Aida Engineering (6118) Q2 2027 earnings summary

Executive summary

• H1 FY2027 orders rose 25.0% YoY to ¥39,889m and backlog increased 10.8% from FY2026 year-end to ¥64,697m, while net sales fell 13.2% to ¥33,588m.

• Lower press sales, adverse product mix, reduced capacity utilization and higher SG&A drove sharp profit declines; FY2027 orders guidance rose while operating income guidance was cut.

Financial highlights

• H1 net sales were ¥33,588m, down 13.2% YoY; gross profit was ¥7,108m, down from ¥8,697m, and SG&A rose to ¥6,191m from ¥5,620m.

• Operating income was ¥917m, down 70.2%; ordinary income was ¥1,217m, down 61.5%; net income was ¥805m, down 69.5%.

• H1 EPS was ¥14.84 versus ¥47.46 YoY; diluted EPS was ¥14.81 versus ¥47.39.

• Comprehensive income declined to ¥1,450m from ¥3,592m YoY.

Outlook and guidance

• FY2027 net sales forecast remains ¥80,000m, up 1.7% YoY; orders forecast rose 2.6% from the initial forecast to ¥80,000m, up 14.7% YoY.

• Operating income forecast was cut to ¥4,000m, down 29.8% from the initial forecast; ordinary income is ¥4,400m and net income is ¥3,200m.

• Forecast gross profit was cut 7.7% from the initial forecast to ¥16,700m; gross margin is forecast at 20.9%, down 1.4 points YoY.

• Net sales forecast was maintained despite weaker expected high-speed press sales recognition, supported by customized presses and a weaker-yen assumption; lower margins, utilization and higher SG&A drove profit cuts.

• Forecast EPS is ¥60.18; cash dividends remain forecast at ¥39 per share, unchanged from FY2026.