Computer Engineering & Consulting (9692) Q2 2027 earnings summary

Executive summary

• Net sales and operating income for the second quarter grew 13.7% and 20.5% year-over-year, respectively, both reaching record highs, driven by robust ICT investment, systems, infrastructure development, and security services.

• Net income attributable to owners of parent increased 20.9% to 2,883 million yen.

• Orders received increased 20.5% year-over-year on an existing basis, excluding large-scale projects.

• Interim dividends were increased, and a share buyback of up to 2 billion yen is planned, with retirement of acquired shares scheduled for fiscal year-end.

• Comprehensive income reached 2,844 million yen, up 18.0% year-over-year.

Financial highlights

• Net sales rose to 35,080 million yen (+13.7% YoY), operating income to 4,160 million yen (+20.5% YoY), and net income attributable to owners of parent to 2,883 million yen (+20.9% YoY).

• Gross profit increased to 9,360 million yen, and gross profit margin improved to 26.7% (+0.3pt YoY).

• Operating income margin increased to 11.9% (+0.7pt YoY).

• Orders received reached 42,861 million yen, and order backlog was 28,181 million yen.

• Cash and cash equivalents at period-end were 26,405 million yen, up 1,205 million yen from the previous year.

Outlook and guidance

• Full-year forecasts were revised upward: net sales expected at 70,500 million yen (+7.0% YoY), operating income at 8,320 million yen (+13.4% YoY), and net income at 5,900 million yen (+13.4% YoY).

• Net income per share is forecast at 191.01 yen.

• Growth investments in HR, R&D, M&A, and capital are progressing as planned, despite some delays.