BIPROGY (8056) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue fell 2.0% YoY to ¥201.1bn and operating profit declined 20.0% to ¥17.1bn as hardware/software weakness and higher SG&A outweighed system-services growth; orders and backlogs rose strongly.

• FY2027 guidance remained unchanged, supported by strong IT investment demand and revenue recognition expected to be weighted toward H2.

Financial highlights

• H1 revenue was ¥201,130m vs ¥205,132m YoY; gross profit was ¥53,713m vs ¥53,736m.

• Operating profit was ¥17,072m vs ¥21,350m; adjusted operating profit was ¥16,704m, down 19.1%, with adjusted operating margin of 8.3%, down 1.8pt.

• Profit attributable to owners of parent was ¥11,150m vs ¥15,323m, down 27.2%; H1 basic EPS was ¥115.41 vs ¥156.60.

• Q2 revenue rose 1.3% YoY to ¥109.7bn, while operating profit fell 15.0% to ¥10.9bn and parent-attributable profit fell 25.5% to ¥7.1bn.

• SG&A rose 11.8% to ¥37.0bn on personnel, internal-system and AI-related costs; prior-year one-time equity-method affiliate income also weighed on the comparison.

Outlook and guidance

• FY2027 forecast unchanged: revenue ¥470.0bn, gross profit ¥128.0bn, operating profit ¥48.4bn, profit before tax ¥48.0bn and parent-attributable profit ¥32.2bn.

• Forecast operating margin is 10.3%; adjusted operating profit is ¥48.4bn with a 10.3% margin.

• Revenue plus order backlog scheduled for FY2027 recognition reached ¥360.2bn at H1, 76.6% of forecast revenue, up 1.9pt YoY in progress rate.

• Of ~¥6.0bn deferred from Q1 due to core-system renewal, ¥4.6bn was recognized in Q2 and ~¥1.4bn is scheduled for Q3; resolution within FY is expected with no forecast impact.