Can the first-half shortfall be recovered in the second half? This is the key issue for the full-year outlook

For the interim period from January through June 2026, consolidated revenue was ¥2,280.247 million, down ¥117.234 million, or 4.9%, from ¥2,397.481 million in the same period of the previous year. Operating results swung from a ¥6.561 million profit in the previous interim period to a ¥76.123 million loss. The company recorded an ordinary loss of ¥71 million and an interim net loss attributable to owners of the parent of ¥113 million. Revenue had reached 43.8% of the full-year forecast of ¥5,200 million, approximately 6.2 percentage points below the 50% mark at the halfway point of the year.

A simple reverse calculation based on the company’s plan indicates that second-half revenue of ¥2,919.753 million is required. In addition, achieving the full-year operating profit forecast of ¥240 million requires the company to first offset the first-half operating loss of ¥76.123 million and then generate second-half operating profit of ¥316.123 million. Compared with the previous full-year results of revenue of ¥4,779 million and operating profit of ¥36 million, the plan calls for revenue to rise by ¥421 million and operating profit by ¥204 million. This presupposes a substantial improvement in profitability, rather than a simple seasonal recovery.

Previous disclosures indicate a degree of second-half concentration: in the fiscal year ended December 2022, 30% of annual revenue and 46% of operating profit were concentrated in the fourth quarter. In FY2025, second-half revenue from the interim period through the full year was approximately ¥2,381.5 million, while second-half operating profit was approximately ¥29.4 million. For FY2026-Q3, cumulative nine-month revenue, order backlog, acceptance timing and the progress of unfinished projects need to be reviewed to determine whether the projects supporting the full-year forecast are genuinely scheduled for the second half. The interim financial results report did not disclose order intake, order backlog or supplementary earnings materials, leaving insufficient project-level information to support the full-year forecast.