Q1 is broadly on track for the full-year plan, but profit progress needs to be assessed in H1

FY2027-Q1 revenue was ¥150,111 million, up 7.0% year on year. Operating profit was ¥18,347 million, up 12.2%, ordinary profit was ¥18,424 million, up 8.0%, and net income attributable to owners of the parent was ¥14,409 million, up 15.1%. The operating margin was 12.2%, up 0.5 percentage points from 11.7% in the same quarter of the previous year, with operating profit growth outpacing revenue growth.

The full-year forecasts are revenue of ¥620,000 million, operating profit of ¥81,000 million, ordinary profit of ¥81,000 million and net income attributable to owners of the parent of ¥57,000 million. They had not been revised as of Q1. Q1 results represented approximately 24.2% of the full-year revenue forecast and approximately 22.7% of the operating profit forecast. Compared with the simple 25% benchmark assuming an even quarterly distribution, revenue is broadly on track, while operating profit is approximately 2.3 percentage points behind, making it necessary to build profit from H1 onward.

The company has not disclosed its own FY2027-H1 revenue and operating profit forecasts, progress rates against the full-year forecasts, the allocation of profit between H1 and H2, or a quantitative explanation of seasonality. Accordingly, the simple 50% benchmarks of ¥310,000 million for revenue and ¥40,500 million for operating profit are only reference points. In practice, the consumption of the order backlog, segment profitability and the timing of investment spending also need to be considered. At the next earnings release, the focus will be not only on continued revenue and profit growth, but also on cumulative H1 profit progress and the reasons for maintaining the full-year forecasts.