Tsubakimoto Chain (6371) Q2 2027 earnings summary

Executive summary

• Six-month net sales rose 28.4% YoY to ¥174,131 million; operating profit increased 46.3% to ¥12,145 million and ordinary profit rose 39.2% to ¥14,079 million.

• Profit attributable to owners of parent increased 3.0% to ¥10,215 million; orders received rose 39.7% to ¥204,987 million.

• Sales growth across businesses was driven mainly by Daido Kogyo consolidation; operating profit increased in Power Transmission and Mobility.

Financial highlights

• Gross profit was ¥50,580 million, up from ¥40,080 million; operating profit was ¥12,145 million, versus ¥8,302 million.

• Comprehensive income rose to ¥17,335 million from ¥9,332 million, including ¥7,050 million in valuation gains on available-for-sale securities.

• Operating cash flow was ¥12,595 million, investing cash flow was negative ¥7,204 million and financing cash flow was negative ¥13,581 million.

• Cash and cash equivalents ended the period at ¥71,651 million, compared with ¥78,529 million at the beginning of the period.

Outlook and guidance

• Revised FY2027 forecasts: net sales ¥355,000 million (+20.0%), operating profit ¥26,600 million (+23.3%), ordinary profit ¥28,000 million (+12.9%) and parent profit ¥22,000 million (-25.9%).

• Sales, operating profit and ordinary profit forecasts increased by ¥5,000 million, ¥1,100 million and ¥2,000 million; parent profit forecast was unchanged.

• Full-year EPS forecast is ¥217.39; second-half exchange-rate assumptions are ¥150 per US dollar, ¥175 per euro and ¥22 per RMB.