Q1 was broadly on track with the full-year plan, but H1 will focus on order accumulation

Consolidated revenue in FY2027 Q1 was ¥23,799 million, up 5.5% year on year, and operating profit was ¥3,834 million, up 9.0%. Ordinary profit was ¥3,984 million and net income attributable to owners of the parent was ¥2,668 million, up 6.3% and 3.1%, respectively. The operating margin was approximately 16.1%, improving by approximately 0.5 percentage points from approximately 15.6% a year earlier.

Progress against the full-year forecasts was approximately 24.3% for revenue, calculated as ¥23,799 million divided by ¥98,000 million, and approximately 24.0% for operating profit, calculated as ¥3,834 million divided by ¥15,960 million. The gaps from the 25% elapsed-quarter benchmark were only approximately 0.7 percentage points for revenue and 1.0 percentage point for operating profit, so performance is currently broadly on plan. However, viewed simply at the H1 midpoint, revenue of ¥49,000 million and operating profit of ¥7,980 million provide reference points, making Q2 order recognition and margins important at the next results announcement.

The company has not changed its full-year forecasts of revenue of ¥98,000 million, operating profit of ¥15,960 million, ordinary profit of ¥15,960 million, and net income attributable to owners of the parent of ¥10,630 million. The amounts still required after Q1 are revenue of ¥74,201 million and operating profit of ¥12,126 million. The next results should be reviewed for excessive concentration of orders in H2 and the stability of order backlog conversion. Q1 orders received were ¥14,688 million and the order backlog was ¥23,262 million; the key issue for the next H1 results will be whether changes in this balance and its breakdown by segment are disclosed.

Operating cash flow was positive ¥1,883 million, period-end cash and cash equivalents were ¥29,139 million, and the equity ratio was 67.8%. There were no applicable extraordinary gains or losses or impairment losses, and no indication that profit growth depended on temporary special factors. Investing cash flow was positive ¥235 million and financing cash flow was negative ¥2,805 million. The next results should assess whether operating cash generation is keeping pace with profit growth.