UT Group Co (2146) Q2 2027 earnings summary

Executive summary

• 1H FY2027 net sales rose 2.4% YoY to ¥85.313bn; operating income increased 17.5% to ¥5.801bn and net income attributable to owners rose 17.9% to ¥3.832bn.

• Semiconductor staffing strength, lower SG&A and improved staffing profitability supported results; Twenty First consolidation also contributed, and the FY2027 forecast was revised upward.

Financial highlights

• Gross profit was ¥16.034bn (+0.7% YoY); SG&A fell 6.8% to ¥10.232bn, supporting operating income growth of 17.5%.

• Reported gross margin was 18.8%; excluding ¥1.1bn of 1H stock compensation expenses and M&A impacts, gross margin was 20.1%.

• Ordinary income rose 17.8% to ¥5.881bn; basic EPS was ¥6.72 and diluted EPS ¥6.29 on the post-split basis.

• Operating cash flow was ¥6.568bn versus ¥3.589bn in 1H FY2026; cash and cash equivalents ended at ¥28.787bn, down ¥720m from FY-end.

Outlook and guidance

• FY2027 forecast: net sales ¥172bn, gross profit ¥32.6bn, operating income ¥11bn, ordinary income ¥11.1bn, net income ¥7.1bn and EPS ¥12.46.

• Revised operating income forecast is 10.0% above the initial forecast; higher sales and gross profit support the revision, while hiring and other SG&A costs are below initial expectations.

• Annual dividend forecast was raised to ¥11.87 per share under the 100% payout policy; the 2Q dividend of ¥2.66 was scheduled for payment December 18, 2026.

• Hiring is planned to accelerate from 3Q, mainly in semiconductors; the medium-term plan targets 38,000 technical employees by FY2029.