Interim Financial Results for Fiscal Year Ending March 2027

Summary

Okumura Engineering corp. announced its interim financial results for the fiscal year ending March 2027. Revenue was 5,730 million yen, up 2.3% year-over-year, marking a record high for an interim period. However, despite robust demand particularly in the marine segment, increases in raw material costs and SG&A expenses led to a 3.3% decline in EBITDA and a 6.9% decline in operating income. The company is steadily implementing shareholder returns such as share buybacks and investing in initiatives including deployment of a new core system. Total assets increased in the interim period while maintaining an equity ratio of 84%. The company aims to achieve ROE that exceeds its cost of capital going forward.

Outlook and Shareholder Returns

The company expects higher revenue but lower profits for the fiscal year ending March 2027. This outlook reflects sustained high material and energy costs and wage increases. The company forecasts a dividend of 50 yen per share. Based on the second medium-term management plan, it will strengthen balance sheet management, shorten the cash conversion cycle (CCC), and improve capital efficiency. The company will continue flexible shareholder returns, including share buybacks.