Toho boosts forecast on strong performance, announces share buyback

Toho Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending February 2026. Operating revenue is now projected at 360,000 million yen (up 20.0% from previous forecast), operating profit at 65,000 million yen (up 14.0%), ordinary profit at 65,500 million yen (up 19.1%), and profit attributable to owners of parent at 47,500 million yen (up 9.2%). This revision is primarily attributed to the record-breaking success of films like "Demon Slayer: Kimetsu no Yaiba Infinity Castle" and "KOKUHO" in the first half of the fiscal year, complemented by robust performance in IP & Anime, Theatrical, and Real Estate businesses.

The company also announced a treasury share acquisition and tender offer, with an upper limit of 2,000,000 shares (1.18% of issued shares) and a total acquisition cost of up to 17,564,878,200 yen. This buyback, running from October 16, 2025, to November 13, 2025, aims to enhance shareholder returns and improve capital efficiency (EPS and ROE). The tender offer price is set at 8,782 yen per share, representing a 10% discount from the October 14, 2025 closing price.

Additionally, Toho's domestic distribution film business set a new annual box office record at 132.8 billion yen for January to September 2025. The company also reached an agreement with Warner Bros. Motion Picture Group for domestic theatrical distribution of foreign films in Japan, starting in 2026. Toho reaffirmed its shareholder return policy, targeting a dividend payout ratio of 35% or more with a minimum annual dividend of 85 yen per share, and flexible share buybacks.