FY2027-Q1 may be subdued due to the timing of deliveries for battery storage projects, making the recovery path toward the full-year ¥4,500 million target the key focus

FY2026 full-year revenue was ¥3,119 million and operating profit was ¥459 million, while the earnings presentation showed standalone fourth-quarter revenue of ¥1,167 million and operating profit of ¥149 million. On a simple calculation, the fourth quarter alone accounted for approximately 37.4% of full-year revenue and 32.5% of operating profit. The AI Business generated revenue of ¥575 million and operating profit of ¥150 million, while the Infrastructure Asset Business generated revenue of ¥592 million and operating profit of ¥130 million, confirming that revenue recognition from battery storage development made a substantial contribution to results toward the end of the year.

The FY2027 full-year plan calls for revenue of ¥4,500 million, operating profit of ¥600 million, ordinary profit of ¥610 million and net income of ¥400 million. Compared with FY2026 actual results, this represents increases of ¥1,381 million in revenue and ¥141 million in operating profit, equivalent to revenue growth of 44.3% and operating profit growth of 30.6%. Accordingly, even if Q1 is weak due to the timing of deliveries of large materials, the key issue will be whether project revenue recognition recovers from Q2 onward and absorbs the amount needed to meet the full-year plan. The company has indicated that Q1 revenue and operating profit may temporarily be at low levels, but has not quantified either the standalone Q1 revenue and profit outlook or the timing of revenue recognition for delayed projects.

At the next results announcement, it will be necessary to review standalone Q1 revenue and operating profit, not just cumulative figures, and gauge the extent of the weakness by comparing them with the ¥1,167 million and ¥149 million recorded in FY2026-Q4. In particular, the aim will be to distinguish between delays solely in the delivery of large materials for the Infrastructure Asset Business and increases in construction or procurement costs or changes in project start dates. Even if the full-year forecasts of ¥4,500 million and ¥600 million are maintained, it will be difficult to assess the plan's achievability unless the company provides additional disclosure on the number of projects that can offset the Q1 delay, scheduled delivery dates and expected revenue recognition from Q2 onward.