First-half operating profit is behind the full-year forecast; profit generation in the second half is the focus

In FY2026-H1, consolidated revenue was ¥38,322 million, operating profit was ¥7,379 million, and net profit attributable to owners of the parent was ¥5,165 million, representing increases of 7.5%, 3.8% and 13.0%, respectively, from the same period of the previous fiscal year. The full-year forecasts are revenue of ¥80,600 million, operating profit of ¥17,500 million and net profit of ¥11,800 million, resulting in H1 progress rates of 47.5%, 42.2% and 43.8%, respectively. The first point to verify in Q3 is that profit is progressing more slowly than revenue.

Simply dividing the full-year forecast between H1 and H2 leaves required second-half revenue of ¥42,278 million, operating profit of ¥10,121 million and net profit of ¥6,635 million. These represent 52.5% of the full-year revenue forecast, 57.8% of the operating profit forecast and 56.2% of the net profit forecast, indicating a high degree of dependence on the second half for profit. The mechanical 75% progress benchmarks through Q3 are revenue of ¥60,450 million, operating profit of ¥13,125 million and net profit of ¥8,850 million, but these are reference values that do not reflect seasonality, not quarterly targets disclosed by the company.

The FY2026-Q2 disclosure showed only cumulative figures for January through June, not standalone revenue and operating profit for the three months from April through June. It is therefore not currently possible to determine whether the H1 earnings growth continued from Q1 or whether project progress and temporary revenue were concentrated in Q2. The full-year forecasts have also not been revised from revenue of ¥80,600 million and operating profit of ¥17,500 million, indicating that the company is maintaining its plan based on project progress in the second half.

In Q3, review cumulative revenue, operating profit and net profit, as well as whether large projects are behind the assumptions made as of Q2. If operating profit is below the mechanical 75% benchmark of ¥13,125 million, the profit required in Q4 will be greater, making the timing of project releases, profitability and any additional hiring important points to check. Conversely, if cumulative Q3 operating profit progress recovers to the low 50% range and the gap to the full-year forecast narrows, the H1 delay can more readily be viewed as a matter of project timing.