Tess Holdings Co.,Ltd. Revises Earnings & Dividend — Operating Profit +41.7%
Tess Holdings Co.,Ltd. (TSE:5074) has raised its earnings and dividend guidance for the fiscal year ending June 2026, citing stronger-than-expected performance in energy storage systems and improved cost efficiency.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| Revenue | JPY 47.0bn | JPY 51.0bn | JPY 4.0bn | 8.5% |
| Operating Profit | JPY 3.6bn | JPY 5.1bn | JPY 1.5bn | 41.7% |
| Ordinary Income | JPY 1.8bn | JPY 3.6bn | JPY 1.8bn | 100.0% |
| Net Profit | JPY 1.2bn | JPY 1.8bn | JPY 0.6bn | 50.0% |
| EPS | JPY 17.02/share | JPY 25.53/share | JPY 8.51/share | 50.0% |
| Annual Dividend | JPY 5.80/share | JPY 8.08/share | JPY 2.28/share | 39.3% |
The company attributed the upward revision to robust progress in engineering division contracts for battery energy storage systems, particularly engineering-procurement-construction (EPC) work on the Shizuoka Kikukawa storage facility and a joint venture battery storage project with Tokyo Century Corporation. Operations and maintenance services in the energy supply division also exceeded initial projections. Selling, general and administrative expenses came in below forecast, further bolstering profitability. Management noted that fourth-quarter project acceleration drove the substantial ordinary income (keijo rieki) improvement, which doubled year-over-year.
The dividend increase reflects the company’s 30% consolidated payout ratio policy, ensuring shareholders benefit from improved earnings. The revision signals confidence in the energy storage market’s expansion and Tess Holdings’ execution capability. However, investors should note that the company expects one-time charges in Q1 related to deferred tax asset recognition and Q4 pension accounting changes, which will partially offset net profit growth.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.