For FY2027, the focus is on the landing after the regulatory-change windfall rather than sustaining high growth

FY2026 revenue was ¥24,704 million, operating profit was ¥4,943 million, ordinary profit was ¥4,973 million and net profit attributable to owners of the parent was ¥3,146 million. Revenue increased 25.0% year on year and operating profit increased 141.7%. By contrast, the company forecasts FY2027 revenue of ¥27,000 million, operating profit of ¥5,330 million, ordinary profit of ¥5,330 million and net profit of ¥3,280 million, representing revenue growth of 9.3% and operating profit growth of 7.8%.

There is also a change in margins that warrants attention. The FY2026 operating margin was 20.0%, whereas the FY2027 forecast implies a margin of approximately 19.7%, calculated by dividing operating profit of ¥5,330 million by revenue of ¥27,000 million. This represents an expected decline of approximately 0.3 percentage points. The next results will be important in determining whether the company is prioritising revenue scale-up or whether margin growth is being capped by higher personnel expenses and costs related to newly consolidated subsidiaries.

FY2025, the comparison year, recorded revenue of ¥19,765 million and operating profit of ¥2,045 million. Accordingly, FY2026 revenue increased by ¥4,939 million and operating profit by ¥2,898 million. Revenue and operating profit in the first half of FY2026 were also ¥11,368 million and ¥2,082 million, respectively, up 26.7% and 268.6% year on year. FY2027-Q1 will therefore need to show how much of a reaction to this sharp expansion emerges.

The company has disclosed only a full-year forecast for FY2027, with no standalone FY2027-Q1 revenue or operating profit forecast and no quarterly allocation of profit. Accordingly, at the next results announcement, we will look not only at year-on-year revenue and profit growth, but also at the breakdown of the building confirmation and housing performance evaluation-related business and the infrastructure stock and environment-related business, the operating margin, and whether the full-year forecast has been maintained.