Mory Industries (5464) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 1.3% to ¥21.901bn; operating income increased 23.3% to ¥2.549bn.

• Higher selling prices, productivity gains and cost reductions offset lower volumes and higher nickel and energy costs.

Financial highlights

• Gross profit was ¥5,569m versus ¥5,101m; ordinary income rose 20.4% to ¥2,767m and net income attributable to owners rose 16.6% to ¥1,854m.

• Comprehensive income was ¥2,286m versus ¥1,911m in the prior-year interim period.

• Operating cash flow was ¥2,693m versus ¥2,730m; investing cash flow was an outflow of ¥4,843m versus ¥1,739m.

• Improved production value, variable-cost ratio and interest income contributed to higher ordinary income; inventory valuation and foreign-exchange effects also contributed.

Outlook and guidance

• FY2027 forecast unchanged: revenue ¥44.3bn (+2.3%), operating income ¥4.1bn (-6.4%), ordinary income ¥4.6bn (-5.7%) and net income ¥3.2bn (-4.7%).

• Forecast EPS is ¥84.22; actual results may differ as stainless-steel and nickel market conditions are difficult to predict.

• Priorities include piping sales and production efficiency, equipment renewal, plant consolidation at a new factory, new business areas, renewable energy and HR-system reform.