Hibiya Engineering (1982) Q2 2027 earnings summary

Executive summary

• H1 orders reached ¥92,739 million, up 100.3% YoY, driven by large data-center and office-building projects.

• Net sales declined 4.0% to ¥38,936 million, while operating profit rose 33.0% to ¥4,807 million and parent-attributable profit rose 26.5% to ¥3,584 million.

• Consolidated backlog increased ¥65.5bn YoY to ¥156.9bn, supporting an expected H2 sales ramp, particularly from data-center projects.

Financial highlights

• H1 gross profit rose 19.9% to ¥9,766 million from ¥8,142 million; gross margin reached 25.1%, up 5.0 points YoY.

• Operating profit increased to ¥4,807 million from ¥3,615 million; operating margin was 12.3%, up 3.4 points YoY.

• Ordinary profit rose 31.0% to ¥5,236 million; parent-attributable profit increased 26.5% to ¥3,584 million.

• Basic EPS was ¥86.03 versus ¥65.07, reflecting the 2-for-1 stock split effective April 1, 2026.

• Comprehensive income declined to ¥1,694 million from ¥4,664 million as securities valuation OCI swung to a ¥1,929 million loss from a ¥1,800 million gain.

Outlook and guidance

• FY3/2027 forecasts remain unchanged: orders ¥130.0bn, net sales ¥105.0bn, operating profit ¥11.0bn, ordinary profit ¥11.8bn and parent-attributable profit ¥8.7bn.

• Full-year basic EPS guidance is ¥202.00; gross profit is forecast at ¥23.1bn with a 22.0% margin, and ROE at 11.2%.

• Backlog scheduled for FY3/2027 recognition plus H1 sales was ¥93.0bn, covering 88.6% of the ¥105.0bn consolidated sales target.

• FY3/2029 medium-term targets include orders of ¥120.0bn, net sales of ¥113.0bn, operating profit of ¥12.5bn, parent-attributable profit of ¥9.5bn and ROE in the 12% range.