A large boiler order lifts the backlog
Meisei Industrial Co., Ltd. (TSE: 1976) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. Orders received rose 11.4% to ¥36,926 million from ¥33,134 million. Boiler orders jumped to ¥8,179 million from ¥3,031 million on a large domestic project, while Construction orders eased 4.5% to ¥28,746 million despite a large overseas contract. The order backlog at September 30 stood at ¥31,289 million, up 29.9% from ¥24,083 million a year earlier and up 39.1% from ¥22,486 million at the March year-end; Boiler backlog rose to ¥10,119 million from ¥2,811 million and Construction backlog was ¥21,169 million against ¥21,271 million.
Thinner construction margins; Boiler back in profit
Construction sales rose 0.9% to ¥25,312 million, supported by firm maintenance work, but segment profit fell 7.5% to ¥2,552 million as the gross margin came in below the prior year. Boiler sales fell 12.6% to ¥2,810 million because revenue on large projects will be recognised from the second half onward, yet the segment earned a profit of ¥53 million against a ¥8 million loss, as the additional costs booked a year earlier did not recur. Group gross profit on completed work fell 2.4% to ¥5,382 million, a margin of 19.1% against 19.5%, and SG&A rose 0.6% to ¥2,729 million. Ordinary profit fell 5.7% to ¥2,945 million, with non-operating income of ¥392 million against ¥422 million. The year-earlier period had carried a ¥161 million impairment loss in the Boiler segment. Earnings per share rose to ¥40.88 from ¥39.92 on a lower average share count. Against the first-half plan published in May, net sales of ¥28,123 million and operating profit of ¥2,652 million beat the ¥28,000 million and ¥2,600 million targets, while ordinary profit and net profit fell short of the ¥3,200 million and ¥2,400 million planned.
Guidance and dividend unchanged
Meisei left its FY3/2027 forecast as published on May 8, 2026: net sales of ¥61,000 million (+1.2%), operating profit of ¥7,000 million (−8.8%), ordinary profit of ¥7,650 million (−7.9%) and profit attributable to owners of the parent of ¥5,600 million (+1.9%), for earnings per share of ¥122.00. The interim dividend is ¥25.00 against ¥20.00, payable from November 20, and a year-end dividend of ¥40.00 is planned, keeping the annual total at ¥65.00. Total assets fell to ¥84,865 million from ¥85,597 million as receivables on completed work declined ¥3,964 million, while cash and deposits rose ¥490 million to ¥37,003 million and investment securities ¥1,336 million. Net assets rose to ¥70,016 million after ¥2,071 million of dividends paid, and the equity ratio improved to 81.9% from 80.6%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 28,123 | 28,300 | -0.6% |
| Gross profit (¥ million) | 5,382 | 5,513 | -2.4% |
| Gross margin | 19.1% | 19.5% | -0.4 pt |
| SG&A expenses (¥ million) | 2,729 | 2,714 | +0.6% |
| Operating profit (¥ million) | 2,652 | 2,799 | -5.2% |
| Operating margin | 9.4% | 9.9% | -0.5 pt |
| Ordinary profit (¥ million) | 2,945 | 3,123 | -5.7% |
| Net profit attrib. to owners of parent (¥ million) | 1,876 | 1,900 | -1.2% |
| Comprehensive income (¥ million) | 2,625 | 2,394 | +9.6% |
| EPS (¥) | 40.88 | 39.92 | +2.4% |
| Construction — revenue (¥ million) | 25,312 | 25,083 | +0.9% |
| Construction — segment profit (¥ million) | 2,552 | 2,760 | -7.5% |
| Boiler — revenue (¥ million) | 2,810 | 3,216 | -12.6% |
| Boiler — segment profit (¥ million) | 53 | −8 | loss to profit |
| Orders received (¥ million) | 36,926 | 33,134 | +11.4% |
| Construction — orders received (¥ million) | 28,746 | 30,102 | -4.5% |
| Boiler — orders received (¥ million) | 8,179 | 3,031 | +169.8% |
| Order backlog (¥ million) | 31,289 | 24,083 | +29.9% |
| Total assets (¥ million) | 84,865 | 85,597 | -0.9% |
| Net assets (¥ million) | 70,016 | 69,522 | +0.7% |
| Equity ratio | 81.9% | 80.6% | +1.3 pt |
| FY3/2027 guidance — revenue (¥ million) | 61,000 | — | +1.2% |
| FY3/2027 guidance — operating profit (¥ million) | 7,000 | — | -8.8% |
| FY3/2027 guidance — ordinary profit (¥ million) | 7,650 | — | -7.9% |
| FY3/2027 guidance — net profit (¥ million) | 5,600 | — | +1.9% |
| FY3/2027 guidance — EPS (¥) | 122.00 | — | — |
| Interim dividend per share (¥) | 25.00 | 20.00 | +25.0% |
| Annual dividend per share (¥) | 65.00 | 65.00 | unchanged |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.