Kandenko (1942) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥351,534 million, up 3.2% YoY; operating profit rose 15.9% to ¥43,920 million and parent-attributable profit increased 10.2% to ¥29,090 million.

• Non-consolidated orders received increased 13.8% to ¥442.1bn, and backlog rose 20.0% to ¥813.2bn.

Financial highlights

• Gross profit on completed construction contracts increased 17.7% to ¥63,668 million; SG&A rose 22.0% to ¥19,747 million.

• Ordinary profit rose 15.6% to ¥45,043 million; profit attributable to owners of the parent increased 10.2% to ¥29,090 million.

• Non-consolidated completed construction contract revenue grew 4.0% to ¥302.6bn, and profit increased 15.3% to ¥26.0bn.

• Comprehensive income was ¥27,204 million versus ¥36,477 million, including a ¥2,699 million loss from valuation differences on available-for-sale securities.

Outlook and guidance

• FY2027 forecast: net sales ¥780,000 million, operating profit ¥90,000 million, ordinary profit ¥90,500 million and parent-attributable profit ¥65,000 million; forecasts were not revised.

• H1 consolidated revenue was 97.4% of forecast; gross profit reached 103.5%, operating profit 101.7% and parent-attributable profit 102.8% of their respective forecasts.

• FY2027 non-consolidated forecast: orders ¥809.0bn, revenue ¥674.0bn, operating profit ¥76.7bn and profit ¥58.7bn; H1 orders reached 105.0% of forecast.

• FY2027 forecast EPS is ¥326.61; forecasts rely on currently available information and reasonable assumptions, and actual results may differ significantly.