KVK Corporation (6484) Q2 2027 earnings summary

Executive summary

• H1 FY Mar-2027 revenue rose 4.9% YoY to a record ¥15,861 million; operating profit fell 49.3% to ¥699 million amid higher raw-material, copper and component costs and yen depreciation.

• Ordinary profit declined 27.2% to ¥1,261 million and interim net profit fell 31.4% to ¥816 million; full-year guidance was unchanged.

Financial highlights

• Gross profit was ¥3,090 million versus ¥3,768 million a year earlier; cost of sales reached 80% of revenue amid raw-material inflation, while SG&A was largely stable.

• Revenue exceeded the interim forecast by ¥561 million; operating profit, ordinary profit and net income missed forecasts by ¥600 million, ¥288 million and ¥283 million, respectively.

• Investment securities gains were ¥508 million versus ¥86 million in the prior-year interim period, contributing to ordinary profit.

• Q1 revenue rose 5.6% YoY and operating profit fell 63.4%; Q2 revenue rose 4.3% and operating profit fell 32.6%.

Outlook and guidance

• FY2027 guidance, unchanged from May 15, 2026: revenue ¥31,500 million, operating profit ¥2,800 million, ordinary profit ¥3,200 million and net profit ¥2,200 million; forecast EPS ¥274.05.

• August 2026 price revisions are expected to contribute to sales as their effects become more fully reflected; housing demand and input costs remain uncertain.

• FY2027 dividend is forecast at ¥85 per share, comprising ¥40 interim and ¥45 year-end, versus ¥80 in FY2026; this would mark 17 consecutive years without a dividend reduction.