Progress toward the FY27 full-year plan delayed by steep Q1 declines in revenue and earnings

In Q1 of the fiscal year ending March 2027, revenue was ¥15.347 billion, operating profit was ¥457 million, ordinary profit was ¥801 million, and net profit attributable to owners of the parent was ¥484 million. Year on year, revenue fell 17.3%, operating profit 63.9%, ordinary profit 42.6%, and net profit 48.5%, with the decline in earnings substantially exceeding the decline in revenue. The operating margin was approximately 3.0%, down from approximately 6.8% in the same period of the previous year.

The full-year forecasts are revenue of ¥80.0 billion, operating profit of ¥5.7 billion, ordinary profit of ¥6.0 billion, and net profit of ¥4.3 billion. As of the end of Q1, progress against these forecasts was 19.2%, 8.0%, 13.4%, and 11.3%, respectively. To reach a simple 50% half-year pace for revenue, ¥40.0 billion would be required in FY27-H1. After deducting Q1 revenue, ¥24.653 billion would be required in Q2. On the same basis, the operating profit benchmark for the first half is ¥2.85 billion, requiring a substantial improvement from Q1 operating profit of ¥457 million.

The company cited lower sales of high-speed presses as a factor behind the revenue decline, and the impact of lower revenue and higher selling, general and administrative expenses as factors behind the decline in operating profit. Meanwhile, orders received totaled ¥20.512 billion, driven by an increase in large presses, particularly custom presses, suggesting a possible timing mismatch between orders and revenue recognition. At the next earnings release, the key points will be when the large custom presses ordered in Q1 are transferred to revenue, whether the decline in high-speed presses is a temporary timing issue, and whether the increase in SG&A expenses will continue.

The full-year earnings forecasts and annual dividend forecast were unchanged as of Q1, with the dividend forecast maintained at ¥39 per share. However, maintaining the plan while operating-profit progress is only 8.0% will require a substantial build-up in profit in the second half. Whether revenue approaches ¥40.0 billion and operating profit ¥2.85 billion in FY27-H1, or the company revises its full-year forecasts, will be the most important point at the next earnings release.