Parent-attributable profit reached 23% of the full-year forecast in Q1; sustainability of the upside to be assessed in Q2

In the first quarter from April to June 2026, revenue rose 39.3% year on year to ¥834.2 billion. Profit before tax increased 64.8% year on year to ¥41.1 billion, while quarterly profit attributable to owners of the parent rose 43.4% to ¥30.2 billion, representing a strong start against the full-year plan on the surface. Operating income is not presented in this IFRS-based disclosure, so progress must be tracked using profit before tax and net profit.

Progress against the full-year forecasts was 25% for gross profit, 24% for profit before tax and 23% for profit attributable to owners of the parent. Underlying operating cash flow was also ¥40.0 billion in Q1, representing 27% progress against the full-year plan. Applying a simple even half-year allocation, cumulative first-half figures of ¥65.0 billion for parent-attributable profit, ¥85.0 billion for profit before tax and ¥220.0 billion for gross profit would provide reference points. These are analytical benchmarks calculated mechanically from the full-year forecasts, not the company’s official quarterly plan.

The Q1 earnings increase included the consolidation of an electricity and gas retail business, the new consolidation of Australian public transportation and Australian infrastructure development businesses, growth in energy-saving-related and chemical trading, and higher market prices. Accordingly, standalone Q1 figures alone cannot distinguish whether the ¥30.2 billion profit arose from the underlying strength of existing businesses or was substantially boosted temporarily by new consolidations and market factors. The next results should confirm whether projects that contributed to Q1 earnings growth continue to contribute at the same pace in Q2.

Because full-year forecasts for revenue and operating income have not been provided, progress based on revenue and profit margins at the operating level cannot be calculated. In the first-half results, it will be important to see whether the company discloses whether full-year forecasts have been maintained or revised, an operating income or equivalent management metric, and the contribution from newly consolidated businesses to the full-year forecast.