SPK (7466) Q2 2027 earnings summary

Executive summary

• H1 FY2027 sales and operating profit grew YoY, while profit attributable to owners of parent declined.

• VISION2030 2nd Cycle, its final year, was progressing steadily.

Financial highlights

• H1 net sales were ¥39,318m (+7.9% YoY); operating profit was ¥2,158m (+19.3%).

• Ordinary profit was ¥2,300m (+17.8%); profit attributable to owners of parent was ¥1,206m (-8.7%).

• Operating margin improved to 5.5% from 5.0%; gross profit rose ¥702m, absorbing ¥352m of higher SG&A costs as operating profit increased ¥350m.

• H1 comprehensive income was ¥1,405m versus ¥1,092m in the prior-year period.

• Net income included a ~¥310m valuation loss on shares in an affiliated company following weaker performance at a non-consolidated subsidiary.

Outlook and guidance

• FY2027 forecasts: net sales ¥80,000m (+6.3%), operating profit ¥3,700m (+3.1%), ordinary profit ¥3,900m (+0.3%), and parent-attributable profit ¥2,730m (+1.4%).

• H1 progress against FY targets: revenue 49.1%, operating profit 58.3%, ordinary profit 58.9%, and parent-attributable profit 44.1%.

• Industrial machinery outlook included recovery in North American forklift-parts demand and expanding mining-related construction machinery demand.

• CUSPA planned further price increases as market conditions allow; some products still lacked full cost pass-through.