Strong first-quarter performance is in line with the full-year plan, but confidence in achieving the plan will be reassessed in FY2027-H1

First-quarter revenue for the fiscal year ending March 2027 was ¥2,772 million, up 20.5% year on year, while operating profit was ¥440 million, up 51.6%. Ordinary profit was ¥517 million and net income was ¥353 million, with the main profit measures also exceeding the year-earlier levels. Growth rates differed between revenue and operating profit, and the operating margin rose from approximately 12.6% in the year-earlier quarter to 15.9%.

The full-year forecast was left unchanged at revenue of ¥11,800 million, operating profit of ¥1,980 million, ordinary profit of ¥2,300 million and net income of ¥1,575 million. First-quarter progress against the full-year forecast was approximately 23.5% for revenue and 22.3% for operating profit, slightly below the 25% mark after three months. Although the company described the April–June quarter as strong, it said results were “generally within the planned range,” indicating that it does not yet consider the performance strong enough to warrant an upward revision.

Based on a simple calculation from first-quarter results, the remaining revenue required to achieve the full-year forecast is approximately ¥9,027 million, while the remaining operating profit required is approximately ¥1,539 million. Assuming these amounts are achieved evenly over the remaining 9 months, quarterly revenue of approximately ¥3,009 million and operating profit of approximately ¥513 million would be required. However, because the company has not disclosed quarterly seasonality or first-half guidance, revenue of ¥5,900 million and operating profit of ¥990 million should be treated as benchmarks for measuring simple 50% progress, not as company guidance.

At the next results announcement, we will assess where first-half revenue and operating profit stand against these benchmarks, as well as the basis for maintaining the full-year forecast. More important than simple progress rates will be whether projects for government agencies and social infrastructure are concentrated in the second half, when revenue from space-related and autonomous-vehicle projects is recognized, and whether the high first-quarter operating margin can be replicated in the second half.