First-half profit is ahead of the pace implied by the sales plan, making Q3 the point at which to assess the full-year forecast

First-half results for January through June 2026 were revenue of ¥3,376 million, operating profit of ¥649.920 million, ordinary profit of ¥637.198 million, and interim net profit attributable to owners of the parent of ¥636.154 million. The full-year forecasts are revenue of ¥6,800 million, operating profit of ¥1,000 million, ordinary profit of ¥980 million, and net profit attributable to owners of the parent of ¥930 million. Based on the earnings presentation materials, progress rates were 49.7%, 65.0%, 61.6%, and 68.4%, respectively. Revenue was close to the simple 50% level expected halfway through the year, while operating profit and net profit were well ahead of that pace.

However, as this is the first year following the transition to consolidated financial statements, the company explains that the earnings summary does not provide comparative analysis against the corresponding interim period of the previous year on a consolidated basis. Meanwhile, the earnings presentation materials show revenue up 15.7% year on year and operating profit up 44.6%. Accordingly, when assessing first-half growth and profit improvement, Q3 results need to clarify the basis of comparison, including the change from standalone to consolidated reporting. A simple year-on-year comparison cannot separate the growth of the existing business from the impact of the consolidation scope.

Q2 standalone revenue was ¥1,668 million, operating profit was ¥253 million, ordinary profit was ¥248 million, and net profit was ¥245 million. Q2 alone accounted for 49.4% of first-half revenue and 38.9% of first-half operating profit. Its operating margin was approximately 15.2%, below the first-half cumulative margin of 19.2%. Although cumulative first-half progress makes profit appear to be ahead of plan, the quarterly standalone margin has not remained at the same level.

If the full-year forecast is mechanically converted into quarterly progress targets, nine-month cumulative revenue of ¥5,100 million, operating profit of ¥750 million, and net profit of ¥697.5 million provide one benchmark. The amounts required in Q3 alone from the first-half results are revenue of ¥1,724 million, operating profit of ¥100.1 million, and net profit of ¥61.3 million. These are mechanical benchmarks that do not take seasonality into account and are not the company’s own targets. In the Q3 results, the key points will be the distance from these levels, whether the full-year forecasts are maintained or revised, and whether the operating margin, which declined in Q2 alone, recovers.