Sumitomo Osaka Cement (5232) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 8.8% YoY to ¥115.105bn and operating profit rose 49.2% to ¥6.147bn; parent-attributable profit fell 3.0% to ¥5.422bn.

• Profit improved across reportable segments, led by cement price increases and High-Performance Products growth; domestic cement demand weakened amid labor shortages and a shorter construction workweek.

Financial highlights

• Gross profit increased to ¥29.466bn from ¥24.763bn; ordinary profit rose 51.0% to ¥6.393bn.

• Operating margin increased to 5.3% from 3.9%; H1 net sales were ¥115.105bn versus ¥105.8bn a year earlier.

• Extraordinary income declined, including a ¥1.756bn gain on investment securities versus ¥3.529bn a year earlier.

• H1 operating cash flow was ¥17.336bn, investing cash outflow ¥10.799bn and financing cash inflow ¥4.201bn.

Outlook and guidance

• FY2026 forecast: net sales ¥241bn, operating profit ¥15bn, ordinary profit ¥14.8bn and parent-attributable profit ¥11.5bn.

• Forecast sales are up 7.7% YoY and operating profit up 9.9%; operating profit is unchanged from the initial forecast, while sales rose ¥6.5bn.

• Full-year basic EPS forecast is ¥122 after the three-for-one split, or ¥366.01 on a pre-split basis.

• FY2026 forecast includes ROE of 5.8%, ROIC of 3.4% and a 77% total return ratio; FY2028 targets are ROE of at least 9.0% and ROIC of at least 6.0%.