nagoya City Mizuho Park Athletic Stadium (Paloma Mizuho Stadium, Aichi) and The Landmark Nagoya Sakae (Aichi).

Forecast for the Fiscal Year Ending March 31, 2027

Item (Consolidated)	FY ending March 31, 2027 (Full-Year Forecast)	FY ended March 31, 2026 (Actual)	Change	% Change
Orders received (non-consolidated)	263,000 million yen	241,128 million yen	+21,871	+9.1%
Revenue	285,000 million yen	272,468 million yen	+12,531	+4.6%
Operating profit	24,000 million yen (8.4%)	21,421 million yen (7.9%)	+2,578	+12.0%
Ordinary profit	23,500 million yen (8.2%)	22,639 million yen (8.3%)	+860	+3.8%
Profit attributable to owners of parent	18,000 million yen (6.3%)	17,810 million yen (6.5%)	+189	+1.1%

The consolidated first-half forecast is revenue of 129,000 million yen, operating profit of 10,000 million yen (margin 7.8%), ordinary profit of 9,500 million yen (7.4%) and profit attributable to owners of parent of 8,500 million yen (6.6%). Figures in parentheses are margins on revenue.

Shareholder Returns

As its dividend policy, the company positions the balanced implementation of internal reserves for investment in growth strategies and of shareholder returns as an important management issue in order to achieve sustainable growth and enhance corporate value over the medium to long term, and, taking comprehensive account of the improvement of capital profitability, the securing of financial soundness and the free cash flow situation, its basic policy is to “return profits in line with performance using a consolidated payout ratio of 40% as a guide.” On April 28, 2026 the company announced a revision to its planned dividend, raising the annual dividend from 65 yen to 76 yen. It also implemented a stock split of five shares for each share of common stock effective October 1, 2024, and dividends per share are presented on a basis that retroactively reflects the split. Under its capital policy, the company is promoting the reduction of non-business assets and the strengthening of shareholder returns with an awareness of the share price in order to improve capital efficiency while maintaining financial soundness; for strategically held shares it has set a reduction policy of “holding less than 10% of consolidated net assets,” and in the fiscal year ended March 31, 2026 it sold 15 issues for 2,378 million yen.

Medium-term Management Plan 2027

Under Medium-term Management Plan 2027, the company sets out four basic policies — “challenging growth fields,” “deepening existing businesses,” “further expanding investment in human resources” and “strengthening the management foundation” — and positions “initiatives for carbon neutrality,” “promotion of digitalization and DX” and “securing human resources and promoting their active participation” as growth drivers. Having achieved its numerical targets for revenue, ordinary profit and ROE, the company revised those targets in an announcement dated April 28, 2026. On its view of the business environment, it assumes that capital investment demand will remain firm against a backdrop of aging facilities, the transition to carbon neutrality and the use of digital technology, while it regards the labor shortage accompanying the declining birthrate and aging population as an issue for the construction industry as a whole and treats securing human resources and improving productivity as important management issues.

Medium-term Management Plan 2027 numerical targets (FY2027 consolidated results)	After revision	Previously announced (April 28, 2023)
Revenue	310 billion yen	270 billion yen
Ordinary profit	26 billion yen	18 billion yen
ROE	10.5%	8.0%

Topics

For the new head office building construction plan, the site is 1-20-31 Sakae, Naka-ku, Nagoya, completion is scheduled within fiscal 2028, the building will have nine floors above ground, three basement floors and one penthouse floor (total floor area of 32,970 square meters), and the planned investment is 23,923 million yen (of which 3,558 million yen had already been paid as of the end of March 2026). The company states that it will consolidate head office functions and personnel to achieve further operational efficiency, in order to address the strengthening of its BCP for large-scale natural disasters and the inefficiency caused by the dispersion of departments and personnel. Under its area strategy, the company will work to expand its share and improve profitability in its home Chubu region while focusing on strengthening its business in the Tokyo metropolitan and Kinki regions, where construction demand is strong, and overseas, where economic development is expected. In its corporate profile, consolidated employees numbered 6,487 as of the end of March 2026, with 10 group companies (four in Japan and six overseas), 82 domestic bases (non-consolidated, of which 74 are in the Chubu area) and nine overseas bases (consolidated).

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.