The key question for FY2026-Q3 is whether the recovery in H2 needed to meet the full-year forecast is actually taking shape

In FY2026-H1, consolidated revenue was ¥4,113 million, operating profit was ¥239 million, ordinary profit was ¥251 million, and interim net profit attributable to owners of the parent was ¥159 million. Compared with revenue of ¥4,653 million and operating profit of ¥460 million in the prior-year period, revenue declined by 11.6%, while operating profit fell 48.0%. The operating margin also declined by approximately 4.1 percentage points, from approximately 9.9% in the prior-year period to approximately 5.8%, confirming a deterioration in profitability that cannot be explained by the revenue decline alone.

For the fiscal year ended December 2025, revenue was ¥8,827 million and operating profit was ¥685 million. The company's forecasts for the fiscal year ending December 2026 are revenue of ¥9,451 million, operating profit of ¥993 million, and net profit attributable to owners of the parent of ¥663 million. Simply subtracting the H1 results means that H2 must produce revenue of ¥5,338 million, operating profit of ¥754 million, and net profit of ¥504 million. H2 revenue and operating profit in the fiscal year ended December 2025 were ¥4,174 million and ¥225 million, respectively, so H2 this fiscal year would need to deliver approximately 27.9% revenue growth and approximately 235% operating profit growth year on year. This is a plan premised on a substantial recovery in profit, rather than merely a rebound from the prior-year period.

That said, the company has historically disclosed a tendency for education-related projects and other orders in the FA robotics segment to be concentrated in H2, so it would be premature to conclude that the full-year forecast will be missed based solely on the H1 progress rate. In Q3, it will be necessary to assess not only how close results have come to the simple 75% benchmarks of ¥7,088 million in revenue and ¥745 million in operating profit, but also the timing of revenue recognition for education-related and corporate projects that would support the H2 weighting.

Regarding the external environment, the company has cited US tariff policy, the situation in Ukraine, the situation in the Middle East, concerns over the supply of crude oil and petroleum products, and continued yen depreciation as risks. In Q3, the focus should be not only on whether the full-year forecast is maintained, but also on the extent to which these external factors are restraining customer investment or delaying projects, and which segments will drive the H2 recovery.