A strong fourth-quarter contribution is needed to meet the full-year forecast

Cumulative nine-month FY2026 revenue was ¥19,508 million, up 11.9% year on year, operating profit was ¥1,779 million, up 27.2%, ordinary profit was ¥2,042 million, up 42.0%, and profit attributable to owners of the parent was ¥1,466 million, up 225.0%. Revenue of ¥14,094 million and operating profit of ¥1,473 million in the first half had also represented year-on-year growth in both revenue and profit, indicating that the improvement in performance continued from the first half through the third quarter.

However, the full-year forecasts are revenue of ¥27,800 million, operating profit of ¥2,900 million, ordinary profit of ¥3,050 million and net profit of ¥2,200 million. Cumulative nine-month progress was approximately 70.2%, 61.3%, 67.0% and 66.6%, respectively. Compared with the simple 75% time-based progress expected after nine months, revenue was approximately 4.8 percentage points behind and operating profit approximately 13.7 percentage points behind. Operating profit in particular requires the company to generate approximately ¥1,121 million in the fourth quarter, making it necessary to examine earnings seasonality and the project mix.

The earnings presentation materials set the fourth-quarter revenue forecast at approximately ¥8,291 million and the operating profit forecast at approximately ¥1,120 million, and indicated a plan for domestic development projects in the press-in construction business, which were limited in the third quarter, to be concentrated in the fourth quarter. Accordingly, at the next earnings announcement, it will be necessary to confirm not only whether the full-year forecast was achieved, but also whether projects in the press-in construction business actually commenced and progressed, were recognized in revenue and profit, and whether project profitability differed from the initial assumptions.

The third-quarter earnings summary did not include a quarterly consolidated cash flow statement, and cash flow from operating activities, investing activities and financing activities was not disclosed. In the full-year results, it will be necessary to confirm cash flow from operating activities and the cash balance, reflecting changes in trade receivables and inventories, capital expenditure and share buybacks, in addition to whether operating profit of ¥2,900 million was achieved, and to assess whether the earnings were converted into cash.