First-quarter revenue reached 23.0% of the full-year forecast, while profit attainment remained in the single digits

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥5,741 million, up 11.2% year on year. Revenue increased by ¥580 million from ¥5,161 million in the same quarter of the previous year, while operating profit improved from an operating loss of ¥89 million to a profit of ¥22 million. Ordinary profit was ¥32 million, and net income for the quarter attributable to owners of the parent was ¥10 million. The company attributed the revenue increase to shipments for large projects in Japan and overseas and progress on steel-frame construction in its construction materials business.

The full-year forecasts remain unchanged at revenue of ¥25,000 million, gross profit of ¥7,088 million, operating profit of ¥603 million, ordinary profit of ¥600 million and net income of ¥159 million. First-quarter revenue attainment was 23.0% and gross profit attainment was 22.1%, broadly in line with the fact that the quarter represents one-fourth of the fiscal year. Operating profit, however, was ¥22 million, equivalent to a calculated attainment rate of approximately 3.7%, while ordinary profit and net income were only 5.5% and 6.5%, respectively. The gross margin was also 27.3%, down 0.1 percentage points year on year, indicating that higher revenue did not directly lead to an improvement in margins.

The first-quarter materials provided do not disclose standalone FY2027-H1 revenue or operating profit forecasts, or segment targets for the first half. Accordingly, at the next earnings announcement it will be necessary to check whether cumulative second-quarter revenue is continuing to grow as large projects are recognized, how much operating profit has increased from ¥22 million, and whether the gross margin can remain in the 27% range. Even if the full-year forecasts are maintained, the company will need to explain its profit-generation capacity over the remaining period, including cost burdens as well as the timing of project recognition.