Chiyoda (6366) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales fell 7.1% YoY to ¥180,856 million, while operating profit rose 3.3% to ¥16,126 million and parent profit rose 2.5% to ¥18,024 million as gross profit margin improved; one-off factors also supported profit.

• New orders fell 32.7% YoY to ¥107,647 million and backlog declined 13.6% from FY-end to ¥529,610 million.

Financial highlights

• Gross profit rose to ¥25,117 million from ¥24,196 million; SG&A increased to ¥8,990 million from ¥8,580 million.

• Ordinary profit was ¥19,516 million, down 0.4% YoY; parent profit was ¥18,024 million versus ¥17,580 million, while comprehensive income fell to ¥14,293 million from ¥21,227 million.

• Foreign exchange losses increased to ¥931 million from ¥663 million.

• A pension-plan amortization-method change increased operating profit, ordinary profit and profit before income taxes by ¥421 million each versus the prior method.

Outlook and guidance

• FY2027 forecast revised to net sales of ¥400bn, gross profit of ¥46bn, operating profit of ¥26.5bn, ordinary profit of ¥32bn and parent profit of ¥28bn.

• Forecast YoY changes are +19.0% for sales, +67.7% for operating profit, +65.4% for ordinary profit and +66.9% for parent profit; forecast EPS is ¥88.42.

• Sales forecast increased ¥60bn from the prior forecast; operating income rose ¥16.5bn and attributable profit rose ¥16bn.

• New-orders target remains ¥300bn, weighted toward 2H; project development in Japan and overseas is progressing and the target is on track.

• Forecast exchange rate is ¥155/USD; no FY2027 year-end dividend forecast was made, and interim common-stock dividends were ¥0 per share.