Nankai Tatsumura Construction (1850) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue reached a record ¥143.759bn, up 13.6% YoY; operating income rose 7.8%, with all profit levels at record highs.

• Higher condominium sales and property disposals offset the post-EXPO 2025 decline; operating income exceeded the initial H1 forecast by ¥2.167bn.

Financial highlights

• Revenue was ¥143.759bn, operating income ¥23.367bn, ordinary income ¥21.772bn and parent-attributable profit ¥14.685bn, up 13.6%, 7.8%, 5.0% and 4.3% YoY, respectively.

• Versus initial H1 forecasts, revenue was ¥0.040bn lower; operating income was ¥2.167bn higher, ordinary income ¥2.672bn higher and parent-attributable profit ¥2.085bn higher.

• Comprehensive income rose 21.7% to ¥24.871bn, including ¥9.745bn of other comprehensive income, mainly valuation gains on available-for-sale securities.

• Non-operating expenses rose ¥0.896bn YoY, including a ¥0.809bn increase in interest expense; extraordinary income was ¥0.837bn and losses ¥0.557bn.

Outlook and guidance

• FY2027 forecast: revenue ¥288.8bn, up ¥1.3bn from initial guidance; operating income ¥40.0bn, ordinary income ¥35.4bn and parent-attributable profit ¥23.8bn.

• Forecast EBITDA is ¥69.5bn versus ¥70.0bn initially; ROE is 7.0%, unchanged from initial guidance and 0.8 percentage points below FY2026.

• Revenue guidance includes newly consolidated building-management subsidiaries; ordinary income guidance was reduced by ¥0.5bn, partly due to higher interest expense.

• Forecast basic EPS is ¥219.94; annual dividends are ¥55 per share, versus ¥50 for FY2026.