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Presentation materials for financial results5074TESS Holdings Co.,Ltd.Construction and Materials

Financial Results Briefing Materials for the Fiscal Year Ending June 2026

For the fiscal year ended June 2026, revenue, operating profit, and net income attributable to owners of the parent increased year on year, driven by growth in battery storage EPC projects and expanded electricity sales revenue from renewable energy generation. For the fiscal year ending June 2027, revenue is expected to increase, but operating profit, ordinary profit, and net income are forecast to decline.

Worth reading
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Direction
Mixed performance
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Scale
14533
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFull fiscal year ended June 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥51,217 million+39.6%
Operating profit¥5,326 million+109.0%
Ordinary income¥3,834 million
Net income¥2,123 million+936.6%
Selling, general and administrative expenses¥5,091 million
Operating profit margin10.4%, up 3.5 percentage points from 6.9% in the prior fiscal year
Full-year earnings forecast
Fiscal year ending June 2027
Net Sales
¥64,000 million
Gross profit
¥10,450 million
Operating profit
¥4,700 million
Ordinary income
¥2,900 million
Profit attributable to owners of the parent
¥1,800 million
Year-end dividend
¥9.6 per share
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 Sales100.4％
Gross profit102.1％
Operating profit104.4％
Ordinary income106.5％
Profit attributable to owners of the parent118.0％
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue, gross profit, operating profit, ordinary profit, and net income all exceeded 100% of the respective forecasts
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Sustainability of battery storage EPC orders, revenue recognition methods, gross margin, resource shortages, cost inflation risks, and measures to address grid connection delays
  2. The impact of the situation in the Middle East, materials and logistics costs, and growing electricity demand from data centers
  3. Details of the shareholder benefits program
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Lower derivative valuation losses (hedge accounting applied)¥1,661 million
  • Decline from the one-off gain associated with the consolidation of みやこ¥-328 million
  • Decrease in equity-method investment losses¥406 million
  • Foreign Exchange Effects¥461 million
  • Increase in gross profit¥3,466 million
  • Unprofitable biomass EPC projects¥-502 million
  • Decrease in gross profit¥-94 million
  • Increase in personnel expenses¥-303 million
  • Increase in shareholder benefit program expenses¥-428 million
  • Increase in interest expenses and other factors¥-137 million
New initiatives
  • Securing a large battery storage EPC order
  • Business alliance with 地盤ネット and バディネット for battery storage facility development
  • Collaboration with E-Flow and Sustech on battery storage and aggregation
  • Completion of the EFB pellet manufacturing demonstration plant and launch of demonstrations
  • 全面リニューアル of the corporate website
Key KPIsA metric the company considers important as a management benchmark.
  • Total renewable energy generation capacity412.7 MW
  • Capacity commencing supply under on-site PPAs12.1 MW
  • Number of on-site PPA customers9 Engagements
  • Orders received¥42,625 million
    Year on year against the same period last year+188.8%
  • Order backlog¥43,304 million
    Year on year against the same period last year+189.3%
  • ROE4.5 ％
  • ROIC2.5 ％
Segment results
Engineering Business
Net Sales
¥22,197 million+32.7%
Gross profit
¥4,593 million+96.4%
Operating profit
¥2,832 million+221.8%
Energy Supply Business
Net Sales
¥29,019 million+45.4%
Gross profit
¥5,824 million+13.9%
Operating profit
¥4,337 million+29.6%
Medium-term management plan targets
Fiscal year ending June 2030
Gross profitJPY 18.7 billion (JPY 21.5 billion when the medium-term plan was formulated)
Operating profit¥13.4 billion
ROE11.7％
ROIC5.7％
Renewable energy capacity transferred to the company's own FIP scheme113MW
Cumulative installed capacity (grid-scale battery storage facilities)700MW
Cumulative installed capacity (battery storage facilities other than grid-scale facilities)150MW
Biomass fuel supply volume500,000 tonnes/year
Renewable energy generation capacity470MW
Financial targets
Actual results for the fiscal year ended June 2026
ROE4.5％
ROIC2.5％
Target for the fiscal year ending June 2030
ROE11.7％
ROIC5.7％
Orders received and order backlog
Orders received
¥42,625 million+188.8%
Order backlog
¥43,304 million+189.3%
Number of employees
Change during the periodHeadcount increased by 55 year on year
Payout ratio
Consolidated dividend payout ratio of approximately 30%; forecast for the fiscal year ending June 2027 is 35.0%
Gross profit
JPY 10,417 million; gross margin of 20.3%, up 39.8% year on year
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFull fiscal year ended June 2026
Net Sales¥51,217 million (YoY +39.6%)
Operating profit¥5,326 million (YoY +109.0%)
Ordinary income¥3,834 million
Net income¥2,123 million (YoY +936.6%)
Gross profitJPY 10,417 million; gross margin of 20.3%, up 39.8% year on year
Operating profit margin10.4%, up 3.5 percentage points from 6.9% in the prior fiscal year
Selling, general and administrative expenses¥5,091 million
Full-year earnings forecastFiscal year ending June 2027 Net Sales ¥64,000 million / Gross profit ¥10,450 million / Operating profit ¥4,700 million / Ordinary income ¥2,900 million / Profit attributable to owners of the parent ¥1,800 million / Year-end dividend ¥9.6 per share
Progress against full-year forecastNet Sales 100.4％ / Gross profit 102.1％ / Operating profit 104.4％ / Ordinary income 106.5％ / Profit attributable to owners of the parent 118.0％
Self-assessment against the planRevenue, gross profit, operating profit, ordinary profit, and net income all exceeded 100% of the respective forecasts
Segment resultsEngineering Business Net Sales ¥22,197 million (YoY +32.7%) / Gross profit ¥4,593 million (YoY +96.4%) / Operating profit ¥2,832 million (YoY +221.8%) / Energy Supply Business Net Sales ¥29,019 million (YoY +45.4%) / Gross profit ¥5,824 million (YoY +13.9%) / Operating profit ¥4,337 million (YoY +29.6%)
Breakdown of Factors Affecting the ChangeFactors Lower derivative valuation losses (hedge accounting applied) / Amount ¥1,661 million, Factors Decline from the one-off gain associated with the consolidation of みやこ / Amount ¥-328 million, Factors Decrease in equity-method investment losses / Amount ¥406 million, Factors Foreign Exchange Effects / Amount ¥461 million, Factors Increase in gross profit / Amount ¥3,466 million, Factors Unprofitable biomass EPC projects / Amount ¥-502 million, Factors Decrease in gross profit / Amount ¥-94 million, Factors Increase in personnel expenses / Amount ¥-303 million, Factors Increase in shareholder benefit program expenses / Amount ¥-428 million, Factors Increase in interest expenses and other factors / Amount ¥-137 million
Key KPIsIndicator name Total renewable energy generation capacity / Value 412.7 MW / Year on year against the same period last year Not disclosed, Indicator name Capacity commencing supply under on-site PPAs / Value 12.1 MW / Year on year against the same period last year Not disclosed, Indicator name Number of on-site PPA customers / Value 9 Engagements / Year on year against the same period last year Not disclosed, Indicator name Orders received / Value ¥42,625 million / Year on year against the same period last year ¥188.8 million, Indicator name Order backlog / Value ¥43,304 million / Year on year against the same period last year ¥189.3 million, Indicator name ROE / Value 4.5 ％ / Year on year against the same period last year Not disclosed, Indicator name ROIC / Value 2.5 ％ / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees Not disclosed / Change during the period Headcount increased by 55 year on year
Medium-term management plan targetsFiscal year ending June 2030 Gross profit JPY 18.7 billion (JPY 21.5 billion when the medium-term plan was formulated) / Operating profit ¥13.4 billion / ROE 11.7％ / ROIC 5.7％ / Renewable energy capacity transferred to the company's own FIP scheme 113MW / Cumulative installed capacity (grid-scale battery storage facilities) 700MW / Cumulative installed capacity (battery storage facilities other than grid-scale facilities) 150MW / Biomass fuel supply volume 500,000 tonnes/year / Renewable energy generation capacity 470MW
Financial targetsActual results for the fiscal year ended June 2026 ROE 4.5％ / ROIC 2.5％ / Target for the fiscal year ending June 2030 ROE 11.7％ / ROIC 5.7％
Payout ratioConsolidated dividend payout ratio of approximately 30%; forecast for the fiscal year ending June 2027 is 35.0%
Orders received and order backlogOrders received ¥42,625 million (YoY +188.8%) / Order backlog ¥43,304 million (YoY +189.3%)
Key points of the Q&ASustainability of battery storage EPC orders, revenue recognition methods, gross margin, resource shortages, cost inflation risks, and measures to address grid connection delays, The impact of the situation in the Middle East, materials and logistics costs, and growing electricity demand from data centers, Details of the shareholder benefits program
New initiativesSecuring a large battery storage EPC order, Business alliance with 地盤ネット and バディネット for battery storage facility development, Collaboration with E-Flow and Sustech on battery storage and aggregation, Completion of the EFB pellet manufacturing demonstration plant and launch of demonstrations, 全面リニューアル of the corporate website
Items this document does not state (9)
Results for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesCapital expendituresMarket Size / Share

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.

Revenue and profit increased in the fiscal year ended June 2026 due to growth in battery storage EPC projects, the start of operations and consolidation of renewable energy power plants, and an increase in on-site PPAs. Ordinary profit benefited from lower derivative valuation losses, lower equity-method investment losses, and foreign exchange effects, despite the year-on-year decline in one-off gains from anonymous partnership investments and extraordinary gains recorded in the prior fiscal year. For the fiscal year ending June 2027, increases in personnel expenses, recruitment costs, and research and development expenses are expected as a result of growth investments.

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Financial Results Briefing Materials for the Fiscal Year Ending June 2026 | TESS Holdings Co.,Ltd. (5074) timely disclosure | Komori