First-half revenue and profit return to growth, but achieving the full-year operating profit target is concentrated in the second half

Revenue for January to June 2026 was ¥5,211 million, up 10.1% year on year, while operating profit was ¥352 million, up 11.3%. Ordinary profit was ¥376 million, and interim net profit attributable to owners of the parent was ¥252 million, up 9.9% and 78.7%, respectively, from the same period a year earlier. The key change in these results was the return to growth in both revenue and profit on a first-half basis, after revenue growth accompanied by profit declines through the previous year.

However, progress toward the full-year forecast is uneven. Revenue progress was 47.4%, close to half as would generally be expected for the first half, while operating profit progress was only 21.3%. Simple arithmetic shows that achieving the full-year operating profit forecast of ¥1,650 million will require approximately ¥1,298 million in the second half, and the earnings presentation also indicates that the expected second-half operating profit represents 78.7% of the full-year forecast. The company explains that demand for services such as administrative outsourcing will enter its peak season in the second half, but achieving the profit target will depend not only on revenue seasonality but also on the effectiveness of reducing outsourcing costs and bringing work in-house.

Within the comparable range, FY2025-H1 operating profit was approximately ¥316 million and FY2025 full-year operating profit was approximately ¥883 million, implying approximately ¥567 million in operating profit in the second half of the previous fiscal year. By contrast, the approximately ¥1,298 million required in the current fiscal year's second half is approximately 2.3 times the previous year's second-half figure. Accordingly, rather than extrapolating the first-half 11.3% profit growth directly into substantial full-year growth, it is necessary to confirm which businesses and expense items are expected to generate the sharp expansion in second-half profit.

At the next results release, FY2026-Q3, we will review operating profit for the quarter and cumulatively, the remaining amount required against the second-half plan, and whether the full-year forecast has been revised. In particular, the reliability of the full-year forecast will depend on whether the stated expansion in operating profit from Q3 onward appears in the actual results and is accompanied by an improvement in the operating margin, rather than revenue growth alone.