Nippon Sanso (4091) Q2 2027 earnings summary

Executive summary

• Q2 revenue rose 11.7% YoY to ¥375.3bn and core operating income rose 11.5% to ¥54.2bn; excluding FX, growth was 5.8% and 5.4%.

• H1 revenue increased 13.3% to ¥737.1bn and core operating income rose 15.5% to ¥108.8bn; H1 results exceeded the May plan including FX and were in line excluding FX.

• H1 net income attributable to owners rose 38.6% to ¥79.5bn; FX added ¥45.7bn to revenue and ¥7.0bn to core operating income.

Financial highlights

• Q2 IFRS operating income was ¥54.5bn, up 12.1%, and net income attributable to owners was ¥35.8bn, up 23.6%.

• H1 IFRS operating income increased 26.6% to ¥119.2bn; net income attributable to owners rose 38.6% to ¥79.5bn.

• H1 comprehensive income fell 41.8% to ¥62.8bn, including ¥22.6bn of negative foreign-operation translation differences versus ¥44.6bn positive a year earlier.

Outlook and guidance

• FY2027 forecasts remain unchanged: revenue ¥1,380bn, core operating income ¥208bn, IFRS operating income ¥215bn and net income attributable to owners ¥131bn.

• H1 progress was 53.4% for revenue, 52.3% for core operating income, 55.5% for IFRS operating income and 60.8% for net income attributable to owners.

• H2 priorities include cost pass-through and control, electronics growth, and securing equipment and installation projects, particularly in Japan; electronics gas demand is expected near H1 levels or slightly higher.

• FY2027 exchange-rate assumptions are ¥150/USD and ¥175/EUR; currency movements remain a material sensitivity to revenue and core income.