West Holdings (TSE: 1407), a solar contractor and developer, reported operating profit of ¥12.99bn for the year to August 2026, up 50.3%, on sales of ¥56.65bn, up 19.9%. Profit attributable to owners of the parent rose 50.1% to ¥8.04bn. The mix changed more than the total: grid-scale battery storage, which the company began in earnest in the year to August 2025, produced the largest segment profit.
Storage replaces development
The storage segment's sales rose 280.4% to ¥21.73bn and its operating profit rose 462.1% to ¥8.42bn. A year earlier the renewable-energy segment led, with ¥4.55bn of operating profit against ¥1.50bn for storage. This time the renewable segment's operating profit fell 52.4% to ¥2.17bn on sales down 24.7% to ¥24.76bn. The company reports segment profit before corporate cost adjustments.
| Segment | Sales | Operating profit | Prior-year operating profit |
|---|---|---|---|
| Storage | ¥21.73bn | ¥8.42bn | ¥1.50bn |
| Renewable energy | ¥24.76bn | ¥2.17bn | ¥4.55bn |
West Holdings attributes the solar decline to non-FIT plant development. Many of those projects were due to start supplying power from April 2026, handovers ran below plan through the third quarter, and a faster fourth quarter still left the full year under the initial plan. Some projects also earned less. The company said it is not starting new ground-mounted mega-solar development and is working only on projects it had already prepared. Its self-consumption solar contracting business, which does not rely on feed-in tariffs or subsidies, was described as progressing well in orders and completions.
Applications are not stations
West Holdings said its grid-connection consultation applications exceeded 1,600 at the end of August 2026, with the general transmission and distribution operator in each utility area reviewing them. That is a count of applications under review, not of batteries built or operating.
From 1 August 2026, a rule took effect that caps the number of grid-battery connection studies per operator. West Holdings said it will keep pursuing the applications it has already filed and will examine its existing pipeline for connection feasibility and commercial viability before pushing projects toward development. The report does not say how many applications it expects to turn into projects or how many the cap affects.
Storage segment assets reached ¥27.20bn, against ¥8.30bn a year earlier. The company also plans special-high-voltage storage stations on sites of solar plants it owns, to add holding and operating income to its sales-based revenue.
Outlook and cash
For the year to August 2027, West Holdings forecasts sales of ¥70.41bn (up 24.3%), operating profit of ¥15.6bn (up 20.1%) and attributable profit of ¥9.38bn (up 16.6%). It forecasts an annual dividend of ¥70 per share, the same as the ¥70 annual dividend for the year just ended, whose year-end payment is scheduled to begin on 26 November 2026.
Cash conversion trailed profit. Operating cash flow was ¥7.23bn, and balances owed on completed construction work rose ¥6.71bn to ¥31.25bn. The annual shareholders' meeting is scheduled for 25 November 2026, and the securities report is due on 24 November.