Taiheiyo Cement (5233) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 7.1% YoY to ¥469,278 million; operating profit fell 7.7% to ¥30,318 million and ordinary profit fell 12.8% to ¥28,726 million.

• Profit attributable to owners of parent rose 50.1% to ¥36,748 million, supported by ¥17,969 million net extraordinary income, including a ¥19,093 million gain on disposal of non-current assets.

Financial highlights

• Gross profit was ¥108,763 million versus ¥105,185 million YoY; SG&A expenses rose to ¥78,445 million from ¥72,331 million.

• Profit before income taxes reached ¥46,695 million; extraordinary income of ¥22,997 million was offset by ¥5,028 million of extraordinary losses.

• H1 operating cash flow was ¥47,134 million, investing cash outflow ¥117,005 million and financing cash inflow ¥83,454 million.

Outlook and guidance

• Revised FY2027 forecast: sales ¥1,010.0 billion, operating profit ¥63.0 billion, ordinary profit ¥55.5 billion, net profit ¥51.0 billion and EPS ¥464.36.

• Versus prior guidance, sales were cut ¥17.0 billion, operating profit ¥13.0 billion, ordinary profit ¥14.5 billion and net profit ¥12.0 billion.

• Domestic cement demand forecast is 29.0 million tonnes, versus FY2026 actual of 30.53 million tonnes; labor shortages, construction delays and high costs constrain demand.

• Middle East-related impacts are assumed to persist through FY2027; U.S. acquisition contribution is expected below initial assumptions.