Aichi Steel (5482) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue reached a record ¥162,572m, up 8.5% YoY; operating profit fell 16.5% to ¥7,336m and parent-attributable profit fell 5.5% to ¥5,299m.

• FY2027 operating profit and parent-attributable profit guidance was reduced to ¥15,000m and ¥10,000m, respectively, amid expected further purchased-material cost increases in H2.

Financial highlights

• H1 operating profit exceeded the July forecast by ¥1,300m as operating gains and cost improvements outweighed higher purchased-material costs.

• Gross profit was ¥21,798m versus ¥23,297m YoY; SG&A increased to ¥14,026m from ¥13,857m.

• Profit before tax declined 13.3% to ¥8,071m; total profit was ¥6,175m versus ¥6,376m YoY.

• Operating cash flow swung to an outflow of ¥6,935m from an inflow of ¥27,741m in the prior-year period.

Outlook and guidance

• FY2027 forecast revenue rose from ¥310,000m to ¥330,000m; operating profit was cut from ¥17,500m to ¥15,000m and parent-attributable profit from ¥11,300m to ¥10,000m.

• Forecast standalone sales volume is 1,030 thousand tonnes, up 5% YoY, versus the prior forecast of 1,022 thousand tonnes.

• Annual dividends are forecast at ¥142 per share: ¥75 for the second quarter and ¥67 year-end, including ¥39 special dividends in each; regular dividends total ¥64, down from prior guidance of ¥72.

• Forecast basic EPS is ¥156.18.