Full-year plan after upward revision is front-loaded toward operating profit; reassess progress at 9 months

Revenue for the six months ended September 2026 was ¥554.176 billion, operating profit was ¥37.449 billion, and profit attributable to owners of the parent was ¥22.040 billion. The full-year forecasts are revenue of ¥1,120.0 billion, operating profit of ¥68.0 billion, and profit attributable to owners of the parent of ¥35.0 billion, putting first-half progress at 49.5%, 55.1%, and 63.0%, respectively. Revenue is broadly in line with an even half-year split, while operating profit and net profit are running ahead.

The full-year forecasts at the first-quarter stage were revenue of ¥1,090.0 billion and operating profit of ¥60.0 billion, but these were raised at the second-quarter stage to ¥1,120.0 billion and ¥68.0 billion, respectively. In the third-quarter results, it will be important to determine whether the assumptions behind this upward revision remain intact or are revised again. Using 75% of the full-year plan as a simple benchmark, 9-month cumulative revenue of ¥840.0 billion and operating profit of ¥51.0 billion would provide reference points for assessing progress. These are mechanical benchmarks that do not reflect seasonality, not quarterly targets provided by the company.

Subtracting first-half results from the full-year forecasts leaves ¥565.824 billion of revenue, ¥30.551 billion of operating profit, and ¥12.960 billion of net profit to be generated in the second half. The first-half operating margin was 6.76%, compared with a second-half operating margin of 5.40% implied by the full-year forecast. Meeting the plan therefore requires not only greater revenue scale, but also maintaining margins at roughly the low-5% level even if the product mix or project profitability deteriorates in the second half.

In the third quarter, the key question will be whether the first-half lead in operating profit resulted from improved core profitability or from segment mix and temporary income items. In particular, if 9-month cumulative operating profit falls below ¥51.0 billion against the full-year forecast of ¥68.0 billion, the required profit for the remaining 3 months and the basis for achieving it will need to be examined. Conversely, even if 9-month progress exceeds plan, the sustainability of the upward revision should be assessed cautiously unless the company explains why the second-half margin is expected to decline.