First-quarter results are on plan, but second-quarter momentum is needed to meet the first-half target

Revenue for the first quarter of the fiscal year ending March 2027 was ¥4,195 million, while operating profit was ¥562 million, up 1.2% and 2.3%, respectively, year on year. The full-year forecasts are ¥18,200 million in revenue and ¥2,400 million in operating profit, putting first-quarter progress at 23.1% for revenue and 23.4% for operating profit. The company described progress against its initial internal plan as “in line with expectations,” and no information currently indicates downside risk to the full-year plan.

By comparison, revenue in the first half of the fiscal year ended March 2026 was ¥8,506 million and operating profit was ¥1,103 million. Starting from this year’s first-quarter results, reaching the prior-year first-half level would require second-quarter revenue of ¥4,311 million and operating profit of ¥541 million. These are different from the levels required to meet the full-year forecasts, but they provide a benchmark for determining whether first-half demand and project progress are holding up year on year.

The first-quarter materials do not disclose progress against the full-year forecasts or numerical first-half targets. Although the company says it expects results to increase gradually toward the second half, it has not provided the specific revenue and profit amounts required from the second quarter onward. It is therefore too early to assess full-year achievement based solely on first-quarter progress of around 23%; cumulative first-half results and the start dates of major projects also need to be checked.

At the next results announcement, it will be important to see whether first-half revenue and operating profit results are accompanied by explicit progress rates against the full-year forecasts. In particular, if second-quarter revenue alone falls below ¥4,311 million and operating profit below ¥541 million, additional projects will be needed to maintain growth against the prior-year first half. Conversely, if these levels are exceeded and the forecasts of ¥18.2 billion in revenue and ¥2.4 billion in operating profit are maintained, confidence in the company’s description of progress as on plan will increase.