KOA Corporation (6999) Q2 2027 earnings summary

Executive summary

• H1 net sales set a six-month record at ¥43,629 million, up 26.0% YoY; operating profit rose 186.4% to ¥3,739 million.

• Growth reflected China automotive, Asia AI-related equipment, Japanese industrial equipment and distributor demand across Europe, the U.S. and China.

• Phase 2 of the 2027 Medium-Term Management Plan prioritizes profit growth and efficiency through ROIC-based management, portfolio and technology strategies, and organizational enhancement.

Financial highlights

• H1 net sales were ¥43,629 million, operating profit ¥3,739 million, ordinary profit ¥3,983 million and profit attributable to owners of parent ¥5,820 million.

• Q2 net sales reached ¥22.8bn (+27.9% YoY; +9.0% QoQ); operating profit was ¥2.9bn (+258.6% YoY; +239.2% QoQ).

• H1 operating profit benefited from higher sales, yen depreciation and fixed-cost control, despite higher raw material prices.

• Net profit included ¥3,098 million in extraordinary relocation compensation; profit before income taxes was ¥7,037 million and income taxes were ¥1,216 million.

Outlook and guidance

• FY2027 forecast: net sales ¥91,500 million (+26.6% YoY), operating profit ¥8,310 million (+127.9%), ordinary profit ¥8,560 million (+63.9%) and parent-attributable profit ¥9,660 million (+144.5%).

• FY2027 forecast EPS is ¥260.07; operating margin is 9.1% and ROE forecast is 10.5%.

• H2 assumptions include firm automotive, AI-related and industrial equipment orders, with raw material price pressure remaining at Q2 levels.

• Forecast exchange rates are ¥159.52/US$ and ¥183.77/€; FY03/28 target operating margin is 13.6%.