Operating profit progress as of 3Q is significantly behind the full-year plan

Cumulative revenue for the first 3 quarters of FY2026 was ¥2,749 million, and operating profit was ¥30 million. The full-year forecast is ¥5,467 million for revenue and ¥381 million for operating profit, leaving progress at only 50.3% for revenue and 7.9% for operating profit on a simple calculation. After 9 months, revenue progress was still only around half of the full-year figure, while most of the planned operating profit remains to be generated in 4Q.

Subtracting cumulative 3Q actual results from the full-year forecast leaves required 4Q revenue of ¥2,718 million and operating profit of ¥351 million. In FY2025, the comparison year, full-year revenue was ¥5,782 million, operating profit was ¥612 million, cumulative 3Q revenue was ¥4,136 million, and operating profit was ¥464 million. 4Q actual results can therefore be calculated as ¥1,646 million in revenue and ¥148 million in operating profit. To meet the FY2026 plan, revenue must increase 65.1% and operating profit 137.2% from the previous year's 4Q.

The hurdle is also high in terms of profitability. The operating margin for cumulative FY2026 3Q was approximately 1.1%, down sharply from approximately 11.2% in cumulative FY2025 3Q. Meanwhile, the FY2026 full-year operating margin forecast is approximately 7.0%. Generating operating profit of ¥351 million in 4Q alone would require a 4Q operating margin of approximately 12.9%. This exceeds the approximately 9.0% operating margin in FY2025 4Q, so it will be necessary to confirm not only a recovery in revenue but also an improvement in profitability.

As of 3Q, the full-year forecast remains unchanged, but the information provided does not include quantitative bridges such as orders received, order backlog, regional revenue or product-level profitability to support the 4Q revenue plan. In the next results announcement, it will be necessary to assess the achievement of 4Q revenue of ¥2,718 million and operating profit of ¥351 million, whether the operating margin approached 12.9%, and whether the company will revise its forecast if the targets are missed.