FY2026 full-year revenue remains at risk of missing plan, while operating profit is tracking above plan

Revenue for the first 9 months of the fiscal year ending September 2026 was ¥7,709 million, down 5.5% year on year. Operating profit was ¥1,160 million, up 18.5%, while ordinary profit was ¥870 million, up 3.0%. Net profit was ¥567 million, down 1.9%, indicating that operating profitability improved despite lower revenue.

The company's full-year forecasts are revenue of ¥10,500 million, operating profit of ¥1,470 million, ordinary profit of ¥1,117 million and net profit of ¥725 million. Progress after the first 9 months is 73.4% for revenue, 78.9% for operating profit, 77.9% for ordinary profit and 78.2% for net profit. Compared with the simple time-based progress rate of 75% after 9 months, revenue is the only item running somewhat behind, while the profit items are broadly on or above plan.

To meet the full-year forecasts, the company needs to generate approximately ¥2,791 million in revenue and ¥310 million in operating profit in Q4. The earnings presentation indicates plans to record 1 contracted property sale and 2 completed-property handovers as flow revenue in Q4, so the revenue shortfall depends not only on recurring income but also on the timing of property sales and design-and-construction revenue recognition. Property sales and construction contracts are prone to quarterly fluctuations caused by delays in handover timing, making it necessary to confirm not only the number of transactions but also actual handover completion and gross profit.

At the next earnings release, it will be necessary to confirm not only whether revenue reached ¥10,500 million, but also standalone Q4 revenue and operating profit, the results of the 1 property sale and 2 handovers, and the factors behind any variance from the full-year forecasts. In particular, even if operating profit exceeds ¥1,470 million, if revenue falls short of forecast it will be necessary to determine whether the margin improvement reflects a change in the revenue mix toward held properties or a temporary gross-profit contribution from property sales.