Q1 was front-loaded toward profit, but the scope for meeting the full-year plan will be reassessed at the interim stage

Revenue in Q1 of the fiscal year ending March 2027 was ¥4,941 million, up 9.2% year on year. Operating profit was ¥722 million, up 5.9%, and profit for the quarter attributable to owners of the parent was ¥560 million, up 26.9%. Both revenue and operating profit increased, which the company attributed to growth in high-value-added projects, expansion of rental and construction services, and cost reductions.

Progress against the full-year forecasts was 22.5% for revenue, 28.7% for operating profit and 35.0% for profit attributable to owners of the parent. For Q1, operating profit and net profit are tracking ahead of revenue, so using 50% of the annual figure as a simple interim benchmark would imply ¥11,000 million in revenue, ¥1,260 million in operating profit and ¥800 million in net profit. However, the company has not disclosed an interim forecast based on seasonality or the amounts required for the remaining period.

In the fiscal year ended March 2026, revenue was ¥20,138 million and operating profit was ¥2,488 million, compared with forecasts of ¥22,000 million in revenue and ¥2,520 million in operating profit for the fiscal year ending March 2027. Accordingly, the full-year plan calls for revenue growth of 9.2%, while operating profit growth is limited to 1.3%. The high operating profit progress in Q1 alone is not sufficient to judge whether the full-year result will exceed the forecast. It will be necessary to confirm whether revenue growth and margins are maintained through the first six months.

At the next results announcement, the most important issue will be whether the full-year forecasts of ¥22,000 million, ¥2,520 million and ¥1,600 million are maintained or revised, in addition to the interim results. In particular, we will monitor whether the company provides additional amounts or margin information by factor to explain whether operating profit progress ahead of revenue resulted from the project mix of high-value-added work, cost reductions or factors specific to Q1.