FY2027 on track as of Q1

Revenue in Q1 FY2027 was ¥12,945 million, up 15.1% year on year, while operating profit was ¥1,648 million, up 28.2%. Ordinary profit was ¥1,966 million, up 26.4%, and quarterly net profit attributable to owners of the parent was ¥1,434 million, up 41.5%, with all major profit measures increasing. Operating profit grew faster than revenue, indicating that at least in Q1, the effect of higher revenue flowed through to profit.

The full-year forecasts are ¥50,959 million in revenue, ¥6,428 million in operating profit, ¥6,986 million in ordinary profit and ¥5,149 million in net profit. Calculated simply from Q1 progress, revenue was at 25.4%, operating profit at 25.6%, ordinary profit at 28.1% and net profit at 27.9% of the respective forecasts. With progress in revenue and operating profit nearly identical, a mechanical assessment that does not factor in seasonality indicates that performance at the start of the first half is in line with the company’s plan.

According to the company, it is expanding sales by pursuing solution-based sales proposals in Japan and market expansion overseas, with growth in the medical equipment, semiconductor and LCD, water treatment and magnet pump markets. Costs, particularly personnel expenses, also increased, however. Further disclosure of the gross profit margin and SG&A expenses will be needed to determine whether the Q1 profit growth resulted from a lasting improvement in fixed-cost efficiency or a temporary absorption effect from higher revenue.

For the next results, FY2027-H1, the three priorities are cumulative first-half revenue and operating profit, progress toward the full-year forecasts, and the operating margin. Since the Q1 summary report did not include a cash flow statement or disclose operating cash flow, it will also be necessary to check whether increases in inventories or trade receivables are putting pressure on operating cash flow at the interim stage.