Hazama Ando (1719) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 13.4% YoY to ¥228.0bn; operating profit increased 54.5% to ¥18.7bn and attributable profit rose 84.4% to ¥14.3bn.

• Building construction drove profit growth, with segment operating profit up 78.3% YoY; civil engineering profit declined 6.2%.

• FY2027 guidance was revised: revenue to ¥480.0bn, while operating profit, ordinary profit and attributable profit targets increased to ¥37.6bn, ¥38.8bn and ¥26.9bn.

Financial highlights

• H1 net sales were ¥228,016m, up 13.4% YoY; gross profit was ¥34,646m, up 27.9%, and operating profit was ¥18,651m, up 54.5%.

• Ordinary profit increased 77.1% YoY to ¥20,054m; profit attributable to owners of parent rose 84.4% to ¥14,299m; basic EPS was ¥91.13.

• Comprehensive income was ¥18,484m, nearly unchanged from ¥18,468m a year earlier, as other comprehensive income fell to ¥4,183m from ¥10,715m.

• Operating cash flow was ¥14,834m versus ¥10,784m a year earlier; cash and cash equivalents ended H1 at ¥77,738m, up ¥13,146m from the fiscal-year start.

Outlook and guidance

• Revised FY2027 consolidated forecast: revenue ¥480,000m, operating profit ¥37,600m, ordinary profit ¥38,800m, attributable profit ¥26,900m and EPS ¥171.40; YoY changes are +9.2%, +11.8%, +16.7% and -9.6% for the respective profit measures.

• Versus prior guidance, revenue was cut ¥10,000m (-2.0%); operating profit increased ¥3,600m (+10.6%), ordinary profit ¥5,200m (+15.5%) and attributable profit ¥4,700m (+21.2%).

• Building construction profitability improvements are expected to more than offset lower civil engineering gross profit; equity-method earnings recognized in H1 also lifted the ordinary profit forecast.

• FY2027 annual dividend forecast is ¥84 per share, up from ¥80 for FY2026; no dividend forecast revision was made.