# Takasago Thermal Engineering Co., Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第146期(2025/04/01－2026/03/31) (S100YDOU)
> Page: https://vizora.meequs.com/en/company/takasago-thermal-engineering
> Retrieved: 2026-09-30T21:40:33.482Z

## Company

Takasago Thermal Engineering, founded in 1923, is a company in Air Conditioning listed on TSE Prime. It has 7,287 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Takasago Thermal Engineering Co., Ltd. |
| Ticker | 1969 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1969.T) |
| Listing | TSE Prime |
| Head office | 東京都新宿区新宿六丁目27番30号 |
| Representative (per filing) | 代表取締役社長 社長執行役員 小島 和人 |
| Founded | Nov 1923 |
| Share capital | ¥13.1B |
| Employees (consolidated) | 7,287 |
| Average salary (parent only) | ¥12.5M |
| Fiscal year end | March |
| Website | www.tte-net.com (https://www.tte-net.com/) |
| Corporate number | 3010001008749 |
| EDINET | E00149 |
| Industries (Vizora) | Air Conditioning, Plant Engineering & Building Services |

> Profile source: annual securities report (S100YDOU, filed 2026-06-18). As of filing

## Five-axis industry profile

Primary industry: Plant Engineering & Building Services (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 74.3 | 72 |
| Profitability | 69.1 | 76 |
| Cash conversion | 38.5 | 74 |
| Efficiency | 77 | 76 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 98% of Takasago Thermal Engineering's sales come from Equipment work, with Equipment manufacturing and sales and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥11 is left as operating profit.
- Revenue changed +11.1% from the prior year, operating profit +47.3%.

## Company structure

- Segment revenue mix: Equipment work 98.0%、Equipment manufacturing and sales 2.0%、Other 0.0%
- Revenue → net income: ¥423923000000 → ¥38013000000
- Net income → operating cash flow: ¥38013000000 → ¥29725000000（difference ¥-8288000000）
- Main uses of operating cash flow: CapEx ¥5066000000 / dividends ¥12634000000 / buybacks ¥8209000000
- Change in cash: ¥1172000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥423.9B |  |
| Operating income | ¥47.7B | Margin 11.3% |
| Net income | ¥37.5B | Margin 8.8% |
| Free cash flow | ¥24.7B |  |
| Largest business | Equipment work | of segment revenue 98.0% |
| Employees (consolidated) | 7,287 |  |
| EPS | ¥258.75 |  |
| Book value per share | ¥1392.34 |  |
| Equity ratio | 55.0% |  |
| Shares outstanding | 140,478,804 |  |
| Treasury shares | 8,671,900 |  |
| Shareholders | 17,617 |  |
| Average salary (parent only) | ¥12.5M | Filing company only |
| Cash ratio | 11.1% | Cash ÷ revenue 10.0% |
| Vs. industry median margin | +2.2 pp | Plant Engineering & Building Services |
| ROE | 21.8% | Derived from disclosed figures |
| ROA | 10.5% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 98% of positive segment profit
- FY2026, parent-company salary changed +40% over five years

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥275181000000 | ¥423923000000 | +54.1% |
| Operating income | ¥12300000000 | ¥47745000000 | +288.2% |
| Operating margin | 4.5% | 11.3% | +6.8 pp |
| Employees | 5,890 people | 7,287 people | +23.7% |
| Cash and equivalents | ¥62271000000 | ¥42537000000 | -31.7% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 設備工事事業 → 設備工事事業 | 97.8% |
| 設備機器の製造・販売事業 → 設備機器の製造・販売事業 | 2.0% |
| 設備機器の製造・販売事業 → 事業再編・廃止 | 0.1% |
| その他 → その他 | 0.0% |
| その他 → 事業再編・廃止 | 0.0% |
| 新設・再編 → 設備工事事業 | 0.1% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Equipment work | 5 years | +9.1% | ¥415383000000 | 11.3% | 2 |
| Equipment manufacturing and sales | 5 years | +7.7% | ¥8414000000 | 10.8% | 2 |
| Other | 5 years | -1.1% | ¥125000000 | 64.0% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 423,923 | 100.0% | S100YDOU |
| Cost of revenue | 330,203 | 77.9% | S100YDOU |
| Gross profit | 93,719 | 22.1% | S100YDOU |
| SG&A | 45,974 | 10.8% | S100YDOU |
| Operating income | 47,745 | 11.3% | S100YDOU |
| Ordinary income | 50,642 | 11.9% | S100YDOU |
| Pretax income | 52,826 | 12.5% | S100YDOU |
| Income tax | 14,813 | 3.5% | S100YDOU |
| Net income | 38,013 | 9.0% | S100YDOU |
| Net income attributable to owners | 37,470 | 8.8% | S100YDOU |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 78 |
| SG&A | 11 |
| Operating income | 11 |
| (Ref.) Net income | 9 |

### Margin funnel

Gross margin 22.1% → Operating margin 11.3% → Net margin 8.8%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +11.1%; Core profit growth: +47.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.27×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 381,661 | 423,923 | 42,262 | +11.1% |
| Gross profit | 71,646 | 93,719 | 22,073 | +30.8% |
| Operating income | 32,415 | 47,745 | 15,330 | +47.3% |
| Net income attributable to owners | 27,631 | 37,470 | 9,839 | +35.6% |
| Operating cash flow | 5,885 | 29,725 | 23,840 | +405.1% |
| Free cash flow | 1,548 | 24,659 | 23,111 | +1493.0% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 320,893 | 17,900 | 5.6% | 13,231 | -6,369 | -17,885 | S100LL2N |
| FY ending Mar 2021 | 275,181 | 12,300 | 4.5% | 10,116 | 22,568 | 17,931 | S100OAYB |
| FY ending Mar 2022 | 302,746 | 14,383 | 4.8% | 11,535 | 1,186 | -1,825 | S100R30N |
| FY ending Mar 2023 | 338,831 | 15,326 | 4.5% | 12,227 | 25,826 | 20,778 | S100TNK2 |
| FY ending Mar 2024 | 363,366 | 24,192 | 6.7% | 19,612 | -13,100 | -16,447 | S100VYJS |
| FY ending Mar 2025 | 381,661 | 32,415 | 8.5% | 27,631 | 5,885 | 1,548 | S100YDOU |
| FY ending Mar 2026 | 423,923 | 47,745 | 11.3% | 37,470 | 29,725 | 24,659 | S100YDOU |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥58.2M |
| Operating income per employee (consolidated) | ¥6.6M |
| Net income per employee (consolidated) | ¥5.1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 6,018 | 5,885 | 5,606 | 5,858 | 7,287 |
| Average salary (parent company) | ¥8.9M | ¥9.4M | ¥10.3M | ¥11.3M | ¥12.5M |
| Average age (parent company) | 42.3 years | 42.2 years | 42.2 years | 41.6 years | 41.5 years |
| Average tenure (parent company) | 15.6 years | 15.5 years | 15.5 years | 15.0 years | 14.7 years |

Year over year: Employees (consolidated) +24.4% · Revenue (consolidated) +11.1%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Equipment work | 415,383 | 98.0% | 46,766 | 11.3% |
| Equipment manufacturing and sales | 8,414 | 2.0% | 907 | 10.8% |
| Other | 125 | 0.0% | 80 | 64.0% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Equipment work | 98.0% | 97.9% | -0.1 | 11.3% |
| Equipment manufacturing and sales | 2.0% | 1.9% | -0.1 | 10.8% |
| Other | 0.0% | 0.2% | 0.1 | 64.0% |

Segment → industry: Equipment manufacturing and sales → Air Conditioning / Equipment work → Plant Engineering & Building Services

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 29,725 | 7.0% | S100YDOU |
| Capital expenditure | 5,066 | 1.2% | S100YDOU |
| Free cash flow | 24,659 | 5.8% | 算出 |
| Investing cash flow | -11,840 | -2.8% | S100YDOU |
| Financing cash flow | -16,956 | -4.0% | S100YDOU |
| Dividends paid | 12,634 | 3.0% | S100YDOU |
| Share buyback | 8,209 | 1.9% | S100YDOU |
| Change in cash | 1,172 | 0.3% | S100YDOU |
| Cash and equivalents | 42,537 | 10.0% | S100YDOU |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 56,867 | 69,971 | 49,064 | 41,364 | 42,537 | S100TNK2, S100VYJS, S100YDOU |
| Total assets | 300,736 | 313,391 | 340,106 | 334,949 | 381,823 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Net assets | 136,897 | 147,165 | 167,231 | 184,283 | 215,056 | S100TNK2, S100VYJS, S100YDOU |
| Share capital | 13,134 | 13,134 | 13,134 | 13,134 | 13,134 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Inventories | 3,229 | 3,330 | 4,057 | 3,889 | 4,161 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Property, plant and equipment | 20,760 | 23,756 | 23,483 | 23,919 | 23,840 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Intangible assets excluding goodwill | 8,104 | 8,104 | 9,173 | 9,628 | 11,458 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Goodwill | 1,920 | 1,728 | 1,703 | 1,419 | 2,696 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Investment securities | 33,463 | 33,775 | 46,530 | 43,220 | 64,166 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Current assets | 228,208 | 238,331 | 248,386 | 245,138 | 264,045 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Current liabilities | 134,342 | 137,146 | 146,750 | 130,040 | 145,726 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Short-term borrowings | 8,058 | 4,815 | 14,133 | 17,737 | 27,406 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Bonds | 25,000 | 25,000 | 20,000 | 15,000 | 10,000 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Total liabilities | 163,838 | 166,226 | 172,875 | 150,665 | 166,766 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Non-controlling interests | 4,000 | 4,694 | 2,875 | 3,615 | 5,167 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Equity attributable to owners of parent | 123,864 | 132,172 | 145,040 | 162,212 | 180,776 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Retained earnings | 105,788 | 113,913 | 128,724 | 145,846 | 170,683 | S100R30N, S100TNK2, S100VYJS, S100YDOU |
| Treasury stock | -7,750 | -7,567 | -7,307 | -8,408 | -15,802 | S100R30N, S100TNK2, S100VYJS, S100YDOU |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 11% | S100YDOU |
| Inventories | 1% | S100YDOU |
| Property, plant and equipment | 6% | S100YDOU |
| Intangibles and goodwill | 4% | S100YDOU |
| Investment securities | 17% | S100YDOU |
| Other assets | 61% | S100YDOU |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 44% | S100YDOU |
| Equity | 56% | S100YDOU |
| Other liabilities | 0% | S100YDOU |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 300,736 | 313,391 | 340,106 | 334,949 | 381,823 |
| Equity | 136,897 | 147,165 | 167,231 | 184,283 | 215,056 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 56,867 | 69,971 | 49,064 | 41,364 | 42,537 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 5.6% | S100YDOU |
| Fixed assets ÷ total assets | 6.2% | S100YDOU |
| Goodwill ÷ parent equity | 1.5% | S100YDOU |

Goodwill over 4 years: 1,920 → 2,696 JPY; total investing cash flow: -25,733 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 11.1% |
| Cash ÷ revenue | 10.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 62.3% |
| Cash vs. profit gap | -7,745 JPY mn (of net income -20.7%) |
| Shareholder returns / net income | 55.6% |
| Shareholder returns / FCF | 84.5% |
| Shareholder payments — dividends / net income | 33.7% |
| Shareholder payments — dividends / FCF | 51.2% |
| CapEx intensity (capex ÷ revenue) | 1.2% |
| Investing CF relative to operating CF | 39.8% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 3.8% | 1.01× | 3.8% | 2.43× | 9.3% | S100R30N |
| 2023 | 3.6% | 1.10× | 4.0% | 2.40× | 9.6% | S100TNK2 |
| 2024 | 5.4% | 1.11× | 6.0% | 2.36× | 14.1% | S100VYJS |
| 2025 | 7.2% | 1.13× | 8.2% | 2.20× | 18.0% | S100YDOU |
| 2026 | 8.8% | 1.18× | 10.5% | 2.09× | 21.8% | S100YDOU |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 10.6% | 2026-03-31 |
| 日本生命保険相互会社 （常任代理人 日本マスタートラスト信託銀行株式会社） | Major shareholder | 6.8% | 2026-03-31 |
| ＳＴＡＴＥ ＳＴＲＥＥＴ ＢＡＮＫ ＡＮＤ ＴＲＵＳＴ ＣＯＭＰＡＮＹ ５０５００１ （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 5.5% | 2026-03-31 |
| 高砂熱学従業員持株会 | Major shareholder | 4.7% | 2026-03-31 |
| 高砂共栄会 | Major shareholder | 4.0% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 4.0% | 2026-03-31 |
| 第一生命保険株式会社 （常任代理人 株式会社日本カストディ銀行） | Major shareholder | 3.2% | 2026-03-31 |
| 株式会社京王閣 | Major shareholder | 1.5% | 2026-03-31 |
| 株式会社みずほ銀行 （常任代理人 株式会社日本カストディ銀行） | Major shareholder | 1.4% | 2026-03-31 |
| 三和工業株式会社 | Major shareholder | 1.2% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue grew +11.1% to ¥423.9B.
- Operating income grew far faster: +47.3%, from ¥32.4B to ¥47.7B.
- In short, Takasago kept more from each project it built.
- Cash caught up too, with operating cash flow rising from a thin ¥5.88B to ¥29.7B.

### Drivers

- Sites ran on schedule under a leaner construction setup.
- The company pushed for better margins both at the bidding stage and on site.
- Finished projects included Rapidus's chip plant and a new building at Mitsubishi Electric's power-device factory.

### Risks

- Ducts, piping, refrigerants and chillers can jump in price or arrive late; if contracts don't absorb that, costs overrun.
- Overtime tends to pile onto a few engineers in busy periods, which can drive people out and shrink how much work the company can take on.
- If Takasago or its subcontractors run short of skilled workers and miss deadlines, revenue slips.

Cited: Annual Securities Report (146th term) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report (146th term) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第146期(2025/04/01－2026/03/31) | S100YDOU | 2026-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YDOU,, |
| 有価証券報告書－第145期(2024/04/01－2025/03/31) | S100VYJS | 2025-06-17 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VYJS,, |
| 有価証券報告書－第144期(2023/04/01－2024/03/31) | S100TNK2 | 2024-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TNK2,, |
| 有価証券報告書－第143期(2022/04/01－2023/03/31) | S100R30N | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R30N,, |
| 有価証券報告書－第142期(令和3年4月1日－令和4年3月31日) | S100OAYB | 2022-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OAYB,, |
| 有価証券報告書－第141期(令和2年4月1日－令和3年3月31日) | S100LL2N | 2021-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LL2N,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).