FY2027 1Q: Profit growth leads, but full-year guidance unchanged

In 1Q, from April to June 2026, revenue was ¥33,670 million, operating profit was ¥4,737 million, ordinary profit was ¥5,986 million and net profit attributable to owners of the parent was ¥3,671 million. Year on year, revenue increased 5.6%, while operating profit rose 38.8%, ordinary profit 48.4% and net profit 30.6%, with profit growth substantially outpacing revenue growth.

Full-year guidance is revenue of ¥134,000 million, operating profit of ¥15,000 million, ordinary profit of ¥19,000 million and net profit attributable to owners of the parent of ¥14,000 million, with no revisions at the 1Q stage. Progress against the full-year forecasts was 25.1% for revenue, 31.6% for operating profit, 31.5% for ordinary profit and 26.2% for net profit. Operating profit alone was clearly ahead of the 25% elapsed-quarter benchmark. Meanwhile, the full-year revenue forecast is 3.0% below FY2026 actual revenue of ¥138,155 million, indicating that the company plan assumes margin improvement rather than a sharp expansion in sales volume.

The 1Q operating margin was 14.1%, approximately 3.4 percentage points above FY2026's full-year 10.7%. Operating profit benefited by approximately ¥113 million from foreign-exchange translation, while improved profitability in the equipment business and higher revenue in the chemicals and processing businesses also contributed. However, increases in raw-material prices, personnel expenses, depreciation and freight costs continued. Accordingly, the first-half results will need to distinguish whether the profit progress reflects a mere 1Q concentration or structural improvement that has absorbed rising costs.

The company did not prepare a quarterly consolidated statement of cash flows for 1Q, and did not disclose figures for operating cash flow, capital expenditure, orders received or order backlog. For the next results, revenue of around ¥67,000 million and operating profit of at least ¥7,500 million will serve as mechanical progress benchmarks, together with confirmation of whether full-year guidance is maintained or raised and whether the ¥50 dividend is maintained.