Revenue and profit increased in 1Q, but progress against the full-year plan is slightly behind schedule

In the first quarter from April to June 2026, revenue was ¥50,333 million, operating profit was ¥5,189 million, ordinary profit was ¥5,612 million and net income attributable to owners of the parent was ¥3,470 million. Compared with revenue of ¥44,422 million and operating profit of ¥4,271 million in the same quarter of the previous year, revenue increased 13.3% and operating profit increased 21.5%, indicating a favorable direction for earnings.

Progress against the full-year forecast was 20.5% for revenue, calculated as ¥50,333 million ÷ ¥245,000 million, and 19.2% for operating profit, calculated as ¥5,189 million ÷ ¥27,000 million. If the first quarter is simply treated as 25% of the full year, revenue was 4.5 percentage points behind and operating profit was 5.8 points behind. Construction revenue and profit recognition can be weighted toward particular quarters, so this gap alone does not indicate a full-year shortfall, but the first point to confirm is how much of the gap is narrowed in the first half.

The company explained that information and communications construction and distribution-line construction declined, while indoor electrical construction and air-conditioning and plumbing construction increased. It attributed the increase in operating profit not only to higher revenue but also to stricter cost control, more efficient construction and company-wide cost reductions. However, as of the first quarter, no quantitative breakdown had been disclosed showing the increase by construction type or how many millions of yen each cost measure added to operating profit.

A simple even-progress benchmark for the first half is revenue of ¥122,500 million and operating profit of ¥13,500 million. To reach these levels from the 1Q results, the company would need to record an additional ¥72,167 million in revenue and ¥8,311 million in operating profit by the second quarter. At the next results announcement, we will check the first-half cumulative results, whether the full-year forecasts of ¥245,000 million and ¥27,000 million can be maintained, and whether the growth in indoor electrical construction and air-conditioning and plumbing construction seen in 1Q has continued.