Q1 sales ahead of plan for FY2027, while profit is slightly behind

Revenue in Q1 of the fiscal year ending March 2027 was ¥6,666 million, operating profit was ¥834 million, ordinary profit was ¥878 million, and net income attributable to owners of the parent was ¥593 million. These figures increased 12.4%, 21.6%, 23.5%, and 18.8%, respectively, year on year, with both the top line and all profit measures increasing. The full-year plan calls for revenue of ¥29,000 million, operating profit of ¥4,200 million, ordinary profit of ¥4,300 million, and net income of ¥3,000 million. At least, the year-on-year trend of higher revenue and profit has been maintained.

Mechanical progress against the full-year plan is 23.0% for revenue, calculated as ¥6,666 million divided by ¥29,000 million, and 19.9% for operating profit, calculated as ¥834 million divided by ¥4,200 million. This does not mean that the company expects to recognize profit evenly each quarter, but compared with a simple 25% benchmark, revenue is broadly on track while operating profit is 5.1 percentage points behind. Accordingly, at the next interim results, the simple first-half benchmarks of ¥14,500 million for revenue and ¥2,100 million for operating profit will provide a reference point for assessing the timing of profit recognition, including any second-half weighting and the timing of project acceptance.

In FY2026-H1, revenue was ¥12,315 million and operating profit was ¥1,623 million. Merely exceeding these levels in FY2027-H1 would set minimum year-on-year growth thresholds of more than ¥12,315 million for revenue and more than ¥1,623 million for operating profit. Although Q1 revenue exceeded the prior-year quarter, operating profit declined in the Customer Co-Creation Business. The key issue will be how much of the first-half revenue growth is converted into profit.

There was no revision to the full-year earnings forecast at the Q1 results, and the ¥29,000 million revenue and ¥4,200 million operating profit targets were maintained. However, the company has not quantified the order intake, scheduled project acceptances, segment-level profit assumptions, or project seasonality required to achieve the full-year forecast. At the next results, it will be necessary to confirm not only whether the full-year forecast is maintained, but also the company’s assessment of first-half performance, the revenue and operating profit required in the second half, and the timing of acceptance for major projects.