Komori
Results5074TESS Holdings Co.,Ltd.Construction and Materials

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending June 2027 [Japanese GAAP]

In the first quarter, revenue decreased 6.6% year on year, and operating profit, ordinary profit and net income all moved from black to red. The full-year earnings forecast was left unchanged, while the annual dividend forecast was raised from ¥9.54 to ¥9.60 per share.

Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-6.6
% (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Results for this period

First quarter1 July 2026–30 September 2026ConsolidatedJapanese GAAP
Net Sales11,876¥ millionYear on year -6.6%Progress 18.6%
Operating profit-98¥ million
Ordinary income-552¥ million
Net income attributable to owners of the parent-565¥ million

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share△¥8.00
Financial position at period-end
Total assets168,633¥ million
of which net assets 51,068 ¥ millionEquity ratio 30.1%vs. prior year-end -1.5pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Segment revenueEngineering Business ¥4,093 million (YoY -27.5%), Energy Supply Business ¥7,783 million (YoY +10.2%)
Segment profitEngineering Business ¥-180 million, Energy Supply Business ¥-49 million
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥64,000 million (YoY +25.0%)
Operating profit¥4,700 million (YoY -11.8%)
Ordinary income¥2,900 million (YoY -24.4%)
Net income¥1,800 million (YoY -15.2%)
Revision to Earnings ForecastNo
Annual Dividend Forecast¥9.54 → ¥9.6(+0.6%)
Factors Behind Changes in Business Performance

The Engineering business posted lower revenue and an expanded loss due to a decline in the number of projects and the limited revenue contribution from battery storage system projects. In the Energy Supply business, power generation and electricity sales revenue declined due to scheduled inspections and output curtailment, while some revenue increased through higher supply volumes under market-linked pricing plans, higher selling prices and an increase in unscheduled maintenance work.

Disclosure regarding the going concern assumption

No matters to report

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew 0 / Excluded 0 / Company name Not applicable
Impairment lossNone (material impairment loss related to property, plant and equipment)
Depreciation and amortization¥1,780 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable Yes / Subject person Institutional investors and analysts
Issued Shares at Period-End70,773,230 Shares
Treasury Shares at Period-End130,156 Shares
Results for this period
ItemDetails
Fiscal Period ClassificationFirst quarter
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 July 2026–30 September 2026
Net Sales¥11,876 million (YoY -6.6%)
Operating profit¥-98 million
Ordinary income¥-552 million
Profit attributable to owners of the parent¥-565 million
Net income per share△¥8.00
Equity ratioEnd of the current fiscal period 30.1 / End of previous period 31.6
Total assets¥168,633 million
Net assets¥51,068 million
Full-year earnings forecastNet Sales ¥64,000 million (YoY +25.0%) / Operating profit ¥4,700 million (YoY -11.8%) / Ordinary income ¥2,900 million (YoY -24.4%) / Net income ¥1,800 million (YoY -15.2%)
Revision to Earnings ForecastNo
Annual Dividend Forecast¥9.54 → ¥9.6(+0.6%)
Segment revenueEngineering Business ¥4,093 million (YoY -27.5%), Energy Supply Business ¥7,783 million (YoY +10.2%)
Segment profitEngineering Business ¥-180 million, Energy Supply Business ¥-49 million
Depreciation and amortization¥1,780 million
Impairment lossNone (material impairment loss related to property, plant and equipment)
Disclosure regarding the going concern assumptionNo matters to report
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew 0 / Excluded 0 / Company name Not applicable
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable Yes / Subject person Institutional investors and analysts
Issued Shares at Period-End70,773,230 Shares
Treasury Shares at Period-End130,156 Shares
Factors Behind Changes in Business PerformanceThe Engineering business posted lower revenue and an expanded loss due to a decline in the number of projects and the limited revenue contribution from battery storage system projects. In the Energy Supply business, power generation and electricity sales revenue declined due to scheduled inspections and output curtailment, while some revenue increased through higher supply volumes under market-linked pricing plans, higher selling prices and an increase in unscheduled maintenance work.
Items this document does not state (11)
Operating MarginCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodPayout ratioShareholder Return PolicyRegional salesOrders received and order backlogBreakdown of extraordinary income (loss)Material subsequent events

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.

In the Engineering business, the number of energy-saving equipment and solar power generation system projects declined, while battery storage system projects made only a limited contribution to revenue due to construction progress. In the Energy Supply business, power generation decreased due to scheduled inspections at the Saga-Imari Biomass Power Plant and output curtailment at the Fukuoka Miyako Mega Solar Power Plant and other facilities. On the other hand, some revenue increased due to the expansion of supply volumes under market-linked electricity pricing plans, higher selling prices and an increase in unscheduled maintenance work.

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Consolidated Financial Results for the First Quarter of the Fiscal Year Ending June 2027 [Japanese GAAP] | TESS Holdings Co.,Ltd. (5074) timely disclosure | Komori