Will the delay in operating profit progress narrow in FY2027 H1?

FY2027 Q1 revenue was ¥15,260 million, representing 22.8% progress against the full-year forecast of ¥67,000 million. Operating profit was ¥620 million, representing only 14.4% progress against the ¥4,300 million full-year forecast, 8.4 percentage points below revenue. Year on year, revenue increased 5.8%, while operating profit declined 17.1%, indicating that higher revenue has not translated directly into profit.

Using 50% of the full-year forecast as a simple FY2027 H1 benchmark, revenue would be ¥33,500 million and operating profit ¥2,150 million. However, the company has not disclosed quarterly seasonality or its internal H1 plan, so these are mechanical benchmarks for measuring progress, not company forecasts. Next time, it will be necessary to assess how much of the ¥3,680 million required to reach the full-year operating profit target, as of the end of Q1, has been achieved by H1.

The delay in profit progress has been attributed to a decline following the completion of projects in the CFCC business and a time lag before selling-price revisions took effect. However, the company has not disclosed Q1 orders received, order backlog, the monetary impact of price revisions, or an operating profit bridge by factor. At the next results announcement, the key points will be whether the operating margin can recover while revenue growth is maintained, and whether the full-year forecast will be retained.