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Financial results presentation2311EPCO Co.,Ltd.Information and Communications, Services and Others

Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026

In the first quarter of FY2026 ending December 2026, Renewable Energy Services and Maintenance Services grew, and consolidated net sales, ordinary profit and net income exceeded the year-earlier period. Results were generally in line with the full-year forecast. Operating profit exceeded plan, while net income fell short of plan.

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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
105
¥ million (year-on-year increase in ordinary profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 202615 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,608 million+7.8%
Operating profit¥93 million
Ordinary income¥137 million+320.8%
Net income¥100 million+89.5%
Results for the three months of the current quarterNet sales of ¥1,608 million, operating profit of ¥93 million, ordinary profit of ¥137 million and net income of ¥100 million. All figures are for the first quarter alone.
Full-year earnings forecast
Net Sales
¥6,680 million
Operating profit
¥399 million
Ordinary income
¥624 million
Net income for the current fiscal year
¥485 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales24%
Operating profit23%
Ordinary income22%
Net income for the current fiscal year21%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 was generally in line with plan. Maintenance Services and Design Services exceeded plan, resulting in operating profit above plan. Net income, however, fell short of plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated ordinary income
Renewable Energy Services+¥69 million
Maintenance Services+¥57 million
Design services-¥2 million
Other and corporate expenses-¥18 million
Renewable Energy Services ordinary profit
ENE's-¥4 million
THT+¥26 million
Other+¥47 million
Ordinary profit from maintenance services
Revenue growth from existing businesses+¥22 million
Revenue growth from new businesses+¥25 million
Productivity improvements and other factors+¥8 million
Ordinary profit from design services
Revenue decline due to macroeconomic effects and other factors-¥11 million
Revenue growth from new contracts and other factors+¥18 million
Increase in costs-¥9 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Renewable energy demand is expected to remain firm, supported by government policy.
  • THT sales growth rate: +21.2%
  • ENE's sales: ¥450 million to THT (+25.6%) and ¥1.88 billion from other sources (+7.5%)
  • Maintenance Services sales growth rate: +10.3%; profit growth rate: +32.3%
  • Design Services profit growth rate: +27.2%
New initiatives
  • Strengthening marketing initiatives in collaboration with the TEPCO Group
  • Proactively securing self-consumption solar projects for business establishments
  • Increasing the incentive contribution rate under the employee shareholding plan from 10% to 20% and extending eligibility to subsidiary employees
  • Reforming the design review process through D-TECH2.0
  • Considering an M&A investment framework of up to ¥5.0 billion during 2025–2027
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of installations of the zero-upfront-cost service55,000 Engagements
  • TEPCO Home Tech contracted value¥2,163 million-5.2%
  • Number of applicants for the lottery-based shareholder benefit program5,569 people
  • Application rate for the lottery-based shareholder benefit program48 %
  • Residential design track record100,000 homes/year
  • Maintenance requests received700,000 cases/year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
TEPCO HomeTech's contracted value was ¥2,163 million, down 5.2% year on year. Cumulative installations of the zero-upfront-cost service reached 55,000. A direct breakdown into customer numbers, average spending per customer and other factors is not disclosed.
Segment results
Renewable Energy Services
Net Sales
¥552 million+12.2%
Ordinary income
¥80 million+620.1%
Maintenance Services
Net Sales
¥507 million+10.5%
Ordinary income
¥108 million+112.5%
Design services
Net Sales
¥549 million+1.4%
Ordinary income
¥82 million-3.0%
Medium-term management plan targets
2027
Net Sales¥7.50 billion
Ordinary income¥1.00 billion
Operating margin13.3%
ROE14.5%
2030
Net Sales¥10.00 billion
Ordinary income¥1.50 billion
Operating margin15.0%
ROE18.0%
Financial targets
Equity ratio
Actual resultsApproximately 80%
ROE
2027 target14.5%
FY2025 actual13.8%
Market Size / Share
Annual residential design volume is approximately 100,000 homes, with an approximately 14% share of newly built low-rise housing.
Number of stores and locations
Maintenance Services has 3 locations in Okinawa, Tokyo and Kanazawa. The number of locations opened or closed during the period is not disclosed.
Number of employees
The consolidated workforce was 797 people, including temporary and dispatched employees, as of 31 December 2025. Maintenance Services had 286 people, down 2 year on year. ENE's had 55 people and TEPCO HomeTech had 111 people.
Capital expenditures
¥4 100 million DX investment, 2025–2027
Annual Dividend
Forecast for the fiscal year ending December 2026¥35 per share
Interim Dividend¥15/share
Year-end dividend¥20 per share
Payout ratio
A consolidated dividend payout ratio of 50% and a DOE of 8% are used as guidelines.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥1,608 million (YoY +7.8%)
Operating profit¥93 million
Ordinary income¥137 million (YoY +320.8%)
Net income¥100 million (YoY +89.5%)
Results for the three months of the current quarterNet sales of ¥1,608 million, operating profit of ¥93 million, ordinary profit of ¥137 million and net income of ¥100 million. All figures are for the first quarter alone.
Full-year earnings forecastNet Sales ¥6,680 million / Operating profit ¥399 million / Ordinary income ¥624 million / Net income for the current fiscal year ¥485 million
Progress against full-year forecastNet Sales 24% / Operating profit 23% / Ordinary income 22% / Net income for the current fiscal year 21%
Self-assessment against the planQ1 was generally in line with plan. Maintenance Services and Design Services exceeded plan, resulting in operating profit above plan. Net income, however, fell short of plan.
Segment resultsRenewable Energy Services Net Sales ¥552 million (YoY +12.2%) / Ordinary income ¥80 million (YoY +620.1%) / Maintenance Services Net Sales ¥507 million (YoY +10.5%) / Ordinary income ¥108 million (YoY +112.5%) / Design services Net Sales ¥549 million (YoY +1.4%) / Ordinary income ¥82 million (YoY -3.0%)
Breakdown of Factors Affecting the ChangeConsolidated ordinary income Renewable Energy Services +¥69 million / Maintenance Services +¥57 million / Design services -¥2 million / Other and corporate expenses -¥18 million / Renewable Energy Services ordinary profit ENE's -¥4 million / THT +¥26 million / Other +¥47 million / Ordinary profit from maintenance services Revenue growth from existing businesses +¥22 million / Revenue growth from new businesses +¥25 million / Productivity improvements and other factors +¥8 million / Ordinary profit from design services Revenue decline due to macroeconomic effects and other factors -¥11 million / Revenue growth from new contracts and other factors +¥18 million / Increase in costs -¥9 million
Key KPIsCumulative number of installations of the zero-upfront-cost service 55,000 Engagements, TEPCO Home Tech contracted value ¥2,163 million (YoY -5.2%), Number of applicants for the lottery-based shareholder benefit program 5,569 people, Application rate for the lottery-based shareholder benefit program 48 %, Residential design track record 100,000 homes/year, Maintenance requests received 700,000 cases/year
Unit price and quantity metricsTEPCO HomeTech's contracted value was ¥2,163 million, down 5.2% year on year. Cumulative installations of the zero-upfront-cost service reached 55,000. A direct breakdown into customer numbers, average spending per customer and other factors is not disclosed.
Number of stores and locationsMaintenance Services has 3 locations in Okinawa, Tokyo and Kanazawa. The number of locations opened or closed during the period is not disclosed.
Number of employeesThe consolidated workforce was 797 people, including temporary and dispatched employees, as of 31 December 2025. Maintenance Services had 286 people, down 2 year on year. ENE's had 55 people and TEPCO HomeTech had 111 people.
Assumptions Underlying the Business OutlookRenewable energy demand is expected to remain firm, supported by government policy., THT sales growth rate: +21.2%, ENE's sales: ¥450 million to THT (+25.6%) and ¥1.88 billion from other sources (+7.5%), Maintenance Services sales growth rate: +10.3%; profit growth rate: +32.3%, Design Services profit growth rate: +27.2%
Medium-term management plan targets2027 Net Sales ¥7.50 billion / Ordinary income ¥1.00 billion / Operating margin 13.3% / ROE 14.5% / 2030 Net Sales ¥10.00 billion / Ordinary income ¥1.50 billion / Operating margin 15.0% / ROE 18.0%
Financial targetsEquity ratio Actual results Approximately 80% / Target Not disclosed / ROE 2027 target 14.5% / FY2025 actual 13.8%
Annual DividendForecast for the fiscal year ending December 2026 ¥35 per share / Interim Dividend ¥15/share / Year-end dividend ¥20 per share
Payout ratioA consolidated dividend payout ratio of 50% and a DOE of 8% are used as guidelines.
Capital expenditures¥4 100 million (DX investment, 2025–2027)
Market Size / ShareAnnual residential design volume is approximately 100,000 homes, with an approximately 14% share of newly built low-rise housing.
New initiativesStrengthening marketing initiatives in collaboration with the TEPCO Group, Proactively securing self-consumption solar projects for business establishments, Increasing the incentive contribution rate under the employee shareholding plan from 10% to 20% and extending eligibility to subsidiary employees, Reforming the design review process through D-TECH2.0, Considering an M&A investment framework of up to ¥5.0 billion during 2025–2027
Items this document does not state (7)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Renewable Energy Services benefited from higher profit at THT and a rebound following the transfer of the equity interest in Banhao EPCO, which had reported a loss in the year-earlier period. Maintenance Services benefited from an increase in newly contracted work, price revisions and productivity improvements. In Design Services, higher costs in China due to the weaker yen had an adverse effect, while net income was affected by THT's equity-method investment gains and losses falling below plan.

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Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | EPCO Co.,Ltd. (2311) timely disclosure | Komori