TIS (3626) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 6.5% YoY to ¥307,153m, operating income increased 7.4% to ¥38,184m, and attributable net income rose 13.5% to ¥26,937m; results exceeded plan.

• Strong orders and backlog supported higher FY2027 guidance; the annual dividend forecast increased to ¥92 per share.

Financial highlights

• H1 gross profit increased 6.4% to ¥85,943m; SG&A rose 5.7% to ¥47,759m, including ¥450m in merger-related expenses.

• H1 ordinary profit rose 6.6% to ¥38,339m; basic EPS was ¥127.12 versus ¥103.10 a year earlier.

• H1 operating margin was 12.4%, up 0.1 percentage points YoY; gross margin was 28.0%, unchanged.

• Extraordinary income was ¥4,784m, including ¥4,217m from investment-security sales; extraordinary losses were ¥1,873m, including ¥994m in impairment losses.

Outlook and guidance

• FY2027 guidance: net sales ¥635,000m (+6.5%), operating and ordinary profit ¥83,000m (+8.9% and +8.5%), attributable net income ¥57,500m (+23.3%), and EPS ¥273.48.

• Revised guidance added ¥15,000m to sales and ¥2,000m to operating profit; forecast gross margin fell 0.6 points to 28.4%.

• Attributable net income guidance includes ¥5,000m in expected investment-security sale gains; anticipated merger expenses are ¥1,200m in SG&A and ¥600m in non-operating expenses.

• Annual dividend forecast rose to ¥92 per share from ¥80 in FY2026; forecast total payout ratio is 48.1% against a 50% policy target.