The FY2027 plan for higher revenue and profit will first be tested by a recovery in first-quarter earnings

FY2026 revenue increased 6.7% year on year to ¥18,808 million, but operating profit was ¥1,504 million and profit attributable to owners of the parent was ¥984 million, down 12.1% and 11.9%, respectively. The operating margin also fell from 9.7% to 8.0%, so the starting point for the next earnings release is that higher revenue has not translated directly into profit growth.

The company’s FY2027 full-year forecasts are revenue of ¥20,699 million, operating profit of ¥1,697 million and profit attributable to owners of the parent of ¥1,101 million, representing expected year-on-year increases of 10.1%, 12.9% and 11.9%, respectively. In other words, the plan assumes that the decline in profitability in FY2026 was a temporary issue related to project mix and that profit growth will resume in FY2027. Since no specific internal first-quarter targets or quarterly forecasts against the full-year estimates have been disclosed, comparison with the previous year’s results will be the first benchmark.

In the first quarter of FY2026, revenue was ¥4,113 million, operating profit was ¥256 million and profit attributable to owners of the parent was ¥155 million. The operating margin was approximately 6.2%. At the next earnings release, it will be necessary to confirm not only whether revenue exceeds this level, but also whether operating profit exceeds ¥256 million and whether profit growth exceeds revenue growth. In particular, if profit is flat or declines year on year against the full-year operating profit target of ¥1,697 million, the assumed return to profit growth in FY2027 may be being deferred.

In the six months ended September 2025, operating profit was ¥773 million, down 14.9% year on year, while operating profit for the nine months ended December 2025 was ¥1,115 million, down 21.9%. Although the full-year decline narrowed to 12.1%, this reflected improvement from profit recognition in the second half. The next earnings release will therefore need to confirm whether that improvement has continued into the new fiscal year.