Business Engineering (4828) Q2 2027 earnings summary

Executive summary

• FY26 1H sales and all profit indicators reached semi-annual record highs for the ninth consecutive year; sales rose 9.9% and operating profit 12.2%.

• Full-year forecasts remain unchanged, with progress toward sales and operating profit targets.

Financial highlights

• 1H net sales were ¥13,492m (+9.9% YoY), gross profit ¥6,705m, and operating profit ¥3,782m (+12.2%).

• Ordinary profit rose 12.3% to ¥3,810m; parent-attributable profit rose 2.0% to ¥2,539m, and orders received increased 12.7% to ¥13,529m.

• Gross margin was 49.7% versus 45.8% YoY; operating margin was 28.0% versus 27.4%.

• Five newly consolidated overseas subsidiaries contributed ¥630m to 1H sales, ¥170m to operating profit and ¥119m to net profit.

Outlook and guidance

• FY26 forecast unchanged: sales ¥26,800m (+9.6%), operating profit ¥6,900m (+7.6%) and parent-attributable profit ¥4,600m (-5.9%).

• FY26 forecast gross margin is 48.1%, operating margin 25.7%, ROE 26.3%, and orders received target ¥27,000m (+9.8%).

• Annual dividend forecast remains ¥42 per share, including ¥21 at year-end; payout ratio forecast is 54.5%.

• FY26 consolidation scope is forecast to add ¥1,200m to sales, ¥200m to operating profit and ¥150m to net profit.