Q1 operating profit is ahead of the full-year plan; H1 pace to be assessed in Q2

In Q1, from 1 April to 30 June 2026, revenue was ¥1,553 million, up 3.1% year on year, operating profit was ¥132 million, up 86.0%, ordinary profit was ¥140 million, up 84.3%, and net profit was ¥88 million, up 72.0%. While revenue growth was modest, profit items from operating profit downward increased in the high-70% to 80% range, making profit progress ahead of the full-year plan the central feature of this earnings release.

Q1 progress against the full-year forecasts retained by the company was 24.7% for revenue, calculated as ¥1,553 million ÷ ¥6,300 million, 31.4% for operating profit, calculated as ¥132 million ÷ ¥421 million, 33.0% for ordinary profit, calculated as ¥140 million ÷ ¥424 million, and 30.1% for net profit, calculated as ¥88 million ÷ ¥292 million. Revenue was almost at the 25.0% benchmark for an even quarterly pace, while operating profit exceeded that benchmark by 6.4 percentage points. Accordingly, if 50% of the full-year forecast is used as a simple benchmark for cumulative Q2, revenue of ¥3,150 million and operating profit of ¥210.5 million provide reference thresholds.

For comparison with the previous fiscal year, revenue in FY2026 was ¥5,953.592 million and operating profit was ¥351.053 million. The company's FY2027 forecasts are revenue of ¥6,300 million, up 5.8% year on year, operating profit of ¥421 million, up 20.0%, ordinary profit of ¥424 million, up 17.9%, and net profit of ¥292 million. Rather than judging full-year achievement solely on the strong Q1 profit progress, it will be necessary to check at H1 whether the remaining revenue and operating profit required in the second half have become excessively demanding.

The Q1 financial results report disclosed only full-year forecasts and did not provide separate cumulative Q2 forecasts; there were also no revisions from the latest forecasts. Therefore, ¥3,150 million and ¥210.5 million are analytical benchmarks obtained by simply halving the full-year forecasts, not company H1 forecasts. At the next earnings release, the checks will include not only whether actual results exceed these benchmarks, but also whether the company maintains or revises the full-year forecasts of ¥6,300 million and ¥421 million.

Q1 operating margin was approximately 8.5%, calculated as ¥132 million ÷ ¥1,553 million, compared with approximately 5.9% for FY2026, calculated as ¥351.053 million ÷ ¥5,953.592 million, and approximately 6.7% for the FY2027 forecast, calculated as ¥421 million ÷ ¥6,300 million. If the high Q1 margin is maintained in H1, the scope for achieving the plan will widen. If the margin declines toward the full-year plan level, the gap to the full-year forecast will need to be reassessed alongside revenue progress.