Okumura (1833) investor relations material

Executive summary

• H1 FY2027 net sales fell 5.4% YoY to ¥143,070m; operating profit declined 11.2% to ¥8,574m and parent-attributable profit fell 26.3% to ¥7,329m.

• Civil Engineering improved, while Building contracted after prior-year project completions; sluggish bioenergy operations and maintenance costs widened Infrastructure Management and Other’s operating loss.

Financial highlights

• Gross profit was ¥20,091m, nearly flat YoY; SG&A rose to ¥11,517m from ¥10,503m.

• Ordinary profit fell 34.3% to ¥8,522m from ¥12,971m, partly reflecting weaker FX-related results and forward-contract valuation losses.

• Parent-attributable profit was ¥7,329m versus ¥9,950m; basic EPS was ¥204.25 versus ¥277.35.

• H1 special gains included ¥1,800m from fixed-asset sales and ¥500m from sales of two listed shares; fixed-asset retirement losses were also recorded.

Outlook and guidance

• FY2027 consolidated sales forecast rose to ¥306,600m; operating profit of ¥20,500m, ordinary profit of ¥20,700m and parent profit of ¥15,400m remain unchanged.

• Consolidated basic EPS forecast is ¥427.62; forecast operating profit growth is 28.7% YoY.

• Non-consolidated forecasts rose to sales of ¥294,600m, operating profit of ¥23,000m, ordinary profit of ¥23,400m and profit of ¥16,300m; construction gross margin forecast increased to 14.8% from 13.9%.

• Forecast assumes Ishikari Bio Energy returns to normal operations after statutory inspections in mid-November; Middle East impacts are excluded and could pressure earnings.

• FY2027 annual dividend forecast remains ¥300 per share: ¥150 interim and ¥150 year-end.