eGuarantee (8771) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 2.7% YoY to ¥5,635 million; operating profit increased 3.5% to ¥2,601 million, and profit attributable to owners of parent rose 6.5% to ¥1,853 million.

• Guarantee liabilities reached a record ¥954.9 billion, up 9.9% YoY; strategy prioritizes improving guarantee fee rates over maximizing contract volume and renewals.

• FY2027 forecasts remain unchanged at net sales of ¥11,900 million and profit attributable to owners of parent of ¥3,800 million.

• Sales-force expansion and young-salesperson productivity are progressing, while operational systems and management capacity remain execution priorities.

Financial highlights

• Net sales were ¥5,635 million versus ¥5,488 million YoY; gross profit rose to ¥4,145 million from ¥3,979 million.

• Gross margin rose 1.1 percentage points YoY to 73.6%; SG&A increased 5.2% to ¥1,543 million, reflecting higher headcount and base salaries.

• Operating profit was ¥2,601 million, up 3.5%, with a 46.2% margin; ordinary profit was ¥2,754 million, up 7.2%.

• Profit attributable to owners of parent increased to ¥1,853 million from ¥1,740 million; basic EPS was ¥41.58 versus ¥36.83.

• Comprehensive income was ¥1,859 million, up 5.1% YoY.

Outlook and guidance

• FY2027 forecasts: net sales ¥11,900 million, operating profit ¥5,500 million, ordinary profit ¥5,600 million and profit attributable to owners of parent ¥3,800 million; forecasts were unchanged.

• Six-month achievement rates were 47.3% for sales and operating profit, 49.2% for ordinary profit and 48.8% for profit; ordinary profit is expected to meet the full-year forecast for the 20th consecutive fiscal year.

• FY2027 annual dividend forecast is ¥84 per share, including a ¥42 second-quarter dividend; payment is scheduled to commence December 4, 2026.

• Medium-term business-plan financial targets remain delayed by 1.5 years, reflecting delays in implementing key initiatives.