Chiyoda (6366) Q1 2027 earnings summary

Executive summary

• Net profit reached 45.9% of the full-year forecast in the first quarter, indicating a strong start, though net sales for the quarter were JPY 86,763 million, down 4.1% year-over-year.

• Major EPC projects in LNG and environmental fields progressed, with minimal impact from Middle East tensions and successful first LNG production at Golden Pass.

• New orders dropped sharply by 76.7% year-over-year to JPY 30,992 million, while order backlog decreased 8.5% year-over-year to JPY 560,896 million.

Financial highlights

• Operating income for FY2026 1Q was JPY 4.7 billion, with a margin of 5.4%.

• Ordinary income was JPY 6.3 billion, and profit attributable to owners of parent was JPY 5.5 billion.

• Gross profit margin remained stable at 10.4% year-over-year, with gross profit at JPY 9,043 million.

• SG&A expenses remained flat at JPY 4.3 billion.

• Comprehensive income for the quarter was JPY 5,489 million, down from JPY 6,361 million in the prior year.

Outlook and guidance

• Full-year forecast maintained: net sales of JPY 340,000 million, operating income of JPY 10,000 million, ordinary income of JPY 14,000 million, and profit attributable to owners of parent of JPY 12,000 million.

• The company remains on track to achieve the full-year new order target of JPY 300 billion, with most orders expected in the second half.

• No change to previously announced guidance.