First-half operating profit reaches 95% of full-year forecast; sustainability of earnings is the focus from Q3 onward

Revenue in the FY2026 interim period was ¥14,969 million, up 6.9% year on year. Operating profit was ¥351 million, ordinary profit was ¥354 million and interim net profit was ¥213 million, representing significant improvements from ¥139 million, ¥139 million and ¥72 million, respectively, in the same period of the previous year. Operating profit grew 151.1%, substantially outpacing revenue growth.

The full-year forecasts remain unchanged as of the earnings announcement, at revenue of ¥32,900 million, operating profit of ¥370 million, ordinary profit of ¥310 million and net profit of ¥180 million. Revenue progress in the interim period was 45.5%, below the simple time-apportionment benchmark of 50%, while operating profit, ordinary profit and net profit had reached 94.9%, 114.2% and 118.3%, respectively. The amounts still required to achieve the full-year forecasts are ¥17,931 million of revenue and ¥19 million of operating profit; ordinary profit and net profit already exceeded their full-year forecasts by ¥44 million and ¥33 million, respectively.

This progress suggests both that profit may have been concentrated in the first half and that the full-year forecasts may be conservative. At the Q3 results announcement, it will be important to determine whether cumulative operating profit remains at or above ¥351 million and whether the operating margin avoids a significant decline from approximately 2.35% in the interim period. The company attributes the profit growth qualitatively to product mix, production efficiency and cost reductions, but has not disclosed a quantitative breakdown by factor. If the full-year forecasts are maintained at Q3, additional explanation of second-half cost assumptions and profit seasonality will be important.