FY2026 first-half sales are close to plan, but profit progress is significantly behind

Revenue for the first half ended 30 June 2026 was ¥3,909 million, representing 48.9% progress against the revised full-year forecast of ¥8,000 million. Revenue progress was broadly on plan compared with the 50% expected at the halfway point, but operating profit was only ¥38.985 million, representing 17.7% progress against the full-year forecast of ¥220 million. Given the significant divergence between sales and profit progress, it is necessary to confirm not only the usual second-half seasonality but also whether the assumptions underpinning a recovery in profitability are being realized.

In the second quarter alone, revenue of ¥1,955 million resulted in an operating loss of ¥46 million. Although the company maintained an operating profit on a first-half cumulative basis, profitability deteriorated in the most recent quarter, and the completion of large projects in APAC and the delayed transition to AI-agent development and modernization may continue to weigh on the second half. In FY2026-Q3, the focus will be on whether quarterly operating profit returns to positive territory and whether the causes of the second-quarter loss can be explained by region and segment as either temporary factors or an ongoing lack of projects and decline in gross profit.

To meet the revised forecast, the company needs approximately ¥4,090 million in revenue and approximately ¥181 million in operating profit in the second half. If these are achieved evenly in the third and fourth quarters, the required quarterly figures would be approximately ¥2,045 million in revenue and approximately ¥91 million in operating profit. Moving from the second-quarter operating loss of ¥46 million to this level will require simultaneous confirmation of continued execution of large AMER projects, the launch of new APAC projects, and control of outsourcing and personnel costs. At the next earnings announcement, we will track whether, in addition to any further revision to the full-year forecast, the company can disclose the order intake and start dates for second-half projects, gross profit, and a bridge to operating profit.