The timing shift of semiconductor projects weighed on Q1, but orders and order backlog have recovered sharply.

Consolidated revenue in FY2027-Q1 was ¥8,244 million, down 6.3% year on year. The main factor was semiconductor-related equipment, where revenue fell 42.2% year on year to ¥2,188 million because some projects were pushed into Q2 or later at customers’ request. Segment profit was also limited to ¥151 million, down 85.1% year on year. Accordingly, it is important that the decline in revenue and profit included not only the loss of demand but also a shift in the timing of revenue recognition.

The order environment, by contrast, has clearly improved. Consolidated order intake in Q1 was ¥15,934 million, up 202.4% year on year, comprising ¥8,922 million for machine tools and ¥7,011 million for semiconductor-related equipment. Order intake for semiconductor-related equipment increased particularly sharply, rising 469.7% year on year. However, order intake is a leading indicator of future revenue and will not immediately be reflected in current-period revenue or operating profit unless delivery, installation and customer acceptance progress as well.

Consolidated order backlog was ¥34,874 million, up 120.7% year on year, comprising ¥14,106 million for machine tools and ¥20,768 million for semiconductor-related equipment. The semiconductor-related equipment backlog is approximately 9.5 times revenue of ¥2,188 million and could support revenue from the second half onward if projects are delivered as planned. However, the Q1 information provided does not disclose the amount of the backlog scheduled for delivery and customer acceptance in FY2027-H1 or the value of projects affected by the timing shift.

The key points to confirm in FY2027-H1 are not the increase in orders itself, but whether semiconductor-related equipment revenue returns to above the year-earlier level, whether segment profit recovers beyond ¥151 million, and whether the order backlog is being converted into recognized revenue. Disclosure of changes to delivery schedules, customer acceptance plans and recognized revenue will help determine whether the shift of projects into Q2 or later was a temporary timing factor or a substantive postponement involving changes to customers’ capital investment plans.