Kinden (1944) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 11.5% YoY to ¥358.2bn; operating profit rose 32.0% to ¥42.0bn and parent-attributable profit rose 38.8% to ¥31.3bn.

• Results exceeded all announced semi-annual forecasts, supported by improved productivity and cost reduction efforts.

Financial highlights

• Ordinary profit increased 25.4% YoY to ¥42.6bn; basic EPS was ¥175.13 versus ¥113.87.

• Gross profit on completed construction contracts was ¥86.2bn versus ¥71.0bn; SG&A was ¥44.3bn versus ¥39.2bn.

• Profit before income taxes included ¥4.6bn gain on sale of investment securities and ¥112m loss on step acquisitions.

Outlook and guidance

• FY2027 consolidated forecast: net sales ¥850bn, operating profit ¥105bn, ordinary profit ¥105bn, parent-attributable profit ¥75bn and EPS ¥435.50; forecasts revised upward.

• FY2027 non-consolidated construction orders forecast raised to ¥750bn from ¥680bn; completed-contract net sales forecast is ¥680bn.

• FY2027 dividends forecast at ¥240 per share, including ¥50 special dividends at both Q2 and year-end, tied to medium-term plan and growth targets.

• Forecasts reflect improved non-consolidated profitability and THE KODENSHA’s expected October–March results following consolidation.