Q1 profit progress is ahead of the pace implied by the FY2027 full-year forecast

In Q1 of the fiscal year ending March 2027, revenue was ¥312.1 billion, operating profit was ¥29.9 billion, ordinary profit was ¥30.5 billion and profit attributable to owners of the parent was ¥21.3 billion. Year on year, revenue increased 9.2%, operating profit 46.0%, ordinary profit 58.9% and net profit 68.5%, with profit growth outpacing revenue growth.

The fiscal year ended March 2026 closed with revenue of ¥1.2731 trillion, operating profit of ¥98.7 billion, ordinary profit of ¥94.1 billion and net profit of ¥54.8 billion. The company forecasts revenue of ¥1.38 trillion, operating profit of ¥110.0 billion, ordinary profit of ¥105.0 billion and net profit of ¥66.0 billion for the fiscal year ending March 2027. On a full-year basis, this implies planned growth of 8.4% in revenue, 11.4% in operating profit, 11.6% in ordinary profit and 20.4% in net profit.

A simple calculation of Q1 progress gives 22.6% for revenue, compared with 27.1% for operating profit, 29.0% for ordinary profit and 32.3% for net profit. In the construction and real estate industries, quarterly earnings fluctuate depending on the timing of handovers and construction completions, so full-year achievement cannot be judged from a simple comparison with one-quarter of the year. However, whether profit progress slows significantly through the cumulative second quarter, or whether Q1 profit remains ahead of schedule, will be important in assessing the reliability of the full-year forecasts.

At the next results announcement, the key points will be how far the four first-half cumulative metrics have progressed against their full-year forecasts and whether the forecasts are maintained or revised. Net profit had reached 32.3% of its full-year forecast by the end of Q1, but if extraordinary losses or impairment losses on overseas operations arise in the second half, operating profit progress and bottom-line profit progress could diverge. The Q1 financial summary does not include operating, investing or financing cash flow, so it will also be necessary to check in the first half whether profit is being converted into cash.