Totech (9960) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 3.0% YoY to ¥80,825 million; operating profit increased 18.2% to ¥9,164 million and parent-attributable profit grew 16.0% to ¥6,080 million.

• Record-high sales and operating profit, gross margin, orders and backlog reflected stronger Instrumentation Business and group-company sales, domestic demand, and large overseas projects.

Financial highlights

• H1 ordinary profit rose 18.6% YoY to ¥8,659 million; basic EPS increased to ¥148.25 from ¥127.35.

• Gross margin reached a record 30.4%, up 2.7ppt YoY; increased gross profit more than offset higher SG&A and investment costs.

• Sales rose ¥2.3bn YoY while cost of sales fell ¥0.4bn; SG&A increased ¥1.4bn, including recruitment and human resources spending.

• Comprehensive income was ¥8,084 million, down 0.3% YoY from ¥8,106 million.

Outlook and guidance

• FY2027 forecast: net sales ¥180,000 million (+5.9%), operating profit ¥19,000 million (+10.9%), ordinary profit ¥19,500 million (+8.4%) and parent-attributable profit ¥14,400 million (+9.6%).

• Forecast basic EPS is ¥351.07; the full-year forecast was revised from the most recent announcement.

• H2 plans include continued investment in human resources, branding and IT while absorbing costs and pursuing higher profit.

• FY2030 targets raised to net sales ¥220.0bn and ordinary profit ¥22.0bn, from initial plans of ¥200.0bn and ¥15.0bn.