Obayashi (1802) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 15.1% YoY to ¥1,336.4B; operating profit increased 22.8% to ¥98.3B and attributable profit rose 22.8% to ¥95.7B.

• FY2027 forecasts were raised to ¥3,115.0B net sales, ¥205.0B operating profit, ¥210.0B ordinary profit and ¥173.0B attributable profit.

Financial highlights

• H1 ordinary profit was ¥102.3B, up 21.1% YoY; gross profit rose to ¥192.4B and SG&A to ¥94.1B.

• Extraordinary income was ¥36.1B, including a ¥35.7B gain on investment-security sales, supporting attributable profit.

• H1 orders received totaled ¥1,446.4B, down ¥30.4B YoY; domestic construction orders rose ¥253.1B while overseas orders fell ¥288.7B.

• Operating cash flow was ¥4.0B, investing cash flow ¥13.3B and financing cash flow negative ¥64.0B; cash and cash equivalents were ¥373.3B.

Outlook and guidance

• FY2027 forecast: net sales ¥3,115.0B, operating profit ¥205.0B, ordinary profit ¥210.0B and attributable profit ¥173.0B; net sales and operating profit are forecast to rise 20.4% and 5.3% YoY.

• New-order forecast rose ¥640.0B from the prior forecast to ¥3,740.0B, reflecting earlier domestic building awards and Multiplex consolidation.

• Forecast increases versus August were ¥170.0B in revenue, ¥25.0B in operating profit, ¥27.0B in ordinary profit and ¥16.0B in net income.

• Annual dividend forecast remains ¥94/share, split ¥47 interim and ¥47 year-end; dividend policy targets DOE around 5% and prioritizes stability.