Full-year forecast raised again on strong orders; Q3 focus is progress toward profit targets

Revenue for the 6 months from January through June 2026 was ¥276,729 million, up 21.6% year on year; operating profit was ¥9,311 million, up 43.0%; and interim profit attributable to owners of the parent was ¥4,378 million, up 112.5%. The operating margin also rose 0.5 percentage points from 2.9% in the year-earlier period to 3.4%, making the key change in the first half not merely a recovery in revenue scale, but profit growth outpacing revenue growth.

First-half progress was 47.7% against the full-year revenue forecast of ¥580,000 million, 31.0% against the operating profit forecast of ¥30,000 million, and 28.2% against the profit attributable to owners of the parent forecast of ¥15,500 million. Compared simply with the 50% of the fiscal year that had elapsed, revenue was broadly on plan, while profit was heavily weighted toward the second half. To achieve the full-year forecasts, the company will need revenue of ¥303,271 million, operating profit of ¥20,689 million and profit attributable to owners of the parent of ¥11,122 million in the second half. Since the information provided does not include sufficient quantitative disclosure on seasonality or the concentration of project deliveries, FY2026-Q3 should establish whether these required second-half amounts are reasonable based on the order backlog and production plan.

The full-year revenue forecast was raised from ¥535.0 billion at the start of the fiscal year to ¥565.0 billion, and then to ¥580.0 billion in the first-half results. The operating profit forecast was raised from ¥22.5 billion to ¥28.0 billion and then to ¥30.0 billion. The forecast for profit attributable to owners of the parent was also revised from ¥10.5 billion to ¥15.0 billion and then to ¥15.5 billion. The company cited strong global orders, a trend toward yen depreciation against the euro and a revision to its assumed exchange rate as reasons for the revisions, but it has not disclosed a monetary bridge showing how the ¥2.0 billion increase in the operating profit forecast is allocated among cost of sales, labor costs, logistics costs and foreign exchange differences. In Q3, it will be important to determine whether the increase in orders is attributable to volume, pricing or foreign exchange, and whether the costs of increased production and new sites are putting pressure on margins.