Full-year plan weighted toward the second half; Q3 to confirm execution of delayed projects

Revenue for the first half of FY2026, the fiscal year ending December 2026, was ¥305.631 million, representing 28.3% progress against the full-year forecast of ¥1,080 million. Based on the concentration of large business discussions in particular periods and the seasonality of new orders, the company is maintaining a plan weighted toward the second half for both revenue and profit, although it describes first-half performance as below plan.

To achieve the full-year forecast based on first-half results, the company needs ¥774.369 million in revenue in the second half. The remaining amount against the full-year forecast was ¥935 million at the end of Q1, and although ¥305.631 million was added by the end of Q2, the revenue required over the remaining period is still approximately 2.5 times first-half revenue. The simple nine-month progress benchmark is ¥810 million, but because the company itself assumes seasonality and a concentration of business discussions in particular periods, this level should not be treated as a mechanical performance threshold; it must be assessed together with the likelihood that projects will be recognized as revenue.

Of particular importance is verifying the company’s explanation that some orders scheduled for Q2 were pushed back to Q4. Order intake, order backlog and contract amounts by large project have not been disclosed, so it is unclear how much of the ¥774.369 million shortfall is covered by projects already ordered. In Q3, the reliability of the full-year plan will depend on whether at least some of the following become concrete for the delayed projects: order confirmation, delivery and acceptance conditions, the scheduled month of revenue recognition, and project amount.

On the profit side, the company reported an operating loss of ¥99.287 million in the first half against a full-year operating profit forecast of ¥161 million. Without disclosure of whether Q3 alone can turn profitable and how much operating profit is planned to be concentrated in Q4, the achievability of the full-year forecast cannot be assessed on revenue alone. In the Q3 results, it will be important to confirm not only cumulative revenue and cumulative operating profit or loss, but also the project and cost assumptions underlying the realization of the remaining ¥774.369 million in revenue and annual operating profit of ¥161 million.