INES (9742) Q1 2027 earnings summary

Executive summary

• Revenue/net sales increased 12.7% year-over-year to ¥8,692 million in Q1, driven by progress in municipal system standardization projects.

• Operating loss narrowed significantly to ¥78 million from ¥878 million year-over-year, despite continued investment in standardization development.

• Net loss attributable to owners of parent improved to ¥80 million from ¥618 million year-over-year.

• Comprehensive income turned positive at ¥74 million, compared to a loss of ¥585 million in the prior year.

Financial highlights

• Gross profit nearly doubled year-over-year to ¥1,529 million, with a margin of 17.6%.

• Operating expenses remained stable at ¥1,608 million versus ¥1,645 million year-over-year.

• Ordinary loss improved to ¥60 million from ¥861 million year-over-year.

• EBITDA reached ¥644 million, up ¥1,101 million year-over-year.

• EPS improved to ¥(3.85) from ¥(29.74) year-over-year.

Outlook and guidance

• Full-year revenue/net sales forecast raised to ¥40 billion, up 9.2% from the previous year.

• Operating and ordinary profit both projected at ¥2.5 billion for the fiscal year ending March 31, 2027.

• Net profit forecasted at ¥1.7 billion, with EPS of ¥81.64.

• Annual dividend per share projected to increase by ¥5 to ¥55.