Buffalo (6676) Q2 2027 earnings summary

Executive summary

• H1 consolidated revenue fell 8.2% YoY to ¥55,149m; operating profit rose 4.3% to ¥5,788m, while net income declined 6.2% to ¥4,331m.

• Continuing operations grew revenue 8.7% to ¥54,778m and operating profit 79.3% to ¥5,617m, offset by the sharp contraction in Airdog sales after its domestic distribution agreement ended.

• Strategy focuses on IT-related businesses and Value Chain Engineering (VCE), with a consolidated ROE target of at least 15%.

Financial highlights

• H1 ordinary profit was ¥5,788m, up 2.6% YoY; comprehensive income was ¥3,820m, down 22.2%.

• Continuing-business revenue exceeded the initial plan by ¥41bn and operating profit by ¥16bn.

• Operating cash flow was ¥660m; cash and equivalents ended H1 at ¥27,037m.

Outlook and guidance

• FY2027 guidance: revenue ¥111,000m (-5.4%), operating profit ¥8,600m (-6.8%), ordinary profit ¥8,500m (-16.8%) and net income ¥6,200m (-23.2%); forecast unchanged.

• Continuing-business FY revenue is forecast at ¥1,104bn (+3.7%) and operating profit at ¥85bn (+28.6%); H1 progress was 49.6% and 66.1%, respectively.

• HDD and SSD component procurement costs are expected to rise sharply in H2; yen weakness versus the ¥155/$ forecast is also expected to pressure profit.

• FY2030 targets for continuing business plus VCE: revenue ¥1,300–1,500bn, operating profit at least ¥100bn, net income at least ¥70bn and consolidated ROE of 15–20%.