Toho revises forecast upward, announces share buyback

Toho Co. Ltd. (TSE:9602) has revised its full-year earnings forecast for the fiscal year ending February 2026, citing exceptional performance in its film and IP businesses. The company now expects net sales of JPY360,000 million (previously JPY300,000 million), operating income of JPY65,000 million (previously JPY57,000 million), and ordinary income of JPY65,500 million (previously JPY55,000 million). Net income attributable to owners of the parent is projected at JPY47,500 million (previously JPY43,500 million). This upward revision is primarily attributed to strong box office hits like "Demon Slayer: Kimetsu no Yaiba – The Movie: Mugen Train Chapter 1: Akaza's Reincarnation" and "National Treasure," along with robust growth in IP, animation, theatrical, and real estate segments.

Concurrently, Toho's Board of Directors approved a share buyback program and tender offer for its own shares. The company plans to acquire up to 2,000,100 shares, representing 1.18% of its outstanding shares, at JPY8,782 per share, totaling up to JPY17,564,878,200. The tender offer period will run from October 16 to November 13, 2025. This initiative is part of Toho's mid-term management plan "TOHO Group Mid-Term Management Plan 2028," which aims to enhance shareholder returns through stable dividends and flexible share repurchases, with a target dividend payout ratio of over 35%.

The buyback price represents a 10% discount to the closing price on October 14, 2025. The company will acquire shares from H.T.O. Retailing Co., Ltd., which intends to sell a portion of its holdings. Toho’s management believes this buyback will contribute to improved capital efficiency, including EPS and ROE, and ensure management flexibility.