KSK (9687) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 8.7% YoY to ¥13,634m; operating profit fell 3.2% to ¥1,784m and parent net income fell 8.5% to ¥1,276m.

• Pricing revisions and a shift toward growth areas lifted gross profit, while four consecutive years of wage increases and higher hiring and talent investment weighed on operating profit.

Financial highlights

• Gross profit increased 5.9% YoY to ¥3,548m; SG&A rose to ¥1,763m from ¥1,507m.

• Ordinary profit declined 1.6% YoY to ¥1,871m; parent net income was ¥1,276m versus ¥1,395m.

• Income taxes rose to ¥595m from ¥506m, reflecting reduced tax credits after losing eligibility for the wage-increase tax incentive and the introduction of a special defense corporate tax.

Outlook and guidance

• FY2027 guidance unchanged: revenue ¥28,100m (+9.1%), operating profit ¥3,100m (+13.1%), ordinary profit ¥3,300m (+14.6%), and parent net income ¥2,300m (+5.4%).

• Forecast FY2027 EPS is ¥126.31, reflecting the 3-for-1 stock split effective Oct. 1, 2026.