FY2027-Q1 delivered higher revenue and profit, but full-year revenue progress is slightly behind schedule

FY2027-Q1 revenue was ¥521.215 billion, up 18.4% from ¥440.339 billion in the year-earlier quarter. Operating profit was ¥45.317 billion, ordinary profit was ¥45.863 billion, and net profit attributable to owners of the parent was ¥30.909 billion, representing year-on-year increases of 15.3%, 11.5% and 4.8%, respectively. Both the top line and operating profit expanded, indicating an improvement in the headline direction of the results.

The company’s FY2027 full-year forecasts are revenue of ¥2.42 trillion, operating profit of ¥188.0 billion, ordinary profit of ¥187.0 billion and net profit of ¥151.0 billion. FY2027-Q1 progress was 21.5% for revenue and 24.1% for operating profit. Compared with the simple 25% quarterly time-elapsed benchmark, revenue was 3.5 percentage points behind while operating profit was broadly in line. Operating profit progress was relatively strong, but quarterly revenue and profit at construction companies fluctuate depending on project completion schedules, so full-year performance cannot be judged on Q1 alone.

By segment, civil engineering revenue was ¥177.2 billion, building ¥315.5 billion, development ¥46.1 billion and Other ¥4.5 billion. All segments reported higher revenue year on year, with growth of 21.0% in building, 19.5% in civil engineering, 6.5% in development and 32.2% in Other. However, higher revenue did not translate directly into higher profit. Civil engineering reported higher revenue but lower profit, making it necessary to examine segment profitability rather than revenue scale alone.

For FY2027-H1, a useful benchmark is whether revenue reaches approximately 42% of the full-year forecast and operating profit approximately 45–50%. This is a mechanical threshold that does not take seasonality into account. The Q1 financial summary did not include a cash flow statement, and working capital and investment spending cannot be fully assessed. At the next results, order intake, carried-forward orders, segment margins and any revision to the full-year forecasts should therefore be reviewed together.