JGC (1963) Q1 2027 earnings summary

Executive summary

• Profit exceeded expectations in 1Q FY2026/FY2027, driven by strong project execution, favorable yen depreciation, and significant non-operating gains.

• Net sales for 1Q were ¥159.2B/¥159.3B, down year-over-year, but operating profit rose to ¥12.3B/¥12.4B and ordinary profit to ¥21.3B/¥21.4B.

• Profit attributable to owners of parent more than doubled to ¥11.6B, with EPS at ¥48.03, up from ¥23.17.

• Comprehensive income turned positive at ¥8.5B, compared to a loss of ¥1.3B in the previous year.

• Awarded major EPCIC contract for FLNG in Mozambique and secured new contracts in domestic and overseas markets.

Financial highlights

• Gross profit increased to ¥20.3B/¥20.4B, with gross profit margin improving to 12.8% from 8.1% year-over-year.

• Operating profit margin improved significantly, with operating profit at ¥12.3B/¥12.4B versus ¥7.9B last year.

• Ordinary profit more than doubled, driven by higher non-operating income, especially foreign exchange gains.

• Total assets rose to ¥850.0B (+¥11.2B), equity ratio slightly decreased to 50.0% from 51.2%.

• EPS for 1Q was ¥48.03, nearly doubling year-over-year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥670.0B, operating profit ¥40.0B, ordinary profit ¥46.0B, profit attributable to owners of parent ¥46.0B, and EPS forecast at ¥190.25.

• Approximately ¥20B in extraordinary gains expected in Q2 from sale of equity-method affiliates.

• Annual dividend forecast at ¥52.00 per share.