USS (4732) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 16.3% YoY to ¥62.778bn, operating profit increased 12.1% to ¥32.176bn and profit attributable to owners rose 9.3% to ¥21.813bn; all set records.

• Higher auction volumes and strong recycling activity supported results; FY2027 earnings and dividend forecasts were revised upward.

Financial highlights

• Gross profit increased 11.7% to ¥38.192bn; gross margin was 60.8% versus 63.4%.

• Operating profit rose 12.1% to ¥32.176bn and ordinary profit rose 12.2% to ¥32.588bn; operating margin was 51.3% versus 53.2%.

• Profit attributable to owners increased 9.3% to ¥21.813bn; SG&A rose 9.6% to ¥6.015bn. Comprehensive income was ¥22.131bn, up 10.1%.

Outlook and guidance

• FY2027 forecast: net sales ¥123.6bn, operating profit ¥63.6bn, ordinary profit ¥64.4bn and parent-attributable profit ¥43.3bn; sales growth forecast at 8.6%.

• Forecast basic EPS increased to ¥94.99 from ¥93.46 in the prior plan; forecast operating margin is 51.5%.

• Annual dividend forecast rose to ¥57.20 per share, including ¥28.20 for Q2 and ¥29.00 at FY-end; projected 27th consecutive annual increase.

• Auction guidance: 3.696m vehicles consigned and 2.431m contracted; forecast completion rate 65.8%, versus 66.3% in the prior plan.