First-half revenue and profit increased, but full-year operating profit is trailing revenue in terms of progress

In FY2026 H1, revenue was ¥4,110 million, operating profit was ¥231 million, ordinary profit was ¥214 million, and interim net profit attributable to owners of the parent was ¥89 million. Year on year, revenue increased 24.5%, operating profit 99.8%, ordinary profit 117.1%, and net profit 79.9%, indicating substantial growth in profit as well as revenue. Revenue in the same period a year earlier was ¥3,300 million and operating profit was ¥115 million, meaning operating profit nearly doubled.

The full-year forecasts are ¥8,206 million in revenue, ¥620 million in operating profit, ¥600 million in ordinary profit, and ¥410 million in net profit, with no revision to the forecasts as of the H1 results. Progress against the full-year forecasts was 50.1% for revenue, 37.3% for operating profit, 35.8% for ordinary profit, and 21.8% for net profit. As profit is progressing more slowly than revenue, Q3 should be assessed not only for continued revenue growth but also for margin improvement and the profitability of H2 projects.

The mechanical 75% progress benchmark for cumulative Q3 results is ¥6,154.5 million in revenue and ¥465 million in operating profit. However, this benchmark assumes that profit is generated evenly each quarter, and actual results will vary depending on project delivery schedules and the timing of acceptance for large projects. Accordingly, progress should not be assessed on a simple percentage basis alone. Q3 standalone revenue, operating profit, operating margin, and the timing of revenue recognition for large projects should also be considered.

The earnings summary does not disclose segment profit because the company has a single Security Solutions segment, and margins or progress against the full-year forecast by service cannot be confirmed. In FY2026-Q3, it will be important to determine whether the company can additionally disclose revenue, year-on-year growth, project profitability, and contribution to company-wide operating profit for at least SECURE AC, SECURE VS, SECURE Analytics, and SECURE ES.