WingArc1st (4432) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥16,498 million, up 12.1% YoY; operating profit was ¥5,168 million, up 25.8%, EBITDA was ¥5,921 million, up 21.9%, and parent-attributable profit was ¥3,796 million, up 29.2%.

• DE revenue grew 17.6% and BDS revenue grew 9.2%; recurring revenue increased 15.6%, led by cloud and subscriptions.

• FY2027 guidance remains unchanged; H1 reached 48.1% of revenue and 51.2% of parent-attributable profit targets.

Financial highlights

• Revenue was ¥16,498 million versus ¥14,712 million a year earlier; operating profit was ¥5,168 million versus ¥4,108 million, with operating margin up 3.4 points to 31.3%.

• EBITDA rose to ¥5,921 million from ¥4,856 million; its margin expanded 2.9 points to 35.9%.

• Parent-attributable profit was ¥3,796 million, up 29.2%; basic EPS was ¥109.26 versus ¥84.84.

• Operating cash flow was ¥6,287 million versus ¥4,339 million; cash and cash equivalents at Aug. 31, 2026 were ¥16,608 million.

Outlook and guidance

• FY2027 forecast remains unchanged: revenue ¥34,300 million, operating profit ¥10,600 million, EBITDA ¥12,100 million and parent-attributable profit ¥7,420 million.

• H1 progress against full-year forecasts: revenue 48.1%, BDS 46.5%, DE 51.1%, EBITDA 48.9% and parent-attributable profit 51.2%.

• FY2027 dividend forecast is ¥108 per share, comprising ¥54 interim and ¥54 year-end; forecast payout ratio is 50.6%.