Assess progress against the full-year plan after the upward revision and dependence on the second half

FY2027-Q1 revenue was ¥102,715 million, up 21.5% year on year, operating profit was ¥8,371 million, up 85.7%, ordinary profit was ¥7,605 million, up 93.2%, and quarterly net profit attributable to owners of the parent was ¥4,809 million, up 100.5%. Revenue and profit at each level reached record highs for a first quarter, indicating a strong start.

However, Q1 progress against the full-year forecasts was 22.3% for revenue, approximately 24.3% for operating profit, approximately 24.1% for ordinary profit and approximately 24.9% for net profit. The full-year forecasts are revenue of ¥460,000 million, operating profit of ¥34,500 million, ordinary profit of ¥31,500 million and net profit of ¥19,300 million. Revenue is expected to increase 16.8% from FY2026 actual revenue of ¥393,905 million, while operating profit is expected to increase 27.8% from ¥26,995 million. Following the strong first-quarter performance, the revenue forecast was raised by ¥10,000 million from the previous forecast.

However, the company's business structure causes revenue to be weighted toward the second half because of the seasonality of housing handovers. The second-half revenue ratios in prior years were 52.2% in FY2020, 50.4% in FY2022 and 57.2% in FY2023, making it difficult to assess full-year progress simply by comparing Q1 progress with 25%. At the next results, it will be necessary to assess the extent to which first-half revenue and profit growth was achieved against FY2026-H1 revenue of ¥181,190 million and operating profit of ¥11,246 million.

In FY2027-H1, it will be important not only for revenue to exceed the year-earlier period, but also for operating profit to reach at least around 30% of the full-year forecast of ¥34,500 million. The first-quarter earnings release did not provide specific figures for the performance forecasts before the revision. Accordingly, a key focus at the next results will be whether the company discloses the plan after the upward revision, the revenue and profit required in the second half, and expected handovers in light of seasonality.