FY2027-Q1 focus: confirming the initial signs of revenue and profit growth alongside a domestic recovery

FY2026 full-year revenue was ¥7,859 million and operating profit was ¥1,364 million, up 3.5% and 36.1%, respectively, year on year. In contrast, the FY2027 full-year plan calls for revenue of ¥8,600 million, operating profit of ¥1,500 million, ordinary profit of ¥1,600 million and net profit of ¥1,100 million, with revenue expected to rise 9.4% and operating profit 10.0%. At the next first-quarter results announcement, the key point will not simply be whether the company remains profitable, but whether the revenue growth rate is approaching the assumption underlying the company plan.

Cumulative FY2026 results progressed from first-quarter revenue of ¥1,424 million and operating profit of ¥181 million, to interim revenue of ¥3,407 million and operating profit of ¥491 million, and then cumulative third-quarter revenue of ¥5,204 million and operating profit of ¥723 million, before reaching full-year revenue of ¥7,859 million and operating profit of ¥1,364 million. Whether first-quarter revenue and operating profit can exceed the results for the same quarter of the previous year will be the minimum comparison benchmark for FY2027-Q1.

The domestic segment reported first-half FY2026 revenue of ¥2,734 million, down 5.6% year on year, and segment profit of ¥245 million, down 21.3%. By the cumulative third quarter, revenue had improved to ¥4,227 million, down 1.2%, while profit rose 14.2% to ¥356 million. For the full year, revenue recovered to ¥6,271 million, up 3.4%, and profit to ¥733 million, up 37.7%. With slower purchasing activity caused by higher prices, rising material costs, and continued revisions to construction and capital investment plans due to labor shortages, it will be necessary to determine whether this recovery is temporary.

Overseas full-year FY2026 revenue was ¥1,588 million, up 4.0%, and segment profit was ¥630 million, up 34.3%. In addition to maintaining full-year revenue and profit growth, we will look to confirm whether domestic revenue can also remain positive year on year and assess first-quarter progress toward the FY2027 full-year revenue plan of ¥8,600 million. The company has not disclosed FY2027 earnings forecasts or order backlogs by domestic and overseas operations, so segment results and the explanation of demand will be factors in assessing the next results announcement.