FY2027-Q1 saw higher revenue and profit, but revenue progress was below the linear pace implied by the full-year forecast

FY2027-Q1 revenue was ¥14.321 billion, up 18.6% year on year, while operating profit was ¥806 million, up 108.8%. Ordinary profit was ¥895 million and net income attributable to owners of the parent was ¥578 million, up 85.4% and 84.3%, respectively. In addition to higher revenue, the company identified improved construction profit margins as a factor behind the increase in profit. Whether the improvement was accompanied by better profitability rather than simply earlier revenue recognition will remain a focus in the next results.

The full-year forecasts are ¥70.0 billion in revenue, ¥6.0 billion in operating profit, ¥6.2 billion in ordinary profit and ¥4.1 billion in net income attributable to owners of the parent. Q1 progress was therefore 20.5%, 13.4%, 14.4% and 14.1%, respectively. If the year were divided evenly by quarter, 25% would be the benchmark, so both revenue and profit were below a linear pace. However, in equipment construction, the timing of large-project completion and seasonality in construction progress mean that Q1 alone does not indicate a shortfall against the full-year forecast. We will check whether H1 revenue exceeds ¥35.0 billion and operating profit exceeds ¥3.0 billion, or whether the company can explain the weighting toward the second half.

FY2026-H1 revenue was ¥26.707 billion and operating profit was ¥1.262 billion, implying an operating margin of approximately 4.7%. The current Q1 operating margin has risen to approximately 5.63%, calculated as ¥806 million divided by ¥14.321 billion. Because Q1 and H1 cover different periods, however, the H1 comparison with the previous year should use the same cumulative basis for both year-on-year growth and margins. The current earnings summary does not disclose revenue or profit by segment. The only reportable segment is the equipment construction business, while details of other businesses have been omitted because they are not material.

At the next results announcement, we will check whether the high rate of operating profit growth in Q1 was maintained in H1, whether the improvement in construction profit margins reflected a temporary project mix, and whether it is reproducible as a result of project and cost management. We will also track any revision to the full-year forecast, the amount of revenue and profit expected in the second half, and whether revenue, orders and carried-forward construction work are disclosed by construction category.