FY2027-H1 is the point at which the revised profit plan will be tested against actual results

The 30 October earnings revision forecasts FY2027-H1 revenue of ¥20,470 million, operating profit of ¥940 million, ordinary profit of ¥910 million and interim net income attributable to owners of the parent of ¥290 million. The previous first-half ordinary profit forecast was ¥560 million, so this represents an upward revision of ¥350 million, or approximately 62.5%. The full-year forecasts were also raised to revenue of ¥41,970 million, operating profit of ¥1,990 million, ordinary profit of ¥2,040 million and net income of ¥910 million. The increases from the previous forecasts were ¥1,710 million for revenue, ¥360 million for operating profit, ¥350 million for ordinary profit and ¥290 million for net income.

FY2027-Q1 results were revenue of ¥10,140 million, operating profit of ¥370 million, ordinary profit of ¥363 million and quarterly net income attributable to owners of the parent of ¥157 million. On a simple comparison, these represented 49.5% of the revised first-half revenue forecast, 39.4% of the operating profit forecast, 39.9% of the ordinary profit forecast and 54.1% of the net income forecast. However, these are mechanical ratios that do not adjust for seasonality, so first-half achievement cannot be determined from Q1 results alone. The next earnings release will need to show how much of the shortfall was covered by Q2 revenue and profit alone.

Regarding the full-year forecasts, from the FY2027-Q1 figures of revenue of ¥40,260 million, operating profit of ¥1,630 million, ordinary profit of ¥1,690 million and net income of ¥620 million, the forecasts were raised by approximately 4.2% for revenue, 22.1% for operating profit, 20.7% for ordinary profit and 46.8% for net income. Accordingly, the focus of the next earnings release is not simply whether the first-half forecasts are achieved, but also whether the 30 October upward revision reflects temporary first-half factors or an improvement in earnings that will continue into the second half.

The company’s FY2027-Q1 presentation cited increased orders in Japan’s vehicle-related business, improved earnings following the transfer of equity interests in China and the foreign-exchange translation effect in Southeast Asia. It also identified uncertainties including the Kumamoto earthquake, raw material and energy prices, geopolitical risks and U.S. policy developments. The next earnings release should clarify the four revised first-half figures, whether the full-year forecasts are maintained or revised again, and how external-environment risks have been reflected in the second-half assumptions.