Delayed first-quarter orders will determine first-half sales and order backlog

Orders in the first quarter of the fiscal year ending March 2027 were ¥8,539 million, with an order backlog of ¥35,642 million. Orders fell 12.0% year on year, and the order backlog was also below the year-earlier level. The company attributed the decline to orders being delayed into the second quarter and beyond. Sales, however, were ¥9,359 million, up 2.7% year on year, so the weakness in orders was not immediately reflected in sales.

Sales comprised ¥7,569 million in completed construction work and ¥1,766 million in product sales, with sales from large projects contributing to the increase. Accordingly, first-quarter sales growth may have been supported by progress on previously won projects and the recognition of sales from large projects, rather than by strong new orders. In the first half, it will be necessary to determine whether a recovery in orders emerges ahead of the maintenance of sales.

At the end of the fiscal year ended March 2026, orders were ¥47,933 million and the order backlog was ¥36,462 million. The backlog increased 2.5% year on year to a record high. By contrast, the order backlog at the end of the first quarter of the fiscal year ending March 2027 had declined by ¥820 million, or approximately 2.2%, from the previous fiscal year-end. Although a simple comparison is not possible because the figures reflect seasonality and project progress, if the backlog falls further below ¥35,642 million at the end of the first half, the cushion supporting the full-year sales assumption of ¥47,000 million should be considered to have narrowed.

In the next results, we will confirm standalone second-quarter and cumulative first-half orders, the order backlog and the timing of projects carried forward. In particular, the breakdown of orders and the timing of construction in the backlog by roofing and building materials will be important in determining whether the order delay was resolved in the second quarter or merely pushed back. At present, detailed segment-level breakdowns of orders and the order backlog, as well as the monetary impact of delayed orders, have not been disclosed.