FY2026 full-year guidance maintained, with recovery in profit progress the focus for Q3

FY2026 H1 revenue was ¥3,841 million, operating profit was ¥304 million, ordinary profit was ¥309 million, and net profit attributable to owners of the parent was ¥148 million. Full-year forecasts are ¥8,000 million, ¥694 million, ¥706 million and ¥453 million, respectively, resulting in progress rates of 48.0% for revenue, 43.8% for operating profit, 43.8% for ordinary profit and 32.7% for net profit. Revenue was close to 50% halfway through the fiscal year, while profit was less advanced than revenue.

If quarterly progress is simply assumed to be 75%, cumulative FY2026 Q3 figures of ¥6,000 million for revenue, ¥520.5 million for operating profit, ¥529.5 million for ordinary profit and ¥339.8 million for net profit would serve as reference levels. However, the company has explained that its business is seasonal, with revenue and profit concentrated in the first and fourth quarters because public-sector projects are concentrated toward the end of the fiscal year. Accordingly, 75% should not be treated as a mechanical forecast. In Q3, it will be necessary to assess the company’s explanation of project progress in light of seasonality, together with the likelihood of achieving its full-year forecasts.

In FY2026 H1, operating profit increased 27.0% year on year and ordinary profit increased 26.6%, while net profit increased only 8.2%. Special losses of ¥58.271 million, including an impairment loss of ¥58.194 million, were recorded in the interim period. In Q3, attention will be paid to the extent to which operating profit growth translates into net profit and whether any additional special losses or impairment losses arise. The full-year earnings forecasts and annual dividend forecast of ¥12.00 remain unchanged at present.