Profitability under pressure despite higher revenue, and visibility on the landing after the downward revision

Revenue for the period from January to June 2026 was ¥10,537 million, up ¥624 million, or 6.3%, from ¥9,913 million in the same period of the previous year. However, operating income was ¥1,898 million, down ¥349 million, or 15.5%, from ¥2,247 million. The operating margin calculated from revenue and operating income fell approximately 4.7 percentage points, from approximately 22.7% in the same period of the previous year to approximately 18.0%, indicating that higher revenue has not translated directly into profit growth.

The full-year outlook was revised after the interim period from revenue of ¥23,229 million and operating income of ¥4,403 million as of Q1 to revenue of ¥20,877 million and operating income of ¥2,842 million. The revenue forecast was revised by approximately 10.1%, while the operating income forecast was revised by approximately 35.5%, representing a larger revision on the profit side. Based on interim operating income of ¥1,898 million, ¥944 million of operating income is required in the second half alone to meet the full-year forecast.

The company cites memory shortages and higher prices in the notebook PC market, declining demand in the automotive market, particularly lower new-vehicle sales in the United States, and higher raw-material and energy prices for resins, organic solvents and fuel as downside factors. At the same time, it continues to promote sales of high-value-added products, acquire new overseas customers, improve productivity and strengthen cost competitiveness, and has maintained revenue growth. The amounts attributable to weaker demand, higher costs, product mix and increased sales-promotion expenses have not been disclosed separately, so it is not yet clear which factors account for the decline in operating income.

In FY2026-Q3, the first points to confirm are how far revenue has progressed against the full-year forecast of ¥20,877 million and whether operating income is recovering toward ¥2,842 million. In particular, because the company does not directly disclose its operating margin, investors will need to recalculate it from cumulative Q3 revenue and operating income. If it falls below the interim level of 18.0%, the earnings plan following the downward revision may be under additional pressure. Conversely, it will be important to see whether profit can continue to accumulate while maintaining the same margin level.