FY2027 fiscal year ending June: plan for modest revenue and operating profit growth, with Q1 serving as an early check on progress against the plan

Consolidated revenue for the FY2026 fiscal year ending June was ¥3,775 million, up 1.2% year on year, operating profit was ¥368 million, up 1.6%, and ordinary profit was ¥368 million, up 2.7%. However, profit attributable to owners of the parent was only ¥225 million, down 17.0%, so the increase in operating profit did not flow through fully to bottom-line profit. The company’s FY2027 fiscal year ending June forecast is revenue of ¥3,800 million, operating profit of ¥380 million, ordinary profit of ¥380 million and net profit of ¥266 million, implying revenue growth of only 0.6% and operating profit growth of 3.0%. Accordingly, the focus for the next Q1 is not whether the company is achieving rapid growth, but whether the planned gradual revenue growth and profit generation are being delivered from an early stage.

For year-on-year comparison, Q1 of the FY2026 fiscal year ending June generated revenue of ¥742 million, operating profit of ¥60 million and quarterly net profit of ¥34 million. In the comparable Q1 of the FY2025 fiscal year ending June, revenue was ¥803 million, operating profit was ¥26 million and quarterly net profit was ¥17 million, showing that the company’s Q1 revenue and margins can fluctuate substantially. In the next Q1, we will check not only the year-on-year changes but also whether revenue exceeds the recent comparison base of ¥742 million and whether operating profit is maintained at or above ¥60 million.

Dividing the company’s full-year plan mechanically by 4 gives a reference Q1 run rate of ¥950 million in revenue, ¥95 million in operating profit, ¥95 million in ordinary profit and ¥66.5 million in net profit. This is only a simple benchmark that does not account for seasonality or project acceptance timing, and is not a figure disclosed by the company as a Q1 target. Quarterly performance has previously fluctuated depending on the timing of acceptance for large projects. Even if Q1 falls below this run rate, it would not immediately indicate a full-year shortfall if the order backlog and projects scheduled for acceptance in the second half can be confirmed.

In the latest full-year results, the company said that revenue fell slightly short of the initial plan, while the revenue margin improved through better schedule management and work efficiency. In the next results, we will check not only whether the FY2027 fiscal year ending June plan is maintained, but also Q1 revenue and operating profit, project acceptance timing and the remaining amount required to meet the full-year plan. In particular, if Q1 operating profit falls below ¥60 million and revenue also falls below ¥742 million, additional disclosure will be needed to determine whether the year-on-year deterioration reflects a temporary timing difference in project recognition or a change in the assumptions underlying the plan.