FY2027-H1 will show how well the company has recovered from the pullback following large projects and from the trough between projects.

FY2027-Q1 revenue was approximately ¥3,996 million and operating profit was approximately ¥202 million, down sharply from approximately ¥6,491 million and ¥719 million, respectively, in the same quarter of the previous year. The operating margin also fell from approximately 11.1% to approximately 5.0%, indicating deterioration in profitability, including the fixed-cost burden and product mix, beyond a simple decline in sales volume. The company attributes the trough between projects in both cement product businesses mainly to the pullback following large projects and delays in the start of semiconductor plant construction.

Compared with the full-year forecast, Q1 revenue was only 3,995 million yen ÷ 23,900 million yen, or approximately 16.7%, and operating profit was only 201 million yen ÷ 2,790 million yen, or approximately 7.2%, of the plan. Given the civil engineering cement products business's concentration of sales in the second half, it is too early to judge the full-year result based solely on Q1's weakness. However, the company recorded revenue of ¥12,818 million and operating profit of ¥1,410 million in FY2026-H1, making the extent of recovery toward the prior-year level the most direct point of verification in the next interim results.

As of Q1, the full-year forecasts were revenue of ¥23,900 million, operating profit of ¥2,790 million, ordinary profit of ¥2,770 million, and profit attributable to owners of the parent of ¥1,910 million. Subsequently, the forecast for profit attributable to owners of the parent was revised to ¥1,670 million following the Kumamoto earthquake. In FY2027-H1, it will be necessary to confirm not only the recovery in revenue and operating profit, but also whether underlying earnings, excluding one-off factors including the earthquake impact, are tracking the plan and whether previously undisclosed items such as orders received, order backlog, and regional revenue can be supplemented.