TOSNET CORPORATION
4754・Standard Market・Services
Business
TosNet Corporation is a security company established in 1977 in Miyagi Prefecture, listed on the Tokyo Stock Exchange Standard Market. The Group consists of 16 consolidated subsidiaries, with its core business being Security Services (approximately 86% of revenue), centered on Traffic Control Security, Facility Security, and Train Lookout Security. In addition, the company operates Temporary Power Supply for Events & Concerts (I・C・C International) and Building Maintenance Services (Bill Cast). In July 2025, the company sold its Mailing Services business, furthering its focus on core operations. Major clients include general contractors and construction companies, office building and factory owners, and event/concert organizers. With locations nationwide from Hokkaido to Okinawa, the company continues to expand into underserved areas through M&A and area strategy.
Business Model
The Security Services segment operates a service model that deploys qualified security guards at customer sites, managing gross profit margin as a key KPI through order pricing negotiations and improving the ratio of qualified personnel. The Power Supply Services segment employs a high-margin model (segment profit margin of 32.3%) based on owning and operating temporary power supply equipment, and pursues integrated orders for large-scale events and concerts through synergies with the Security Services segment. The company expands its subsidiaries through M&A and pursues economies of scale by sharing know-how, personnel, and systems across the group.
Company Strengths
Power Supply Services, operated by I.C.C. International, achieved net sales of ¥1,158 million, segment profit of ¥374 million, and a profit margin of 32.3% in FY2025 (ending September 2025). Net sales grew 7.5% and profit grew 15.2% year on year on a consolidated basis, maintaining high growth and functioning as a highly profitable revenue source that complements the labor-intensive Security Services business.
Since its founding in 1977, the company has built a group of 16 consolidated subsidiaries through a combination of M&A and organic establishment. It maintains locations nationwide, from Hokkaido to Okinawa, and has continued active M&A activity up to recently, including making Aiwa Keibi Hosho and NEXT Corporation subsidiaries in 2024. Expanding into underserved regions is positioned as a pillar of its growth strategy.
Against the backdrop of mandatory assignment of certified personnel for road and prefectural road construction security and the enforcement of staffing standards for crowd control security, the company has set a target of having certified personnel account for 80% of all security staff and is promoting the expansion of qualified personnel. In Train Lookout Security, the increase in certified personnel led to a 15.1% year-on-year increase in Q1, demonstrating that certifications directly translate into expanded order-winning opportunities.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods (FY2021-FY2025), the company maintained a trend of increasing revenue and profit, with revenue growing from ¥9,919 million to ¥11,907 million and operating profit growing from ¥742 million to ¥860 million. However, in the interim period of FY2026 (ending September 2026) (October 2025-March 2026), growth decelerated sharply, with revenue of ¥5,613 million (down 6.0% year-on-year) and operating profit of ¥232 million (down 42.8% year-on-year). This was driven by a combination of factors: the loss of revenue following the sale of Mailing Services (July 2025), a decline in revenue from Traffic Control Security, and a decline in revenue from Power Supply Services (down 6.2% year-on-year). Furthermore, the recording of a special commendation payment of ¥300 million caused interim net profit to plunge to ¥52 million (down 80.8% year-on-year). The full-year forecast calls for operating profit of ¥510 million (down 40.7% from ¥860 million in the previous fiscal year), marking the first significant profit decline in five fiscal periods.
Growth Strategy
Under the medium-term management plan VISION for 50 (Step.2), the company is advancing DX, M&A, area expansion, and strengthening of power supply services.
Facility Security has been positioned as a key product for the Group, with aggressive sales expansion focused primarily on the Greater Tokyo area. In the first half of FY2026 (ending March 2026), sales reached ¥1,552 million (up 4.5% year on year), continuing the growth trend and contributing to an improved revenue mix within Security Services.
Positioned as a focus product that also enhances efficiency across other security operations through the strengthening of qualified personnel. In the first half of FY2026 (ending March 2026), sales reached ¥142 million (up 8.6% year on year), continuing the growth trend. The development of qualified personnel is contributing both to competitive differentiation and to the expansion of orders received.
Focus is being placed on expanding orders for Temporary Power Supply for Events & Concerts and Backup Power for TV Station Relay Broadcasting, among others. In the first half of FY2026 (ending March 2026), sales were ¥516 million (down 6.2% year on year) and segment profit was ¥114 million (down 32.5% year on year), reflecting a decline in both revenue and profit as the impact of external environmental changes became evident.
Under a nationwide structure of 16 subsidiaries, the company is pursuing expansion into blank areas through M&A. It maintains ample capacity for further M&A execution, supported by a robust financial base with an equity ratio of 77.5% and cash and cash equivalents of ¥5,112 million (as of the end of March 2026).
The company aims to improve productivity by promoting DX through the full-scale launch of new systems for security operations, HR/payroll, and accounting. This is positioned as a measure to manage personnel cost in a labor-intensive business and to address the aging workforce and recruitment difficulties among security personnel.
Last updated: July 17, 2026