Macnica Holdings (3132) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 44.5% YoY to ¥831,293m; operating income increased 91.5% to ¥33,518m and parent-attributable net income rose 102.1% to ¥22,278m.

• Semiconductor and cybersecurity demand supported results; CPS Solutions remained loss-making amid delayed deployments and a canceled customer vehicle program.

• CPS Solutions became a separate reportable segment, and prior-year comparisons were restated under the revised structure.

Financial highlights

• H1 net sales were ¥831,293m, gross profit ¥84,292m and operating income ¥33,518m, versus ¥575,435m and ¥17,506m a year earlier for sales and operating income.

• Ordinary income rose 122.4% YoY to ¥32,751m; parent-attributable net income increased 102.1% to ¥22,278m, with EPS of ¥124.74.

• Operating cash flow was an outflow of ¥32,569m, compared with ¥23,614m provided in the prior-year interim period.

Outlook and guidance

• FY2027 forecast: net sales ¥1,670,000m, operating income ¥67,500m, ordinary income ¥66,000m and parent-attributable net income ¥46,000m; forecast EPS is ¥257.56.

• Semiconductor and cybersecurity demand is expected to remain robust; CPS Solutions H2 sales and income are expected below initial plans after revised sales plans and discontinued customer projects.

• Forecast assumes ¥158 per US dollar; actual results may differ materially from projections.