1Q earnings progress is ahead of revenue; FY2027-H1 to test the achievability of the full-year plan

In the first quarter from April to June 2026, revenue was ¥11,707 million, operating profit was ¥918 million, ordinary profit was ¥2,049 million, and net income attributable to owners of the parent was ¥1,660 million. Year on year, revenue increased 45.7%, operating profit 45.8%, ordinary profit 33.4%, and net income 31.2%, with all major profit measures increasing.

1Q progress against the full-year forecast was 25.7% for revenue, calculated as ¥11,707 million ÷ ¥45,500 million, and 31.7% for operating profit, calculated as ¥918 million ÷ ¥2,900 million. Ordinary profit reached 50.0%, calculated as ¥2,049 million ÷ ¥4,100 million, while net income reached 48.8%, calculated as ¥1,660 million ÷ ¥3,400 million, meaning earnings progress was ahead of revenue. However, ordinary profit and net income are affected by non-operating gains and losses and seasonality, so it is too early to judge full-year performance based solely on 1Q progress.

The company attributed the 1Q revenue and earnings growth to progress on large projects, including Osaka IR-related construction, and firm product shipments and construction activity in the sewerage-related business. Accordingly, in FY2027-H1 it will be necessary to determine whether the revenue and profit from large projects recorded in 1Q represent one-off progress, or whether construction has continued since July. Revenue and profit contributions by large project had not been disclosed as of 1Q.

Using 50% of the full-year forecast as a simple H1 benchmark, the confirmation thresholds are revenue of ¥22,750 million, operating profit of ¥1,450 million, ordinary profit of ¥2,050 million, and net income of ¥1,700 million. If both operating profit and revenue exceed these levels, the possibility of an upward revision to the full-year operating profit forecast of ¥2,900 million will become a point of focus. Conversely, if operating profit exceeds 50% but revenue remains below ¥22,750 million, the project mix and changes in profitability should be assessed separately.