Assess whether the early profit contribution in Q1 is sustainable through the first half

In Q1, covering 1 March to 31 May 2026, revenue was ¥5,764 million, operating profit was ¥918 million, ordinary profit was ¥925 million, and net profit attributable to owners of the parent was ¥604 million. Year on year, revenue rose 15.8%, operating profit 72.4%, ordinary profit 76.7%, and net profit 45.8%, with both revenue and profit increasing.

Progress against the full-year forecast was 33.9% for revenue, 76.5% for operating profit, 77.7% for ordinary profit, and 75.5% for net profit. The amounts still required after Q1 to achieve the full-year forecast are only ¥11,236 million for revenue, ¥282 million for operating profit, ¥265 million for ordinary profit, and ¥196 million for net profit. Operating profit in particular is at a level where, on a simple calculation, securing ¥282 million in standalone Q2 would bring cumulative first-half operating profit to the full-year forecast of ¥1,200 million.

Q1 operating margin was 15.9%, up approximately 5.2 percentage points from approximately 10.7% in the same quarter of the previous year. However, the company's explanation for the increase was qualitative, citing the completion of large construction projects, progress on ongoing projects exceeding plan, and orders for cleaning projects. The contribution of each project to revenue, gross profit, and operating profit has not been disclosed. Accordingly, before judging the first-half profit level as a permanent improvement in full-year performance, it will be necessary to confirm the timing of project completions and the reproducibility of profit margins.

In FY2027-H1, the first point to confirm is whether the company can secure revenue of ¥8,500 million, half of the full-year forecast. For operating profit, reaching cumulative first-half profit of ¥1,200 million would be a strong signal of upside to the full-year plan. Conversely, if the margin falls significantly from Q1's 15.9%, the possibility increases that the early profit contribution was primarily driven by project timing. Along with project-level contributions, it will also be important to check whether the full-year forecast is revised after the end of the first half.