Accelerated Q4 profit growth is needed to achieve the FY2026 full-year forecast

Nine-month cumulative revenue for the fiscal year ending September 2026 was ¥4,940 million, up 7.4% year on year, while operating profit was ¥562 million, up 14.9%. Ordinary profit was ¥575 million and quarterly net income attributable to owners of the parent was ¥398 million, up 15.8% and 18.0%, respectively. The full-year forecasts remain unchanged at ¥6,500 million in revenue, ¥690 million in operating profit, ¥700 million in ordinary profit and ¥469 million in net income.

Working back from the full-year forecasts, Q4 revenue of ¥1,560 million and operating profit of ¥128 million will be required. Revenue progress is 76.0% and operating profit progress is 81.4%, with profit advancing faster than revenue. However, simply subtracting the cumulative figures through Q2 from those through Q3 gives standalone Q3 revenue of ¥1,555 million and operating profit of ¥78 million, for an operating margin of approximately 5.0%. The required Q4 operating margin is approximately 8.2%, requiring a recovery from the standalone Q3 margin.

In the previous fiscal year ending September 2025, full-year revenue was ¥6,271 million and operating profit was ¥538 million, while nine-month cumulative revenue was ¥4,601 million and operating profit was ¥489 million. Accordingly, prior-year Q4 revenue was calculated at ¥1,670 million and operating profit at ¥49 million. The ¥1,560 million revenue required this Q4 is approximately 6.6% below the prior-year quarter, while the ¥128 million operating profit required is approximately 2.6 times the prior-year figure. It will be necessary to determine whether the difference in profit is driven by project mix, construction profitability or completion timing.

The company cited progress and completion of construction at large commercial facilities and luxury resort hotels, stronger partnerships with major housebuilders, high-value-added proposals and new orders as factors behind higher revenue and profit, but has not disclosed a monetary breakdown of revenue and operating profit by factor. At the next full-year results announcement, the focus will be on actual Q4 revenue of ¥1,560 million and operating profit of ¥128 million, profitability by project or construction type, and whether the full-year forecasts are revised.