FY2027 forecast shifts to higher revenue but lower operating profit, with FY2027-Q1 focused on an initial assessment of margins

FY2026 revenue was ¥10,380 million, up 26.6% year on year, operating profit was ¥445 million, up 36.2%, ordinary profit was ¥456 million, up 34.9%, and net income attributable to owners of the parent was ¥295 million, up 27.6%. The operating margin also rose 0.3 percentage points, from 4.0% in the previous fiscal year to 4.3%, indicating a phase of expansion accompanied by profit growth based on the latest results alone.

By contrast, the FY2027 company forecast calls for revenue of ¥11,000 million, up 6.0% year on year, operating profit of ¥400 million, down 10.2%, ordinary profit of ¥400 million, down 12.4%, and net income attributable to owners of the parent of ¥260 million, down 11.9%. The operating margin is expected to be approximately 3.6% based on calculation, down approximately 0.7 percentage points from the FY2026 actual figure of 4.3%. While revenue is planned to increase by ¥600 million, operating profit is expected to decline by ¥45 million, indicating that the plan does not assume that growth in volumes and construction activity alone will lift profit.

As factors behind the FY2026 profit growth, the company cited resilient public investment, strong private-sector capital spending, and improved operating efficiency through DX and higher productivity at construction sites. However, it has not disclosed a quantitative bridge showing how many millions of yen each factor contributed to operating profit of ¥445 million, or the extent to which construction costs, labor costs and material costs weighed on profit. Since order intake and the order backlog have also not been disclosed in monetary terms, whether FY2027 revenue of ¥11,000 million is backed by work already ordered should be confirmed in the next earnings report.

In the previous FY2026-Q1, revenue was ¥2,206 million and operating profit was ¥202 million, producing an operating margin of approximately 9.2%. Construction progress is seasonal by quarter, so this figure cannot simply be treated as the FY2027-Q1 target, but it provides a basis for comparing year-on-year revenue, operating profit and operating margin, as well as the company's view of progress against the full-year forecast. The next earnings release is scheduled for 13 November 2026 according to the published information. Even if the full-year forecast is maintained, it will be important to track whether the company provides a fuller explanation for setting the operating profit forecast at ¥400 million.