Eiwa (9857) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 rose 8.8% year-over-year to ¥10,412 million, driven by strong sales in shipbuilding, construction, infrastructure, and power sectors, despite declines in machinery and electrical equipment sales.

• Operating profit increased 35.8% to ¥575 million, and net profit attributable to shareholders grew 37.8% to ¥408 million.

• Sales benefited from steady conversion of backlogged orders, robust demand for new ship construction, and infrastructure maintenance vehicles.

• The company focused on deepening relationships with existing customers and expanding growth businesses, emphasizing DX, GX, and social infrastructure.

Financial highlights

• Revenue: ¥10,412 million (+8.8% YoY); Operating profit: ¥575 million (+35.8% YoY); Ordinary profit: ¥617 million (+37.5% YoY); Net profit: ¥408 million (+37.8% YoY).

• Gross profit increased 13.0% year-over-year to ¥1,876 million.

• Comprehensive income for the quarter was ¥619 million, up 85.5% year-over-year.

• EPS for Q1 was ¥64.56, compared to ¥46.84 in the prior year.

• Backlog conversion and large project sales contributed to growth.

Outlook and guidance

• Full-year FY2027 revenue forecast at ¥48,500 million; operating profit at ¥2,660 million; ordinary profit at ¥2,720 million; net profit at ¥1,850 million; EPS forecast is ¥292.32.

• Full-year revenue forecast is a slight decrease of 0.7% year-over-year, but net profit forecast is up 10.6% year-over-year.

• Medium- to long-term ROE target set at 11% or higher.

• No changes to previously announced earnings guidance.