Nippon Gas (8174) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 10.6% YoY to ¥97,585m; gross profit was ¥31,314m, operating income ¥4,395m and attributable profit ¥2,903m, all lower YoY.

• LP gas and platform gains were outweighed by electricity weakness amid higher fuel costs and lower sales volumes.

Financial highlights

• Gross profit fell 2.3% YoY; operating income declined 12.0% to ¥4,395m, ordinary income fell 14.1% to ¥4,326m and attributable profit declined 15.6% to ¥2,903m.

• 1H gross profit was ¥0.1B above plan, SG&A ¥0.2B below plan and operating income ¥0.3B above plan; net income exceeded plan by ¥0.1B.

• Basic EPS was ¥9.08; comprehensive income rose 11.7% to ¥3,890m. EPS reflects split-adjusted comparative calculations.

Outlook and guidance

• FY2027 guidance unchanged: gross profit ¥75.5B, SG&A ¥55.5B, operating income ¥20.0B, ordinary income ¥20.0B, attributable profit ¥14.0B and EPS ¥44.09 post-split.

• FY2029 targets: gross profit ¥82.0B, SG&A ¥57.0B, operating income ¥25.0B, net income ¥17.5B, ROE ~22% and ROIC ~13%.

• FY2027 assumptions include CP of $680/t from November, ¥160/US$ and residential LP gas margin of ~¥231/kg; raw-material slide-time-lag impact revised to -¥0.9B from -¥1.1B, with 1H impact of -¥0.32B.

• FY2027 year-end dividend forecast is ¥18.50 per share post-split; planned dividends total more than ¥36.0B over FY2027–FY2029.