Carlit (4275) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales declined 1.8% YoY to ¥17,452 million and operating profit fell 32.0% to ¥1,023 million, while profit attributable to owners of parent rose 36.3% to ¥1,566 million.

• Results were generally in line with plan, but beverage bottling orders and production fell short of plan amid unfavorable weather in August and September.

• Full-year guidance remains unchanged; investments to expand ammonium perchlorate production and renovate the beverage line are progressing as planned.

Financial highlights

• H1 net sales were ¥17,452 million, down 1.8% YoY; operating profit was ¥1,023 million, down 32.0%, and ordinary profit was ¥1,145 million, down 30.9%.

• Profit attributable to owners of parent increased 36.3% to ¥1,566 million, supported by ¥1,140 million in gains on sale of investment securities.

• Gross profit declined to ¥4,229 million from ¥4,459 million; SG&A expenses increased to ¥3,205 million from ¥2,954 million.

• Operating cash flow was ¥2,431 million; investing cash outflow was ¥219 million and financing cash outflow was ¥670 million. Cash and cash equivalents ended H1 at ¥5,395 million.

Outlook and guidance

• FY2027 guidance: net sales ¥37,200 million (+2.6% YoY), operating profit ¥3,200 million (-7.5%), ordinary profit ¥3,300 million (-12.1%), and parent-attributable profit ¥3,000 million (+0.8%).

• Full-year basic EPS is forecast at ¥133.61; annual dividends are forecast at ¥42 per share, with no revision to either forecast.

• Chemical Products demand is expected to remain strong overall, with electronic materials supporting performance; material assessment services are expected to remain sluggish as EV market development slows.

• Bottling sales and profit are expected to decline significantly due to the April–December production-line renovation; weather conditions are expected to stabilize from Q3 on seasonal factors.

• Metal Working and Engineering Services are expected to remain solid; forecasts factor in cost-reduction efforts and continued price adjustments where appropriate.