Business Brain Showa-Ota (9658) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 4.5% YoY to ¥21,321 million; operating profit fell 19.2% to ¥1,205 million amid higher SG&A and cost pressures.

• Orders declined 1.7% YoY to ¥20,688 million, and backlog fell 5.3% to ¥12,912 million.

Financial highlights

• Gross profit increased 3.4% to ¥4,649 million; SG&A rose 14.7% to ¥3,504 million, reflecting AI use and R&D for ACT-Horizon.

• Profit before tax declined 13.0% to ¥1,718 million; profit attributable to owners of parent fell 12.4% to ¥1,076 million.

• Finance income fell to ¥70 million from ¥294 million, while share of profit from equity-method investments rose to ¥545 million from ¥250 million.

• Q2 revenue was ¥10,516 million versus ¥10,358 million a year earlier; business profit was ¥906 million versus ¥843 million.

Outlook and guidance

• FY2027 guidance was unchanged: revenue ¥43,600 million, operating profit ¥3,430 million, and profit attributable to owners of parent ¥2,848 million.

• Full-year basic EPS forecast was ¥87.76 after retrospective adjustment for the 3-for-1 stock split effective April 1, 2026; the FY2027 dividend forecast remained ¥47.00 per share post-split.

• BBS2026 is in its final year; its initial plan will be revised, with upfront R&D investment in AI, a renewed standard methodology, and ACT-Horizon development.