TOHO GAS CO., LTD.
9533・Prime Market・Electric Power & Gas
Gas
The core business of the Toho Gas Group. City gas manufacturing and sales based in Aichi, Mie, and Gifu.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (full year) | ¥426,585 million | ¥429,299 million | ↓ |
| Segment operating income (full year) | ¥19,210 million | ¥20,549 million | ↓ |
| Gas sales volume (full year) | 3,300 million m³ | 3,350 million m³ | ↓ |
| Number of customers at period end (Gas) | 1,759 thousand | 1,750 thousand | ↑ |
| Segment assets | ¥453,183 million | ¥445,100 million | ↑ |
Business Details
Toho Gas Co., Ltd. manufactures, sells, and sells appliances for gas in Aichi, Mie, and Gifu prefectures, while Toho Gas Network Co., Ltd. handles transportation supply and pipeline construction, Toho Gas Life Solutions Co., Ltd. handles outsourced sales to residential customers, and Mizushima Gas Co., Ltd. operates a gas business in Okayama Prefecture. This is the Group's core segment, accounting for approximately 65% of consolidated net sales, with a broad customer base spanning residential and commercial users. The structure is such that timing differences in the raw material cost adjustment system are the main driver of earnings fluctuations.
Recent Overview
Both sales and operating income declined year on year due to lower commercial sales volume and higher costs.
In FY2026 (ending March 2026), Gas segment sales were ¥426,585 million (down 0.6% year on year), and operating income was ¥19,210 million (down 6.5% year on year). Gas sales volume was 3,300 million m³ (down 1.5% year on year), mainly due to a 1.7% decrease in commercial and other sales caused by lower equipment utilization at customer sites. On the other hand, at the consolidated level, the expansion of the timing-difference gain from the raw material cost adjustment system between raw material costs and sales contributed to an increase in ordinary income, but for the Gas segment alone, increased costs such as supply and sales expenses squeezed profit. Crude oil prices averaged $71.4/barrel (down $11.0 year on year), and the exchange rate averaged ¥150.7/dollar (up ¥1.9 year on year).
Key Products
Growth Drivers
- Expansion of the timing-difference gain from the raw material cost adjustment system (the main driver of the increase in consolidated ordinary income)
- Gradual increase in the number of city gas customers (1,759 thousand at the end of FY2026 (ending March 2026), up 9 thousand from the end of the prior period)
- Capturing fuel-switching demand and proposing advanced utilization to commercial customers
- Fixed cost efficiency through DX promotion and use of advanced technology (as stated in the medium-term management plan)
- Strengthening the future business foundation through expanded investment for the next fiscal year (FY2027 (ending March 2027)) (plan of ¥87.0 billion, up 46.7% year on year)
Risks
- Risk of timing-difference losses arising from the raw material cost adjustment system (earnings can fluctuate significantly depending on crude oil prices and exchange rate trends)
- Decline in commercial and other gas sales volume (due to lower equipment utilization at customer sites; down 1.7% year on year in FY2026 (ending March 2026))
- Fluctuations in crude oil prices and exchange rates (assumptions for next fiscal year's earnings forecast: crude oil at $100/barrel, exchange rate at ¥160/dollar)
- Fluctuations in residential demand due to temperature variation (average temperature of 17.7°C, roughly the same as the prior period, but risk from hot summers, etc.)
- Long-term structural decline risk in natural gas demand as carbon neutrality policies advance
- For the next fiscal year (FY2027 (ending March 2027)), operating income is forecast to decline sharply by 40.2% year on year to ¥19,000 million
Last updated: June 23, 2026