Gas sector: FY3/26 results review

Research evidence excerpt

Gas sector: FY3/26 results review

12 May 2026

Mizuho Securities Equity Research Utilities / Gas

Industry Overview

In line and no surprises: upbeat on ROE focus and elevated shareholder returns

Senior Analyst: Summary

Norimasa Shinya The three major city gas companies, Tokyo Gas (9531), Osaka Gas (9532),

+81 3 6202 8313 and Toho Gas (9533), reported 4Q FY3/26 results between 28 April and 8 May.

norimasa.shinya@mizuho-sc.com Earnings-related announcements were broadly in line with expectations. For

shareholder returns, Tokyo Gas announced a ¥50b share buyback (with anAnalyst:

acquisition period of roughly six months), while Osaka Gas announced a ¥80bKanato Isobe

share buyback (roughly one year). Although these disclosures were broadly+81 3 6202 8140

kanato.isobe@mizuho-sc.com in line with our expectations, we were left with a positive impression of both

companies’ ongoing efforts to maintain high levels of shareholder returns as

they focus on ROE targets. There were no big differences in our impressions

between Tokyo Gas and Osaka Gas. However, in terms of earnings relative to

our forecasts, Tokyo Gas delivered somewhat stronger earnings upside, while

shareholder returns at both companies were in line with our assumptions.

Earnings trends: comparison of 4Q FY3/26 earnings and full-year

guidance with our forecasts

Earnings in 4Q FY3/26 (see Figures 1 and 2) at all three city gas firms came

in slightly above our forecasts, with no major differences among the three.

Deviations between each of the companies’ FY3/27 earnings outlooks and

our assumptions were limited and thus in line with expectations. Tokyo Gas

was the only company to release guidance that was higher than our outlook.

By segment, a notable trend across sector companies is the expectations for