First-half revenue down, profit up; the key to meeting the full-year target is the sustainability of core operating profit

In the first half of FY2026 ended December, consolidated revenue was ¥6,299 million, down 2.1% year on year, while operating profit rose 29.8% to ¥399 million and ordinary profit rose 28.2% to ¥518 million. Operating profit increased despite lower revenue, resulting in a simple operating margin of approximately 6.3%. Compared with first-half operating profit of ¥307 million and revenue of ¥6,435 million in the previous year, the increase in profit was driven more by an improved project mix and profitability than by revenue scale.

By segment, Computer Platform revenue decreased 4.0% year on year to ¥4,487 million, while segment profit rose 6.0% to ¥167 million. Media Solutions revenue increased 3.1% to ¥1,784 million, and segment profit increased 21.4% to ¥284 million. Accordingly, the next results release should clarify whether the increase in consolidated operating profit was driven solely by several high-margin projects or was reproduced across multiple businesses, including data centers, Data Solutions and Information Platform.

The full-year forecasts are revenue of ¥14,000 million, operating profit of ¥805 million, ordinary profit of ¥900 million and net profit attributable to owners of the parent of ¥480 million. First-half progress rates are therefore approximately 45.0%, 49.6%, 57.6% and 95.0%, respectively. Revenue and operating profit must increase by ¥7,701 million and ¥406 million, respectively, in the second half. Meanwhile, first-half net profit has already reached 95.0% of the full-year forecast, so net profit alone appears to be on track to exceed the forecast, but this does not directly indicate the progress of core earning power.

First-half extraordinary gains included a ¥50.098 million gain on the sale of fixed assets and a ¥15.745 million reversal gain on asset retirement obligations, for a total of ¥65.843 million. The company explained that the gain on the transfer of the Minakami Solar Power Plant contributed to the increase in interim net profit. In the next results release, it will be important to review operating profit, ordinary profit, pretax profit and net profit through Q3 separately, and to check for any additional gains on fixed-asset sales or impairment losses.