Tess Holdings Co.,Ltd.
TES Engineering Inc. Cancels Large-Scale EPC Order for Transmission System Storage: Impact and Outlook
The large-scale EPC contract for the transmission system storage was canceled due to the customer’s business judgment and increased system interconnection costs. Revenue recognition was expected from the fiscal year ending June 2027 onward, but this has already been incorporated in the financial results. There is no current significant disruption to outstanding orders.
Key Figures
- Value of large-scale order: Approximately 4.0 billion yen
- Delivery date: December 2027 (planned)
- Cancellation date: End of August 2026 (planned)
AI要約
Section Heading
This item reports that Tess Engineering, a consolidated subsidiary, has resolved by a board decision to cancel an already announced large-order. The background for the cancellation includes that the customer’s system interconnection cost burden is expected to be significantly higher than anticipated, and the project commencement is protracted. It is stated that the company is not responsible for design, procurement, or construction.
Section 2 Heading
Regarding the outlook, revenue recognition for the cancellation was planned to occur from the fiscal year ending June 2027 through June 2028 as originally scheduled, but this cancellation has already been incorporated in the initial earnings guidance. As for the currently contracted storage EPC projects, increases in construction costs and longer interconnection works have not materialized as reasons for contract cancellation or termination. If any event arises that would significantly affect the performance, it will be disclosed promptly.
Tess Holdings Corporation
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