Daido Metal (7245) Q2 2027 earnings summary

Executive summary

• H1 FY27 net sales rose 8.4% YoY to ¥73,258 million; operating profit was nearly flat at ¥3,893 million, while parent-attributable profit rose 4.4% to ¥1,755 million.

• Solid demand for automotive engines, ships and power generators supported growth; Marine & Energy and Life increased both sales and profit.

Financial highlights

• Net sales increased ¥5,661 million YoY; operating profit was up ¥1 million to ¥3,893 million.

• Ordinary profit rose 4.9% to ¥3,476 million; basic EPS was ¥37.83 versus ¥35.83 a year earlier.

• Gross profit was ¥17,886 million versus ¥16,782 million; SG&A rose to ¥13,993 million from ¥12,890 million.

• Operating profit benefited from ¥1.08 billion in material-cost price pass-through and ¥0.91 billion in profit improvement, offset by higher material and labor costs and other items.

Outlook and guidance

• FY27 forecast maintained: net sales ¥145,000 million, operating profit ¥9,500 million, ordinary profit ¥9,000 million and parent-attributable profit ¥5,000 million; EPS forecast ¥107.76.

• Forecast operating margin is 6.6%, ordinary income margin 6.2%, net profit margin 3.4% and ROE 6.5%.

• H2 priorities include passing higher costs into selling prices, profitability improvement, cost control and productivity gains; tariff developments remain under review.