Can first-quarter earnings momentum translate into revenue growth in the first half?

Revenue from April to June 2026 was ¥3,721 million, down 1.9% year on year. Progress against the full-year revenue forecast of ¥17,200 million was 21.6%, 3.4 percentage points below the 25.0% of the fiscal year elapsed. On the revenue side, shipments of main engines declined despite an increase in orders, suggesting a possible delay in converting orders into recognized revenue. This needs to be examined in the first half.

Operating profit, meanwhile, was ¥230 million, up 120.8% year on year, representing 25.6% progress against the full-year forecast of ¥900 million. This was 4.0 percentage points ahead of revenue progress, as price pass-through of higher material costs and controls on various expenses had a greater positive impact on profit than the decline in revenue. Ordinary profit was ¥241 million and net income was ¥161 million, with the company remaining profitable even after non-operating and extraordinary gains and losses.

The company has not disclosed an official first-half forecast for revenue or operating profit for FY2027-H1. The figures of ¥8,600 million in revenue and ¥450 million in operating profit are therefore only monitoring benchmarks calculated by simply halving the full-year forecasts. After deducting Q1 results, Q2 alone would need to generate revenue of ¥4,879 million and operating profit of ¥220 million. Actual progress may vary depending on seasonality and shipment timing, but in the first-half results we want to assess the gap against these levels and the basis for maintaining the full-year forecasts of ¥17,200 million and ¥900 million.