Sankyu: Cuts FY2027 Standalone Forecast as Profit Slips

Sankyu lowered its standalone earnings forecast for the year ending March 2027. Revenue is expected to exceed the previous year's result, while ordinary profit and net profit are projected to fall short.

Compared with the previous forecast, revenue is down 1.2%, ordinary profit 4.5% and net profit 2.8%. Revenue is still expected to top the previous year's 4,405.04 (¥100 million), but both profit measures and earnings per share are forecast below their prior-year levels. Revenue growth and a recovery in earnings are therefore not moving in tandem.

The revision reflects differing performance across Sankyu's businesses. Logistics is expected to outperform the initial forecast, but lower-than-expected engineering work volume led the company to reduce its overall outlook.

• Logistics: Unit-price revisions and progress in structural reforms are expected to lift results above the initial forecast.
• Engineering: Spring SDM maintenance work volume came in below expectations.

Improvements in logistics were not enough to make up for the shortfall in engineering. Sankyu did not disclose revenue or profit figures by business for the revision, so the extent to which either segment drove the overall downgrade cannot be determined.

While lowering its standalone forecast, Sankyu left its consolidated outlook unchanged. The company said engineering at domestic affiliates and logistics at overseas affiliates are expected to outperform the initial forecast.

• Domestic affiliates: Engineering work volume is expected to increase.
• Overseas affiliates: Structural reforms in logistics are expected to advance.

Standalone forecast cut, consolidated outlook unchanged, with affiliate performance supporting the consolidated forecast. The difference in direction alone does not show how much affiliates will offset the standalone earnings decline. Sankyu split each share into five, effective Oct. 1, 2026, and calculated earnings per share on the assumption that the split had taken place at the beginning of the previous fiscal year.