Profit held up despite lower revenue, but weaker orders are increasing reliance on late-period revenue recognition for FY2026

Revenue for the nine months ended September 2026 was ¥6,783.197 million, down 10.2% from ¥7,552.139 million in the same period a year earlier. Operating profit, meanwhile, was ¥353.535 million, above ¥351.320 million a year earlier, an increase of 0.6%. The operating margin improved by 0.56 percentage points, from approximately 4.65% to approximately 5.21%, indicating that higher margins offset the contraction in revenue. Ordinary profit was ¥367.976 million, up 0.8%, while net income attributable to owners of the parent was ¥215.280 million, up 12.9%.

As of 14 November 2025, the FY2026 forecast was revenue of ¥10,700 million, operating profit of ¥450 million and net income attributable to owners of the parent of ¥280 million. Nine-month progress toward these figures was approximately 63.4%, 78.6% and 76.9%, respectively. On a simple calculation, the fourth quarter needs to generate revenue of ¥3,916.803 million, operating profit of ¥96.465 million and net income of ¥64.720 million. Against the nine-month operating margin of 5.21%, the operating margin required over the remaining period to meet the forecast is approximately 2.46%. In addition to the timing of project revenue recognition, it will therefore be important to check for low-margin projects and any additional construction costs. The third-quarter financial results report stated that there had been no change to the consolidated earnings forecast announced on 14 November 2025.

Orders for the nine months were ¥7,052 million, down 35.9% year on year, a significantly larger decline than the decrease in revenue. The simple difference from the ¥4,659 million recorded in the first six months was ¥2,393 million, but the order backlog has not been disclosed. Accordingly, the year-end results will need to confirm fourth-quarter orders, the backlog and the breakdown between the construction and facilities construction businesses, to determine whether the FY2026 revenue forecast of ¥10.70 billion is supported by orders already secured or depends on recognizing projects at the end of the fiscal year.