Q1 is well ahead of plan, but the feasibility of the FY2027 forecast for lower operating profit will be assessed in H1

In the first quarter of the fiscal year ending March 2027, revenue was ¥25,225 million, operating profit was ¥1,464 million, ordinary profit was ¥2,129 million, and profit attributable to owners of the parent was ¥1,646 million. Year on year, revenue increased 3.9%, operating profit 10.5%, ordinary profit 7.3%, and net profit 20.2%, with all major profit measures higher. On a simple calculation, progress against the full-year forecasts was 25.2% for revenue, 45.8% for operating profit, 36.7% for ordinary profit, and 35.8% for net profit, meaning profit is running ahead of revenue.

However, actual results for the fiscal year ended March 2026 were revenue of ¥95,413 million, operating profit of ¥4,296 million, ordinary profit of ¥5,728 million, and net profit of ¥4,368 million, compared with the company's forecasts for the fiscal year ending March 2027 of ¥100,000 million, ¥3,200 million, ¥5,800 million, and ¥4,600 million, respectively. Revenue is expected to rise 4.8%, ordinary profit 1.3%, and net profit 5.3%, while operating profit alone is forecast to decline 25.5%. The plan therefore assumes that revenue growth will not translate directly into higher operating profit.

After deducting Q1 operating profit of ¥1,464 million, the company will need to generate ¥1,736 million in operating profit from Q2 onward to meet its full-year forecast. Rather than judging full-year achievement solely on Q1's high progress rate, investors should assess in H1 whether the decline in the specialty materials business continues, whether strong growth in the environmental business is sustained, and whether price increases can absorb higher raw material, fuel, and fixed costs. The materials provided do not include a separate company plan for H1 or a quarterly breakdown of the full-year operating profit forecast. Accordingly, the profit assumptions for the remaining period and the basis for maintaining the forecast will be important disclosure items in the H1 results.