How much of the first-quarter decline in revenue and profit can be recovered in the first half

In 1Q, from 1 April to 30 June 2026, revenue was ¥9,790 million, operating profit was ¥465 million, ordinary profit was ¥440 million, and net profit attributable to owners of the parent was ¥299 million. Year on year, revenue fell 14.2%, operating profit 22.3%, ordinary profit 27.2% and net profit 28.0%, with the declines below operating profit exceeding the decline in revenue.

The full-year forecast is revenue of ¥52,700 million and operating profit of ¥2,500 million, making first-quarter progress approximately 18.6% for each. Assuming simple quarterly progress of 25% per quarter, revenue and operating profit were both approximately 6.4 percentage points behind. However, the company has not disclosed specific explanations or quarterly plans for seasonality arising from the timing of construction progress. Rather than judging full-year underperformance from the 18.6% progress rate alone, it will be necessary to check whether cumulative first-half revenue approaches ¥26,350 million and operating profit approaches ¥1,250 million.

Compared with FY2026 actual results, FY2027 plans call for revenue to increase 15.1% from ¥45,797 million to ¥52,700 million, while operating profit declines 12.0% from ¥2,842 million to ¥2,500 million. Accordingly, even if only revenue recovers in the first half, the likelihood of achieving the full-year forecast will not improve without a corresponding recovery in margins. In H1, cumulative operating profit and recovery in the operating margin will need to be monitored alongside revenue progress.

The company attributed the first-quarter decline in revenue and profit partly to the reversal of progress on large-scale construction projects in the prior period, but did not disclose the monetary impact of construction timing on revenue and profit. In FY2027-H1, cumulative results and segment commentary should help distinguish whether the first-quarter decline was a temporary shift in construction timing, a delay in converting the order backlog into revenue, or a decline in profitability.