First-quarter results were broadly in line with the full-year plan, but acceleration in the second quarter is needed to meet the first-half plan

First-quarter revenue for the fiscal year ending March 2027 was ¥11,808 million, up 4.0% year on year, while operating profit was ¥1,203 million, down 4.3%. The full-year forecasts are ¥53,000 million for revenue and ¥5,600 million for operating profit, putting first-quarter progress at 22.3% for revenue and 21.5% for operating profit. Compared with the simple 25% elapsed-quarter benchmark, neither figure indicates a significant shortfall against the plan, although operating profit progress was 0.8 percentage points below revenue progress.

The first-half forecasts are ¥25,100 million for revenue, ¥2,860 million for operating profit, ¥2,960 million for ordinary profit and ¥1,990 million for net profit. Progress against the first-quarter results was 47.0% for revenue and 42.1% for operating profit, meaning that the second quarter alone must generate ¥13,292 million in revenue and ¥1,657 million in operating profit to meet the first-half plan. These figures are approximately 12.6% above first-quarter revenue and 37.6% above first-quarter operating profit, making the hurdle relatively higher on the profit side.

On a year-on-year basis, first-quarter revenue growth of 4.0% was also below the first-half forecast of 7.5%, while operating profit fell 4.3% against a first-half forecast for 8.0% growth. Accordingly, at the next results announcement it will be necessary to confirm not only whether revenue accelerates through the recognition of projects in the second quarter, but also whether the company absorbed its investment burden and raised the operating margin to around the 11.4% level planned for the first half. The supplementary materials do not explicitly state progress against the full-year forecasts or the company’s own assessment of its plan, making first-half results and whether the full-year forecasts are maintained or revised important factors for assessment.