Whether first-half results are consistent with full-year loss guidance after a major downward revision

FY2026 results were revenue of ¥11,690 million, operating profit of ¥102 million and net loss attributable to owners of the parent of ¥221 million. Against this, the initial FY2027 guidance was revenue of ¥13,500 million, operating profit of ¥550 million and net profit of ¥280 million, with operating profit planned to improve by ¥448 million from the prior-year result. Following the 25 August revision, however, guidance changed to revenue of ¥11,500 million, an operating loss of ¥200 million and a net loss of ¥170 million. Operating results were therefore expected to come in ¥750 million below the initial plan, while net results were expected to be ¥450 million below plan.

FY2027-Q1 results were revenue of ¥3,464 million and operating profit of ¥55 million, representing progress rates against the initial full-year guidance of 25.7% for revenue and 10.0% for operating profit. Revenue was broadly in line with the 25% elapsed-quarter rate, while profit progress lagged revenue. FY2026-H1 revenue was ¥7,255 million, operating profit was ¥468 million and net profit was ¥60 million. Accordingly, in the next results release, the key issue will be not only the cumulative first-half revenue scale but also the extent of the deviation from the prior-year first-half profit levels.

The company cited a shortage of high-value-added properties, higher raw material prices, and a significant downside to the gross margin due to property cancellations and postponements in the second half as reasons for the August downward revision. The first-half results alone therefore cannot determine whether the full-year loss is temporary. The timing of order intake and construction starts, property unit prices and changes in the cost ratio will also need to be assessed. In particular, to maintain full-year revenue of ¥11,500 million, it will be necessary to confirm whether the combination of first-half results and the second-half revenue plan is consistent with the revised plan.

Although the revised guidance provided includes full-year forecasts, specific new H1 forecasts for revenue, operating results and net results could not be confirmed. In the next results release, we will assess the H1 results, the achievement rate against H1 guidance, the revenue required in the second half, and whether full-year guidance is maintained or revised again. If the year-on-year deterioration continues, the focus will be whether the ¥200 million operating loss is due to temporary project timing differences or structural issues involving demand, pricing and fixed-cost burdens.