SG Holdings (9143) Q1 2027 earnings summary

Executive summary

• Operating revenue for Q1 FY2027/3 rose 21.7% year-over-year to ¥447.3 billion, with operating income up 14.9% to ¥20.0 billion and net income attributable to owners up 20.8% to ¥12.2 billion.

• Comprehensive income increased 59.7% year-over-year to ¥14,523 million.

• All major business segments reported revenue growth, with the Global Logistics Business showing the highest increase, driven by strong cargo volume and higher air freight rates.

• The full-year earnings forecast remains unchanged due to ongoing uncertainties in the business environment.

Financial highlights

• Q1 operating revenue: ¥447.3 billion (+21.7% YoY); operating income: ¥20.0 billion (+14.9% YoY); net income: ¥12.2 billion (+20.8% YoY); ordinary income: ¥20,551 million (+15.0% YoY).

• Basic net income per share: ¥20.55 (vs. ¥16.69 a year ago).

• ROE improved to 11.0% (+0.5pt YoY); ROIC at 6.8% (-0.2pt YoY).

• Operating margin slightly decreased to 4.5% from 4.8% YoY.

• Interim dividend forecast raised to ¥27 per share, total annual dividend to ¥54.

Outlook and guidance

• Full-year forecast: operating revenue ¥1,740.0 billion (+5.8% YoY), operating income ¥97.0 billion (+7.4% YoY), net income ¥60.0 billion (+1.7% YoY), basic net income per share forecast at ¥99.72.

• H1 FY2027/3 forecast: operating revenue ¥846.0 billion (+8.1% YoY), operating income ¥36.0 billion (-6.5% YoY).

• No changes to previously announced earnings forecasts; business environment expected to remain uncertain due to global economic and geopolitical risks.

• Global Logistics expected to remain solid, but overall outlook cautious due to external uncertainties.