Tokyo Gas (9531) Q4 2026 earnings summary

Executive summary

• Achieved strong FY26/3 results with consolidated net sales up 7.5% YoY to ¥2,834.7bn, driven by overseas business, energy solutions, and higher electricity sales, supported by extraordinary gains from asset sales and foreign currency translation adjustments.

• Operating profit increased 48.5% to ¥197.7bn, and profit attributable to owners of parent jumped 205.8% to ¥226.8bn, aided by significant extraordinary income.

• ROE reached 13.2% in FY26/3, well above the cost of equity, with a target of 9% by FY29/3 under a new medium-term plan focused on capital efficiency and shareholder returns.

• Management emphasized portfolio realignment, capital structure optimization, and enhanced governance to drive sustainable profit growth and capital efficiency.

Financial highlights

• FY26/3 net sales: ¥2,834.7bn (+7.5% YoY); operating profit: ¥197.7bn (+48.5% YoY); profit attributable to owners of parent: ¥226.8bn (+205.8% YoY); basic EPS: ¥654.76.

• Equity ratio: 44.1%; net assets per share: ¥5,151.08.

• FY27/3 forecasts: net sales ¥2,947.0bn (+4.0%), profit attributable to owners of parent ¥137.0bn (-39.6%), operating profit ¥186.0bn (-5.9%).

• Extraordinary profit of ¥95.4bn included gains from asset divestments and foreign currency translation; extraordinary losses included ¥30.1bn in impairment losses.

• Cash flows from operating activities: ¥451.8bn; investing: -¥206.9bn; financing: -¥296.3bn.

Outlook and guidance

• FY27/3 profit is forecast to decline due to the absence of extraordinary gains, with segment profit expected to decrease slightly as higher overseas and urban development profits are offset by lower energy solution and network profits.

• Dividend per share is forecast to rise to ¥120 in FY27/3, with a share buyback of up to ¥50bn planned for the first half.

• ROE is projected at 8.0% for FY27/3, with a medium-term target of 9% by FY29/3.

• City gas sales volume expected to decline 3.4% YoY; electric power sales volume to rise 1.7% YoY.