Cloud services drive Products growth
Kozo Keikaku Engineering Holdings Inc. (TSE: 208A) reported consolidated results under Japanese GAAP for the first quarter of FY6/2027, July 1 to September 30, 2026, on November 9, 2026. Revenue reached 18.4% of the full-year forecast, close to last year's 18.7%. Engineering Consulting revenue rose 1.8% to ¥2,111 million as projects carried over from the previous year were completed, but orders in the segment fell 7.1% to ¥3,515 million as some deals slipped. Products Services revenue grew 12.5% to ¥2,238 million, led by cloud services, whose annual recurring revenue rose 19.6% to ¥4,426 million.
Gross profit edged up 0.9% to ¥1,686 million as a weaker yen raised the cost of overseas software and royalties and more consulting work was booked on a cost-recovery basis. Group orders slipped 1.2% to ¥5,707 million, while the order backlog stood at ¥10,360 million, up 2.1% from a year earlier. The ordinary loss widened to ¥284 million and the net loss attributable to owners to ¥238 million, or ¥22.69 per share.
Outlook and ¥110 dividend kept
The company kept its FY6/2027 forecast of revenue of ¥24,380 million (+8.6%), operating profit of ¥3,850 million (+8.7%), ordinary profit of ¥3,790 million (+18.6%) and net profit attributable to owners of ¥2,550 million (+20.6%). It paid a first-quarter dividend of ¥20 and targets ¥110 for the year, paid quarterly, against ¥102 including a special dividend last year. Total assets fell to ¥20,775 million and the equity ratio was 50.4%.
| Metric | Q1 FY6/2027 | Q1 FY6/2026 | Change |
|---|---|---|---|
| Orders received (¥ million) | 5,707 | 5,777 | -1.2% |
| Revenue (¥ million) | 4,483 | 4,197 | +6.8% |
| Gross profit (¥ million) | 1,686 | 1,671 | +0.9% |
| Operating profit (¥ million) | -269 | -115 | loss widened |
| Ordinary profit (¥ million) | -284 | -124 | loss widened |
| Net profit attrib. to owners of parent (¥ million) | -238 | -132 | loss widened |
| EPS (¥) | -22.69 | -12.54 | loss widened |
| Order backlog (¥ million) | 10,360 | 10,144 | +2.1% |
| Engineering Consulting — revenue (¥ million) | 2,111 | 2,074 | +1.8% |
| Products Services — revenue (¥ million) | 2,238 | 1,989 | +12.5% |
| Total assets (¥ million) | 20,775 | 22,495 | -7.6% |
| Net assets (¥ million) | 10,579 | 11,559 | -8.5% |
| Equity ratio | 50.4% | 50.9% | -0.5 pt |
| FY6/2027 guidance — revenue (¥ million) | 24,380 | — | +8.6% |
| FY6/2027 guidance — operating profit (¥ million) | 3,850 | — | +8.7% |
| FY6/2027 guidance — ordinary profit (¥ million) | 3,790 | — | +18.6% |
| FY6/2027 guidance — net profit (¥ million) | 2,550 | — | +20.6% |
| Annual dividend per share (¥) | 110.00 | 102.00 | +7.8% |
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.