Yondenko Corporation (TSE Prime: 1939) announced on November 11, 2026 its financial results for the second quarter (interim period) of fiscal 2026, reporting significant increases in revenue and profit, with orders received, net sales, and all profit levels reaching record highs. Net sales increased by ¥7.3 billion year-on-year to ¥50.9 billion (+16.7%), operating profit rose by ¥2.6 billion to ¥6.3 billion (+72.2%), ordinary profit increased by ¥2.7 billion to ¥6.6 billion (+69.2%), and interim net profit attributable to parent company shareholders grew by ¥1.9 billion to ¥4.5 billion (+73.1%), achieving revenue and profit growth for the first time in two years. Orders received surged by ¥21.6 billion to ¥77.3 billion, a record high, and the order backlog also rose by ¥22.1 billion to ¥82.7 billion, also a record high.
The substantial improvement in profit margins stands out. The gross profit margin on net sales rose 2.9 percentage points from 19.2% in the same period last year to 22.1%. This was driven by thorough process and cost management in building facility construction at Yondenko standalone, which ensured steady progress on existing projects, as well as the front-loading of power distribution equipment renewal work planned for the fiscal year and the completion of several high-margin projects at group companies.
By segment, air conditioning and plumbing showed the largest growth, up ¥3.3 billion year-on-year, followed by electrical and instrumentation (+¥1.9 billion), power distribution (+¥1.6 billion), and power transmission and civil engineering (+¥1.1 billion). Only information and communications declined, down ¥0.4 billion. On the orders front, contributions came from data centers in the Tokyo metropolitan area, new office building and factory construction in the Shikoku region, and increased power transmission and distribution work, with increases across all categories by construction type and region.
The full-year earnings forecast was revised upward for both consolidated and standalone results. Consolidated net sales are expected to be ¥110.0 billion, up ¥2.0 billion from the previous forecast (+10.6% year-on-year), operating profit ¥11.0 billion, up ¥1.6 billion (+24.7%), ordinary profit ¥11.5 billion, up ¥1.6 billion (+23.3%), and net profit ¥7.9 billion, up ¥1.3 billion (+5.3%). Earnings per share were revised to ¥166.85 (from the previous forecast of ¥139.39).
The dividend forecast was also revised upward, with the interim dividend increased from ¥42 to ¥50 and the year-end dividend from ¥42 to ¥50, bringing the annual dividend to ¥100 (an increase of ¥23 from the previous fiscal year’s ¥77). The consolidated payout ratio based on the earnings forecast is expected to be 59.9%, and DOE 6.5%. The equity ratio rose 4.0 percentage points from the end of the previous fiscal year to 72.4%, maintaining a high level of financial soundness.
