SEIWA HOLDINGS (523A) Q1 2027 earnings summary

Executive summary

• Q1 revenue rose 11.6% YoY to ¥2,100m; adjusted operating profit increased 10.1% to ¥330m, while reported operating profit fell 62.9% to ¥151m.

• Adjusted profit rose 9.3% to ¥274m; reported profit fell 62.0% to ¥106m, reflecting higher M&A costs and a lower bargain-purchase gain.

• FY2027/5 guidance was raised after acquisitions, with acquired businesses expected to contribute mainly from Q2; unfinalized M&A is excluded.

Financial highlights

• Revenue was ¥2,100m vs ¥1,881m; gross profit was ¥745m vs ¥663m, and SG&A rose to ¥697m from ¥431m.

• Reported operating profit was ¥151m vs ¥409m; profit before tax was ¥217m vs ¥375m, and profit was ¥106m vs ¥279m.

• M&A acquisition-related costs rose to ¥226m from ¥14m, while bargain-purchase gains fell to ¥90m from ¥168m.

• Adjusted EBITDA rose 9.0% to ¥411m; adjusted figures exclude acquisition costs, acquisition-related intangible amortization and one-time gains or losses.

Outlook and guidance

• FY2027/5 revenue guidance was raised to ¥11,000m, up 37.3% YoY; the revised forecast includes Daiei Parker, Hoan Doro Kikaku and Eishin Denki.

• Adjusted operating profit guidance increased to ¥2,000m, up 39.8% YoY; adjusted EBITDA guidance is ¥2,350m, up 34.7%.

• Adjusted profit guidance is ¥1,350m, up 27.5% YoY; the forecast excludes M&A transactions not finalized by October 14.