ARE Holdings (5857) investor relations material

Executive summary

• H1 FY2027.3 operating profit reached a record ¥28,729 million, up 87.4% YoY, supported by higher collection volumes and strong North American refining despite precious-metal prices below initial assumptions.

• FY2027.3 operating profit forecast rose ¥11,000 million to a record ¥52,000 million following first-half performance and current business conditions.

Financial highlights

• H1 revenue was ¥365,164 million, up 53.3% YoY; gross profit was ¥32,491 million versus ¥18,122 million a year earlier.

• Operating profit was ¥28,729 million, up 87.4%; profit before tax was ¥28,675 million, up 106.8%.

• Profit attributable to owners was ¥20,933 million, up 92.9%; basic EPS was ¥243.53 versus ¥141.60.

• Comprehensive income was negative ¥26,158 million versus positive ¥9,834 million a year earlier, largely reflecting negative other comprehensive income.

Outlook and guidance

• FY2027.3 forecasts: revenue ¥700,000 million, operating profit ¥52,000 million, profit before tax ¥51,000 million and profit attributable to owners ¥36,000 million.

• Operating profit forecast increased ¥11,000 million from plan: Precious Metals Recycling +¥2,600 million, North American Refining +¥7,700 million and Others +¥700 million.

• Revised forecast implies basic EPS of ¥422.98; revenue increased ¥20,000 million and operating profit ¥11,000 million versus prior guidance.

• Annual dividend forecast rose to ¥155 per share, comprising ¥75 interim and ¥80 year-end; both were raised by ¥10 per share from previous forecasts, with a 40% target payout ratio.

• Second-half forecast uses updated precious-metal budget prices; actual results may differ materially from forecasts.