FY2026 results are well ahead of the full-year plan, with the focus now on whether the fourth quarter will fall short

For the nine months ended June 2026, revenue was ¥8,529 million, up 8.1% year on year; operating profit was ¥780 million, up 12.2%; ordinary profit was ¥790 million, up 12.1%; and net income was ¥514 million, up 25.2%. The full-year plan calls for revenue of ¥11,200 million, operating profit of ¥850 million, ordinary profit of ¥850 million and net income of ¥590 million, representing progress rates of 76.2%, 91.8%, 92.9% and 87.1%, respectively.

Subtracting the nine-month results from the full-year plan leaves required fourth-quarter revenue of ¥2,671 million, operating profit of ¥70 million, ordinary profit of ¥60 million and net income of ¥76 million. The required operating margin on the additional revenue is only about 2.6%, well below the approximately 9.1% operating margin for the nine-month period. Accordingly, the hurdle for meeting the plan is not high as long as ordinary earnings levels are maintained, but it will be necessary to check whether hiring and employee-benefit improvement costs, project acceptance timing and customers’ restrained development spending become concentrated in the fourth quarter.

Quarterly progress rates show revenue and operating profit at 25.1% and 39.3% in the first quarter, 50.1% and 67.3% at the interim period, and 76.2% and 91.8% in the third quarter, with operating profit consistently ahead of revenue. The company has not revised its full-year forecast, however, and the current operating profit plan of ¥850 million is below the ¥963 million reported for the fiscal year ended September 2025. At the next results announcement, the focus will be not only on whether the plan is met, but also on whether operating profit exceeds the conservative target set below the previous fiscal year’s actual result and whether the annual dividend of ¥102 for the fiscal year ending September 2026 is maintained.