Sankyu (9065) Q2 2027 earnings summary

Executive summary

• H1 FY2027 delivered record half-year profits despite sales falling 2.2% YoY to ¥308.7bn; Logistics improved, while Plant Engineering weakened.

• Facility maintenance demand and price pass-throughs supported results, partly offset by weaker consumption and logistics conditions, particularly in China.

Financial highlights

• H1 net sales were ¥308,729mn, down 2.2% YoY and 1.7% below forecast; operating profit was ¥21,363mn, up 3.9% and 0.5% below forecast.

• Ordinary profit rose 6.7% YoY to ¥21,685mn; profit attributable to owners of parent increased 29.6% to ¥17,507mn, partly supported by lower cross-shareholdings.

• Gross profit was ¥38,133mn versus ¥36,708mn; comprehensive income rose to ¥18,625mn from ¥12,542mn.

Outlook and guidance

• FY2027 consolidated guidance remains unchanged: net sales ¥638,500mn, operating profit ¥47,000mn, ordinary profit ¥45,500mn and parent net profit ¥33,000mn.

• Revised FY2027 non-consolidated forecasts: sales ¥441,200mn, ordinary profit ¥35,800mn and parent net profit ¥27,700mn, down 1.2%, 4.5% and 2.8%, respectively, versus prior guidance.

• Logistics raised its operating-profit plan by ¥1.3bn to ¥12.6bn; Plant Engineering is pursuing additional projects against challenging targets.

• FY2027 basic EPS guidance is ¥131.66, based on the 5-for-1 split effective October 1, 2026; actual results may differ materially from forecasts.