Ship Healthcare (3360) Q1 2027 earnings summary

Executive summary

• Net sales rose 8.0% year-over-year to ¥176,361 million for the quarter ended June 30, 2026, with ordinary profit up 9.2% to ¥3,383 million and profit attributable to owners of parent up 2.9% to ¥2,090 million, despite a 5.7% decline in operating profit to ¥2,784 million.

• Performance was generally in line with internal plans, supported by large project deliveries and contributions from a newly acquired ODA-focused trading company, and no changes were made to the previously announced financial forecast.

• Comprehensive income was ¥2,026 million, down 14.4% year-over-year.

Financial highlights

• Net sales: ¥176,361 million (+8.0% YoY); Gross profit: ¥13,643 million (-0.7% YoY); Operating profit: ¥2,784 million (-5.7% YoY); Ordinary profit: ¥3,383 million (+9.2% YoY); Net income: ¥2,090 million (+2.9% YoY).

• Gross profit margin decreased to 7.7% from 8.4% YoY; operating profit margin fell to 1.6% from 1.8%.

• Net income per share was ¥22.74.

• Total assets decreased to ¥371,786 million from ¥385,109 million at the previous fiscal year-end.

• Net assets declined to ¥148,154 million, mainly due to dividend payments.

Outlook and guidance

• Full-year net sales forecast at ¥740,000 million (up 3.0% YoY), operating profit at ¥26,000 million (up 6.2%), and profit attributable to owners of parent at ¥16,000 million (up 19.5%).

• Flexible share repurchases planned to achieve ROE of 12%, with up to 3.3 million shares or ¥5 billion targeted for buyback by year-end.

• No revisions have been made to the previously announced forecasts.