Archion (543A) Q2 2027 earnings summary

Executive summary

• H1 FY2027 unit sales rose 25% to 128,000, revenue increased 16% to ¥1,226.7bn and operating profit before the bargain purchase gain grew 62% to ¥72.0bn on an unaudited pro forma basis.

• Reported operating profit of ¥297.8bn and attributable profit of ¥270.4bn included a preliminary ¥225.8bn bargain purchase gain; the FY operating profit outlook before the gain remained ¥110bn.

• LEAP launched to advance growth, efficiencies and mid-term plan execution.

Financial highlights

• Revenue rose ¥165.1bn to ¥1,226.7bn; gross profit increased to ¥214.3bn from ¥174.6bn on a pro forma basis.

• Operating profit before the gain was ¥72.0bn versus ¥44.3bn; reported operating profit was ¥297.8bn, including the ¥225.8bn gain.

• Attributable net income excluding the gain was ¥44.6bn, up 34%; reported attributable net income was ¥270.4bn.

• New vehicle revenue rose 21% to ¥744.9bn, service and parts revenue increased 5% to ¥259.2bn, and complementary business revenue grew 12% to ¥222.6bn.

• Free cash flow was ¥53.7bn; basic EPS was ¥98.11 versus ¥12.12 on the adjusted pro forma H1 FY2026 basis.

Outlook and guidance

• FY2027 outlook: 230,000 units, ¥2,425bn revenue, ¥110bn operating profit before the gain and 4.5% operating ROS.

• Forecast attributable profit is ¥296bn, including the gain; underlying attributable net income is ¥70bn, underlying EPS ¥25 and annual DPS ¥8.

• H2 unit sales are expected at 102,000 versus 128,000 in H1; 22,000 of 27,000 annual Indonesian tender units shipped in H1.

• Revised regional sales outlook: Japan 78,000 units, down 2,000 from prior outlook; Southeast Asia 84,000, up 7,000, especially Indonesia non-tender sales and Thailand.

• Underlying ROS is expected at ~4% in H2 versus ~5% in H1, as inflation, seasonal overhead and integration-related R&D and IT costs rise.