FY2027-Q1 progress toward the final-year BEIT50 target is the focus

Consolidated revenue in FY2026 was ¥29,424 million and operating profit was ¥2,619 million, increases of 9.4% and 20.7%, respectively, from the previous year. From FY2025 revenue of ¥26,899 million and operating profit of ¥2,170 million, not only the scale of revenue but also the pace of profit growth accelerated. The FY2026 earnings presentation stated that the operating margin improved by 0.8 percentage points to 8.9%, from 8.1% the previous year. In the next stage of growth, achieving both revenue expansion and maintaining profitability will be important.

The FY2027 targets, the final year of the Seventh Medium-Term Management Plan, are revenue of ¥31,000 million and operating profit of ¥2,750 million. Compared with FY2026 results, revenue must increase by ¥1,576 million, or 5.4%, while operating profit must increase by ¥131 million, or 5.0%. The plan does not assume that the sharp increase in profit in FY2026 will continue at the same pace. Instead, it appears to assume steady revenue growth while maintaining a margin of approximately 8.9%.

Because the company has not disclosed official quarterly targets for FY2027-Q1, the figures of ¥7,750 million in revenue and ¥687.5 million in operating profit are only reference benchmarks based on a simple division of the full-year targets by 4. Actual results may fluctuate depending on seasonality and project progress. At the next earnings release, it will be necessary to check not only the distance from these levels, but also whether orders in the public-sector and energy fields have progressed to revenue recognition and whether the margin improvement achieved in FY2026 has been maintained. In the cumulative first 3 quarters of FY2026, operating profit had reached ¥2,162 million, or 96.1% of the full-year forecast of ¥2,250 million. Accordingly, FY2027-Q1 will be subject to particularly close scrutiny regarding the reproducibility of the high profit level.