First-half revenue and profit growth are broadly on track against the full-year plan, but maintaining profit in the second half is the key focus

In the first half of the fiscal year ending December 2026, revenue was ¥189.653 billion and operating profit was ¥12.573 billion, up 12.4% and 34.1%, respectively, from ¥168.732 billion and ¥9.373 billion in the same period of the previous year. The operating margin improved by approximately 1.1 percentage points, from approximately 5.6% to approximately 6.6%. This indicates an improvement in profitability supported by price revisions and cost measures, rather than merely a recovery in sales volume.

The full-year forecasts are revenue of ¥360.0 billion, operating profit of ¥23.0 billion, ordinary profit of ¥22.5 billion, and net income attributable to owners of the parent of ¥21.0 billion. First-half progress was 52.7% for revenue, 54.7% for operating profit, 65.0% for ordinary profit, and 65.4% for net income. However, ordinary profit and net income include the impact of gains on the sale of investment securities. Accordingly, the key measures to monitor in FY2026-Q3 are operating profit progress and the buildup of the remaining ¥10.427 billion in operating profit over the rest of the period.

Subtracting first-half results from the full-year forecasts leaves ¥170.347 billion in revenue and ¥10.427 billion in operating profit required in the second half. Assuming the same pace as in the first half would imply that the full-year forecasts will be exceeded, but uncertainty remains regarding raw material prices, foreign exchange rates, overseas site utilization, and the timing of price revisions taking effect. If cumulative results for the first 3 quarters are treated as the point at which 75% of the year has elapsed, revenue of ¥270.0 billion and operating profit of ¥17.25 billion provide a mechanical reference point.

The full-year forecasts and dividend forecast were both maintained in the first-half results, but segment-level progress against the full-year forecasts and the sales volume, price revision amount, and cost reduction amount required in the second half have not been disclosed. In FY2026-Q3, the focus will be not only on confirming higher revenue and profit, but also on whether the factors that drove first-half profit growth continued into the third quarter, whether the basis for maintaining the full-year forecasts has been updated, and whether there is more headroom in revenue or operating profit.