Cumulative third-quarter profit is well ahead of the full-year forecast, making the potential for an upside surprise in full-year results the focus.

Cumulative third-quarter revenue for FY2026 (fiscal year ending September 2026) was ¥3,513 million, up 7.6% year on year, while operating profit was ¥357 million, up 107.2%. Ordinary profit was ¥439 million and net income attributable to owners of the parent was ¥351 million, representing year-on-year increases of 128.8% and 143.1%, respectively, well above the growth in revenue.

The full-year forecasts are revenue of ¥4,530 million, operating profit of ¥234 million, ordinary profit of ¥247 million and net income of ¥191 million. Cumulative third-quarter progress was 77.5% for revenue, 152.6% for operating profit, 177.7% for ordinary profit and 183.8% for net income. Revenue still needs to increase by ¥1,017 million to reach the full-year forecast, but the three profit measures have already exceeded their full-year forecasts by ¥123 million to ¥192 million.

The increases from the first half through the third quarter were approximately ¥1,245 million for revenue and approximately ¥177 million for operating profit. This indicates that the standalone third quarter made a significant contribution to profit, but cumulative profit will not necessarily translate directly into full-year profit if demand, foreign exchange rates or raw material costs fluctuate in the fourth quarter. The forecast-beating profit therefore needs to be assessed in light of seasonality and temporary factors, rather than treated simply as an upside surprise.

Despite profit significantly exceeding the full-year forecasts, the earnings forecasts were not revised in the latest results. At the next results announcement, attention will be on how far revenue exceeds ¥4,530 million and operating profit exceeds ¥234 million, as well as whether fourth-quarter operating profit remains positive. In particular, whether the full-year operating margin can remain close to the approximately 10.2% recorded for the cumulative third quarter will be a benchmark for assessing the sustainability of earnings growth.