CTI Engineering Co (9621) investor relations material

Executive summary

• Orders received increased by 11.7% year-over-year to 60,917 million yen, driven by strong domestic and overseas demand in core and growth areas.

• Sales remained steady at 50,794 million yen, nearly matching the same period last year.

• Operating income declined 12% year-over-year to 5,976 million yen, mainly due to higher SG&A expenses and cost of sales deterioration.

• Net income attributable to owners fell 22.6%–23% year-over-year to 3,779 million yen, impacted by extraordinary losses such as impairment of idle assets and waivers of claims.

• Dividend forecast maintained at 75 yen per share, with a payout ratio of 33.1%.

Financial highlights

• Orders received: 60,917 million yen (+11.7% YoY); sales: 50,794 million yen (+0.1% YoY).

• Operating income: 5,976 million yen (-12.0% YoY); ordinary profit: 6,034 million yen.

• Net income attributable to owners: 3,779 million yen; net income per share: 136.11 yen (post-split).

• Progress rates: 60% for orders and income, 50% for sales versus full-year forecast.

• Operating income margin: 11.8% (down from 13.4% YoY).

Outlook and guidance

• Full-year sales and profits expected to increase as planned, but net income forecast revised downward by 600 million yen to 6,300 million yen due to extraordinary losses.

• Orders, sales, and operating income forecasts remain unchanged.

• Carryover order backlog at Q2 end increased by 8% year-over-year.

• Group launched Mid-Term Management Plan 2027, focusing on business portfolio transformation and foundation rebuilding.