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Earnings presentation2311EPCO Co.,Ltd.Information and Communications, Services and Others

Materials for the 27th Management Plan Briefing

Full-year forecasts for the fiscal year ending December 2026 were revised upward for revenue, operating income and ordinary income. The net income forecast was unchanged, with forecasts for Renewable Energy Services and Maintenance Services revised upward and the forecast for Design Services revised downward.

Worth reading
80Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
534
¥ million (increase in full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,446 million+2.8%
Ordinary income¥251 million+6.4%
Net income¥173 million-13.7%
Full-year earnings forecast
Net Sales
¥7,215 million
Operating profit
¥527 million
Ordinary income
¥671 million
Profit attributable to owners of the parent
¥485 million
Earnings per share
¥54.27
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 Sales52%
Operating profit52%
Ordinary income40%
Net income for the current fiscal year36%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In Q2, operating income at ENE’s in Maintenance Services and Renewable Energy Services was above plan, while THT’s share of profit or loss from investments accounted for using the equity method in Renewable Energy Services was below plan, resulting in net income falling short of plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated ordinary incomeFrom ¥235 million in FY25 Q2 to ¥251 million in FY26 Q2: Renewable Energy Services, -¥6 million; Maintenance Services, +¥103 million; Design Services, -¥33 million; other corporate expenses, -¥48 million
Renewable Energy ServicesENE’s, -¥41 million; THT, -¥13 million; other, +¥48 million
Maintenance ServicesRevenue growth from existing business, +¥35 million; revenue growth from new business, +¥77 million; higher expenses and other factors, -¥8 million (personnel expenses, -¥15 million; other, +¥7 million)
Design servicesMacroeconomic factors, -¥46 million; decline in EV-related work, -¥28 million; decrease in system development, -¥13 million; personnel cost reductions, +¥35 million; impact of the weaker yen, -¥19 million; benefits from other cost reductions, +¥14 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Yen/Chinese yuan exchange rateFY26 Q2: ¥23.87 per Chinese yuan
Number of versionsContinued receipt of large projects from major homebuilders is expected, along with growth in new orders for demand-response battery installation work
New initiatives
  • Launch of “Sumifu × EneKari FLEXIBLE,” using ultra-lightweight, thin solar panels
  • Beginning to accept orders for DR-capable battery installation work
  • Introduction of AI OCR and AI speech-recognition tools
  • Improve productivity through the “D-TECH 2.0 Project” in Design Services
  • Expand Design Services into BIM implementation support, application filing services and services for non-residential buildings
  • Consider an M&A investment framework of up to ¥5.0 billion for 2025-2027
Key KPIsA metric the company considers important as a management benchmark.
  • Design track record100,000 homes/year
  • Share of newly built low-rise housing14 %
  • Maintenance requests received700,000 cases/year
  • Households under customer management1,750,000 Households
  • TEPCO Home Tech contracted value¥4,019 million
    Year on year against the same period last year-17.9%
  • Number of applicants for the lottery-based shareholder benefit program6,207 people
  • Application rate for the lottery-based shareholder benefit program56.7 %
  • Number of certified electricians
Segment results
Renewable Energy Services
Net Sales
¥1,350 million+2.8%
Ordinary income
¥157 million-4.0%
Maintenance Services
Net Sales
¥1,043 million+13.2%
Ordinary income
¥210 million+97.5%
Design services
Net Sales
¥1,051 million-5.8%
Ordinary income
¥154 million-17.9%
Medium-term management plan targets
2027 target
Net Sales¥7.50 billion
Ordinary income¥1.00 billion
Operating margin13.3%
ROE14.5%
2030 target
Net Sales¥10.00 billion
Ordinary income¥1.50 billion
Operating margin15.0%
ROE18.0%
Financial targets
ROE
2027 target14.5%
FY2025 actual results7.0%
Equity ratio
Actual as of the end of June 2026Approximately 85%
Market Size / Share
Approximately 14% share of design work for new low-rise housing
Number of employees
Number of Employees797 consolidated employees (as of 31 December 2025)
Change during the periodMaintenance Services increased by 12 employees, from 289 in FY25 Q2 to 301 in FY26 Q2
Capital expenditures
¥4 billion DX investment, 2025-2027
Annual Dividend
Annual dividend per share¥35.0 per share (2026)
Payout ratio
Consolidated payout ratio of 50% and DOE of 8% as guidelines
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥3,446 million (YoY +2.8%)
Ordinary income¥251 million (YoY +6.4%)
Net income¥173 million (YoY -13.7%)
Full-year earnings forecastNet Sales ¥7,215 million / Operating profit ¥527 million / Ordinary income ¥671 million / Profit attributable to owners of the parent ¥485 million / Earnings per share ¥54.27
Progress against full-year forecastNet Sales 52% / Operating profit 52% / Ordinary income 40% / Net income for the current fiscal year 36%
Self-assessment against the planIn Q2, operating income at ENE’s in Maintenance Services and Renewable Energy Services was above plan, while THT’s share of profit or loss from investments accounted for using the equity method in Renewable Energy Services was below plan, resulting in net income falling short of plan.
Segment resultsRenewable Energy Services Net Sales ¥1,350 million (YoY +2.8%) / Ordinary income ¥157 million (YoY -4.0%) / Maintenance Services Net Sales ¥1,043 million (YoY +13.2%) / Ordinary income ¥210 million (YoY +97.5%) / Design services Net Sales ¥1,051 million (YoY -5.8%) / Ordinary income ¥154 million (YoY -17.9%)
Breakdown of Factors Affecting the ChangeConsolidated ordinary income From ¥235 million in FY25 Q2 to ¥251 million in FY26 Q2: Renewable Energy Services, -¥6 million; Maintenance Services, +¥103 million; Design Services, -¥33 million; other corporate expenses, -¥48 million / Renewable Energy Services ENE’s, -¥41 million; THT, -¥13 million; other, +¥48 million / Maintenance Services Revenue growth from existing business, +¥35 million; revenue growth from new business, +¥77 million; higher expenses and other factors, -¥8 million (personnel expenses, -¥15 million; other, +¥7 million) / Design services Macroeconomic factors, -¥46 million; decline in EV-related work, -¥28 million; decrease in system development, -¥13 million; personnel cost reductions, +¥35 million; impact of the weaker yen, -¥19 million; benefits from other cost reductions, +¥14 million
Key KPIsDesign track record 100,000 homes/year, Share of newly built low-rise housing 14 %, Maintenance requests received 700,000 cases/year, Households under customer management 1,750,000 Households, TEPCO Home Tech contracted value ¥4,019 million, Number of applicants for the lottery-based shareholder benefit program 6,207 people, Application rate for the lottery-based shareholder benefit program 56.7 %, Indicator name Number of certified electricians / value Not disclosed / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 797 consolidated employees (as of 31 December 2025) / Change during the period Maintenance Services increased by 12 employees, from 289 in FY25 Q2 to 301 in FY26 Q2
Assumptions Underlying the Business OutlookYen/Chinese yuan exchange rate FY26 Q2: ¥23.87 per Chinese yuan / Number of versions Continued receipt of large projects from major homebuilders is expected, along with growth in new orders for demand-response battery installation work
Medium-term management plan targets2027 target Net Sales ¥7.50 billion / Ordinary income ¥1.00 billion / Operating margin 13.3% / ROE 14.5% / 2030 target Net Sales ¥10.00 billion / Ordinary income ¥1.50 billion / Operating margin 15.0% / ROE 18.0%
Financial targetsROE 2027 target 14.5% / FY2025 actual results 7.0% / Equity ratio Actual as of the end of June 2026 Approximately 85%
Annual DividendAnnual dividend per share ¥35.0 per share (2026) / Interim Not disclosed / End of period Not disclosed
Payout ratioConsolidated payout ratio of 50% and DOE of 8% as guidelines
Capital expenditures¥4 billion (DX investment, 2025-2027)
Market Size / ShareApproximately 14% share of design work for new low-rise housing
New initiativesLaunch of “Sumifu × EneKari FLEXIBLE,” using ultra-lightweight, thin solar panels, Beginning to accept orders for DR-capable battery installation work, Introduction of AI OCR and AI speech-recognition tools, Improve productivity through the “D-TECH 2.0 Project” in Design Services, Expand Design Services into BIM implementation support, application filing services and services for non-residential buildings, Consider an M&A investment framework of up to ¥5.0 billion for 2025-2027
Items this document does not state (11)
Operating profitGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsRisk 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.

For Renewable Energy Services, the revision reflects increased orders for projects from major homebuilders through ENE’s and for demand-response battery installation work. For Maintenance Services, it reflects the solid profit level in the first half. THT was unable to fully offset its shortfall against the first-half plan, while Design Services was revised conservatively to reflect recent order intake, the end of EV-related work and higher costs in China due to the weaker yen.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Materials for the 27th Management Plan Briefing | EPCO Co.,Ltd. (2311) timely disclosure | Komori