Q1 is tracking to the full-year plan, with H1 set to test the sustainability of earnings growth

Revenue in Q1 of the fiscal year ending March 2027 was ¥16.395 billion, up 6.4% year on year, while operating profit was ¥782 million, up 21.6%. Ordinary profit was ¥770 million, up 25.5%, and net profit attributable to owners of the parent was ¥469 million, up 17.4%. On a consolidated basis, revenue, operating profit, ordinary profit and net profit all increased. Progress against the full-year forecasts of ¥65.2 billion in revenue and ¥3.0 billion in operating profit was approximately 25.1% and 26.1%, respectively, in line with the plan after three months.

However, the composition of earnings growth differs by segment. The construction equipment-related business reported revenue of ¥7.047 billion and segment profit of ¥841 million, with profit up 75.6% year on year. The rental-related business also posted higher revenue and profit, with revenue of ¥4.372 billion and profit of ¥268 million. By contrast, the housing equipment-related business reported revenue of ¥3.673 billion and a loss of ¥156 million, while the electronics-related business reported revenue of ¥1.302 billion and a loss of ¥124 million. Accordingly, securing half of the H1 profit plan will depend not only on continued strength in the 2 core businesses, but also on containing losses in the 2 loss-making businesses.

The Q1 operating margin was approximately 4.8%, calculated as ¥782 million ÷ ¥16.395 billion, above the 3.5% margin for the fiscal year ended March 2026. However, Q1's standalone margin cannot simply be extrapolated to the full year. No earnings forecast revision was made with the Q1 results, and the full-year plan remains unchanged. In FY2027-H1, the mechanical 50% benchmarks of ¥32.6 billion in revenue and ¥1.5 billion in operating profit, without taking seasonality into account, will serve as one reference point. If actual results diverge from these levels, it will be necessary to assess the contribution of volumes, pricing and depreciation expenses in the construction equipment and rental businesses, as well as losses in the housing and electronics businesses. The company did not prepare a cash flow statement for Q1, and operating and investing cash flow were therefore undisclosed. H1 should also provide a basis for assessing the conversion of profit into cash and the scale of investment in rental assets.