PILLAR (6490) Q2 2027 earnings summary

Executive summary

• H1 sales and operating profit reached first-half records, rising 48.5% and 109.9% YoY, driven by semiconductor-related demand.

• FY2027 guidance was raised to record sales of ¥90.0bn and operating profit of ¥23.5bn, assuming robust semiconductor demand continues in H2.

Financial highlights

• H1 consolidated sales were ¥41.812bn, up ¥13.651bn YoY; operating profit was ¥11.766bn, up ¥6.161bn.

• Ordinary profit rose 104.8% YoY to ¥11.831bn; profit attributable to owners of parent increased 101.1% to ¥8.140bn.

• Operating margin expanded 8.2 percentage points to 28.1%; EPS was ¥356.03 versus ¥174.69.

• Sales growth comprised +¥13.280bn in Electronic Equipment, +¥0.372bn in Industrial Equipment and -¥0.001bn in Others.

• Operating cash flow was ¥4.518bn versus ¥6.691bn YoY, including increases of ¥6.095bn in trade receivables and ¥1.492bn in inventories.

Outlook and guidance

• FY2027 forecast was raised to sales of ¥90.0bn, operating profit of ¥23.5bn and parent-attributable profit of ¥16.4bn.

• FY operating margin is forecast at 26.1%; H2 production ramp-up costs are expected to weigh on profitability.

• Electronic Equipment FY sales and operating profit are forecast at ¥68.9bn and ¥20.3bn; H2 sales are expected to exceed H1 by ¥5.5bn.

• Industrial Equipment FY sales and operating profit are forecast at ¥21.1bn and ¥3.2bn, both above the prior year.

• Forecast EPS is ¥239.05 post-split, or ¥717.16 on a pre-split basis.