H1 operating profit reached 51% of the full-year forecast, broadly on track; sustaining profit growth is the focus in Q3

FY2026-H1 revenue was ¥25.352 billion, up 6.3% year on year, while operating profit was ¥1.941 billion, up 31.3%. Ordinary profit was ¥1.938 billion, up 37.8%, and interim net profit attributable to owners of the parent was ¥1.203 billion, up 41.4%. Profit growth outpaced revenue growth, indicating that fixed-cost absorption from higher revenue and an improved business mix were supporting results as of H1.

The company's FY2026 full-year forecasts are revenue of ¥52.0 billion, operating profit of ¥3.8 billion, ordinary profit of ¥3.8 billion and net profit attributable to owners of the parent of ¥2.3 billion. H1 progress was approximately 48.8% for revenue, 51.1% for operating profit, 51.0% for ordinary profit and 52.3% for net profit. Operating profit and net profit were slightly ahead of the 50% elapsed-period benchmark, making it important to determine in FY2026-Q3 whether this lead is maintained or whether higher costs and seasonal demand become apparent in the second half.

FY2026-Q1 revenue was ¥12.594 billion and operating profit was ¥987 million. Accordingly, based on the difference from the H1 cumulative figures, standalone Q2 revenue was approximately ¥12.758 billion and operating profit was approximately ¥954 million, meaning operating profit did not deteriorate materially from Q1. At the next earnings announcement, standalone and cumulative Q3 figures will need to be disclosed to determine whether H1 profit growth is being reproduced quarter by quarter.

The full-year forecasts, meanwhile, were left unchanged as of the H1 results. Meeting the forecasts will require approximately ¥26.648 billion in revenue and ¥1.859 billion in operating profit in the second half. This appears achievable if the H1 margin is simply assumed to continue, but increases in raw-material, component and logistics costs, as well as fluctuations in automotive-related equipment projects, remain factors. In FY2026-Q3, in addition to whether the full-year forecasts are revised, the focus will be on the visibility of orders and revenue against the amounts required in the second half, the maintenance of the operating margin and changes in the demand environment.