PCI Holdings (3918) Q2 2027 earnings summary

Executive summary

• H1 FY3/27 net sales were ¥12,810 million (-5.9% YoY), operating profit ¥471 million (-38.5%), and profit attributable to owners of parent ¥297 million (-43.7%).

• Excluding PRIVATECH, which became an equity-method affiliate, net sales were ¥12,188 million (-0.7% YoY) and operating profit ¥446 million (-39.4%).

Financial highlights

• Gross profit declined 10.5% to ¥2,878 million; SG&A fell 1.8% to ¥2,407 million, insufficient to offset lower gross profit.

• Operating profit fell 38.5% to ¥471 million and ordinary profit fell 38.7% to ¥485 million; EBITDA was ¥635 million (-31.7%).

• Parent-attributable profit fell 43.7% to ¥297 million; basic EPS was ¥30.01 versus ¥53.40, and comprehensive income declined 48.0% to ¥277 million.

• Versus H1 plan, sales were 0.5% lower and operating profit was 34.7% below plan; gross margin was 22.5% (-1.2 points) and operating margin 3.7% (-2.0 points).

Outlook and guidance

• FY3/27 forecasts remain unchanged: sales ¥26,268 million, operating profit ¥1,808 million, ordinary profit ¥1,900 million, and parent-attributable profit ¥1,260 million.

• Forecasts imply YoY growth of 16.0% in operating profit and 11.5% in parent-attributable profit; forecast EPS is ¥127.00.

• H1 progress was 48.8% of sales, 26.1% of operating profit, 25.6% of ordinary profit, and 23.6% of net profit forecasts; H2 priorities include resource shifts, cost controls, and AI/AWS solutions.