Nihon Dengi (1723) Q2 2027 earnings summary

Executive summary

• 1H FY27 net sales rose 5.8% YoY to ¥19,758m and operating income increased 9.9% to ¥4,549m, setting a first-half earnings record.

• Both segments grew, supported by robust construction demand and margin-improvement efforts.

• Basic EPS was ¥51.78, calculated assuming the April 1, 2026 four-for-one stock split applied from the start of the prior fiscal year.

Financial highlights

• Gross profit rose 9.0% YoY to ¥9,203m; gross margin was 46.6%, up 1.4 percentage points.

• Ordinary income increased 12.8% to ¥4,846m; profit attributable to owners of parent rose 11.2% to ¥3,300m.

• Operating margin was 23.0%, up 0.8 percentage points; comprehensive income was ¥3,645m versus ¥4,009m YoY.

Outlook and guidance

• FY2027 forecast: net sales ¥51,500m (+11.1% YoY), operating profit ¥12,500m (+5.7%), ordinary profit ¥12,700m (+4.7%) and parent-attributable profit ¥8,700m (+3.0%).

• FY2027 orders received trend is ¥52,500m versus ¥54,001m in FY26, with 4Q FY27 marked as a forecast.

• Earnings and dividend forecasts were unchanged; sales and utilization tend to be higher in Q4 due to construction completions and delivery concentration.