Tokyo Century (8439 ) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 12.5% YoY to ¥779.9bn and operating income increased 24.5% to ¥90.3bn; net income attributable to owners fell 26.2% to ¥68.5bn, mainly due to non-recurrence of prior-year Russia-related insurance proceeds.

• Underlying net income, excluding extraordinary income and losses, rose ¥20.8bn YoY to ¥67.3bn, supported by aircraft and vessel sales and CSI secondary-market earnings.

• FY2027 net income guidance increased to ¥145.0bn, including an expected ~¥38bn after-tax gain from transferring a 50% stake in TC Skyward Aviation U.S. to ITOCHU.

Financial highlights

• H1 revenue was ¥779.9bn vs. ¥693.3bn; gross profit ¥185.9bn vs. ¥155.5bn; operating income ¥90.3bn vs. ¥72.5bn.

• Ordinary income rose to ¥102.1bn from ¥77.2bn, supported by higher equity-method earnings; net income attributable to owners was ¥68.5bn vs. ¥92.8bn.

• Basic EPS was ¥140.10 vs. ¥190.04 and diluted EPS was ¥139.72 vs. ¥189.35.

• Comprehensive income was ¥121.3bn vs. ¥15.1bn, including ¥45.0bn of other comprehensive income, primarily from currency translation adjustments.

Outlook and guidance

• FY2027 net income forecast rose from ¥123bn to ¥145bn; basic EPS forecast increased from ¥251.66 to ¥296.06.

• Full-year common-stock dividend forecast increased to ¥104 per share from ¥90, including a ¥52 year-end dividend; payout ratio forecast is 35.1%.

• The expected ~¥38bn net income contribution from the 50% TC Skyward Aviation U.S. transfer is conditional on planned November 2026 completion and may vary with foreign-exchange movements.

• FY2030 targets include ¥200bn net income and 12.5% ROE; growth investments through FY2030 are planned to exceed ¥2tn, including ~¥1tn for M&A, ¥500bn for strategic partnerships and ¥500bn for other growth investments.