SG Holdings (9143) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 17.6% YoY to ¥920.4bn; operating income increased 7.5% to ¥41.4bn and attributable net income rose 19.8% to ¥27.9bn.

• Global Logistics growth and solid Logistics performance supported the revised FY2027/3 outlook; Delivery revenue was ahead of plan, while upfront capacity costs weighed on earnings.

Financial highlights

• H1 ordinary income was ¥39.8bn (+4.4% YoY); operating margin was 4.5% versus 4.9% in the prior-year period.

• Operating gross profit increased to ¥97.8bn from ¥84.2bn; income before taxes was ¥43.1bn versus ¥37.9bn.

• Outsourcing expenses rose 28.1% to ¥476.3bn and personnel expenses increased 7.5% to ¥266.5bn.

• Q2 net income included ¥4.5bn of extraordinary income from the sale of cross-shareholdings.

• Comprehensive income fell 17.1% to ¥22.3bn, including a ¥4.8bn negative foreign-currency translation adjustment.

Outlook and guidance

• FY2027/3 forecast revised to revenue ¥1,820bn, operating income ¥100bn, ordinary income ¥98bn and attributable net income ¥65bn; EPS forecast is ¥108.93.

• Forecast segment revenue/operating income: Delivery ¥1,105bn/¥73bn; Logistics ¥210bn/¥8.5bn; Global Logistics ¥440bn/¥8.5bn.

• Delivery package forecast increased to 1.42bn; average unit price forecast revised to ¥660, with H2 pricing and network efficiency key priorities.

• Reported Delivery fares are planned to increase in January 2027; efficiency and appropriate pricing remain priorities for medium- to long-term profitability.

• Global air freight rates are expected to normalize but remain above the prior-year level; cargo volume is expected to stay above plan.