FY2027 1Q is ahead of the full-year plan, but achievement of the 2Q plan is the next checkpoint

Consolidated revenue for FY2027 1Q was ¥25,201 million, operating profit was ¥3,289 million, ordinary profit was ¥3,799 million and net income attributable to owners of the parent was ¥2,639 million. Year on year, revenue increased 12.9%, operating profit 37.3%, ordinary profit 42.8% and net income 27.8%, with both revenue and all profit categories increasing. The operating margin was approximately 13.1%, an improvement of approximately 2.3 percentage points from approximately 10.7% in the same period of the previous year.

At the same time as announcing its 1Q results, the company forecast first-half FY2027 revenue of ¥50,000 million, operating profit of ¥5,600 million, ordinary profit of ¥5,700 million and net income of ¥5,400 million. Progress against the first-half plan was approximately 50.4% for revenue, 58.7% for operating profit, 66.6% for ordinary profit and 48.9% for net income. First-half revenue and operating profit in the previous year were ¥45,868 million and ¥4,597 million, respectively, meaning that the first-half plan assumes year-on-year growth of approximately 9.0% in revenue and 21.8% in operating profit.

Simply subtracting 1Q results from the plan means that standalone 2Q revenue of ¥24,799 million and operating profit of ¥2,311 million will be required. The strong progress in 1Q provides a cushion for operating profit, but revenue will need to be roughly in line with 1Q again in the next quarter. The first-half results should clarify whether 1Q growth reflected increased demand in Japan and overseas and an improved product mix, rather than a temporary yen depreciation effect or a concentration of shipments of specific products.

The full-year forecasts are revenue of ¥97,000 million, operating profit of ¥9,900 million, ordinary profit of ¥9,800 million and net income of ¥9,800 million. Compared with FY2026 revenue of ¥92,298 million and operating profit of ¥8,678 million, these forecasts imply revenue growth of 5.1% and operating profit growth of 14.1%. As the full-year forecasts were also revised in 1Q, the next results should be assessed not only on whether the first-half plan was achieved, but also on whether progress toward full-year operating profit of ¥9,900 million reaches approximately 56.7% or more and whether the full-year forecasts are maintained after the first half.