Lower revenue and profit for the 3Q cumulative period prompt downward revisions to the full-year plan, including profit

For the 3Q cumulative period of the fiscal year ending November 2026, revenue was ¥3,706.0 million, operating profit was ¥167.576 million, ordinary profit was ¥167.564 million, and net profit attributable to owners of the parent was ¥97.637 million. Compared with revenue of ¥3,879.9 million and operating profit of ¥193.4 million in the same period of the previous year, revenue declined 4.5% and operating profit declined 13.4%, with profit declining faster than revenue.

The revised full-year forecasts are revenue of ¥4,956 million, operating profit of ¥196 million, ordinary profit of ¥194 million, and net profit attributable to owners of the parent of ¥110 million. The 3Q cumulative progress rates were 74.8% for revenue, 85.5% for operating profit, 86.4% for ordinary profit, and 88.8% for net profit. While profit is ahead of the time-period progress rate, this progress is based on a full-year plan that has itself been cut, which warrants attention.

The supplementary materials and disclosures issued on the same day reduced the previous forecasts by ¥743 million for revenue, ¥89 million for operating profit, ¥83 million for ordinary profit, and ¥62 million for net profit. The main factors cited were the year-on-year decline following the large transportation and logistics projects recorded in the previous year, delays in the start of certain projects, a reduction in planned staffing due to changes in customer policies, lost opportunities caused by engineer shortages, and delays in receiving new orders for Wisebook PVS projects.

Based on the revised forecasts, the amounts required in 4Q are ¥1,250 million in revenue, ¥28.424 million in operating profit, ¥26.436 million in ordinary profit, and ¥12.363 million in net profit. 4Q revenue represents 25.2% of the full-year forecast, while 4Q operating profit represents 14.5%. It will therefore be important to monitor the timing of project starts, billable hours, and order-delivery progress in 4Q. The main earnings release does not sufficiently break down the detailed differences before and after the revision or the assumptions underlying the full-year forecasts, so the next results should also be reviewed for performance against the revised plan.