Toto (5332) Q2 2027 earnings summary

Executive summary

• Six-month net sales rose 4.4% YoY to ¥364.675B; operating profit increased 21.2% to ¥25.182B and profit attributable to owners of parent rose to ¥21.315B, a record-high first-half result.

• Advanced Ceramics drove profit growth, while Japan Housing Equipment sales and profits declined.

Financial highlights

• Net sales were ¥364.675B, up 4.4% YoY; gross profit was ¥132.252B versus ¥123.625B.

• Operating profit rose 21.2% to ¥25.182B; operating margin increased to 6.9% from 5.9%.

• Ordinary profit increased 7.5% to ¥24.812B; profit attributable to owners of parent rose to ¥21.315B from ¥8.790B.

• Operating profit benefited from ¥5.0B in price-revision effects and ¥2.6B in cost reductions, partly offset by procurement costs, investment and other factors.

• Comprehensive income was ¥27.866B, compared with a loss of ¥8.351B in the prior-year period.

Outlook and guidance

• FY2027 forecast: net sales ¥775B, operating profit ¥60B, ordinary profit ¥58B and profit attributable to owners of parent ¥46B.

• Full-year sales plan is 99% of the initial plan; operating profit remains unchanged at ¥60B, targeting a second consecutive year of record net sales and operating profit.

• Japan and Advanced Ceramics operating-profit plans increased ¥1.5B each versus the initial plan; International plan decreased ¥2.6B.

• FY2027 forecast basic EPS is ¥279.71; annual dividend forecast is ¥120 per share, including ¥60 per share at fiscal year-end, versus ¥110 for the prior year.