FY2027 profitability outlook: confirm narrowing operating losses in the cumulative second quarter before assessing the shift to profitability

Revenue for FY2026 was ¥2,875 million, while the operating loss was ¥282 million, the ordinary loss was ¥268 million and net loss attributable to owners of the parent was ¥462 million. The operating loss widened by ¥207 million from ¥75 million in FY2025, meaning the company entered FY2027 after a significant deterioration in profitability, including the cost burden associated with its business transformation, rather than merely higher revenue accompanied by lower profit.

For FY2027, the company forecasts revenue of ¥3,300 million, operating profit of ¥50 million, ordinary profit of ¥50 million and net income attributable to owners of the parent of ¥30 million. Turning the FY2026 operating loss of ¥282 million into operating profit of ¥50 million requires a ¥332 million improvement in operating income, while the forecast also assumes a 14.8% year-on-year increase in revenue. First-quarter revenue of ¥688 million represents 20.8% of the full-year forecast, so if half of the annual forecast is used as a simple benchmark, cumulative second-quarter revenue of ¥1,650 million would be one reference point.

First-quarter revenue rose 5.1% year on year to ¥688 million, while the operating loss was ¥78 million, the ordinary loss was ¥76 million and the net loss was ¥78 million. This was an ¥18 million improvement from the operating loss of ¥96 million in the year-earlier quarter, but the company still fell ¥128 million short of the full-year operating profit forecast of ¥50 million. The next results should show whether the cumulative second-quarter operating loss narrows from ¥78 million in the first quarter and whether losses improve in the second quarter alone.

The company has previously explained that delivery deadlines for large contract projects are concentrated at the end of the fiscal year, which may cause revenue and profit to be weighted toward the fourth quarter. Accordingly, failure to reach 50% on a cumulative second-quarter basis alone does not establish that the full-year forecast will be missed. At the same time, operating cash flow was an outflow of ¥136 million in FY2026. The key issue to verify in the next results is whether the current profitability forecast depends solely on booking projects in the fourth quarter or whether underlying earning power is already improving in the first half.