FY2026 net profit is boosted by a one-time payment, while operating and ordinary profit forecasts are revised downward

For the nine months ended September 2026, revenue was ¥32,843 million, operating profit was ¥1,760 million, ordinary profit was ¥1,818 million, and net income attributable to owners of the parent was ¥1,072 million. Compared with the same period a year earlier, revenue increased 10.7%, operating profit 116.7%, ordinary profit 97.1%, and net profit 86.7%, indicating a substantial improvement in core earnings through the third quarter. At the time of the third-quarter results, the full-year forecasts were revenue of ¥43,000 million, operating profit of ¥1,800 million, ordinary profit of ¥1,750 million, and net profit of ¥1,100 million.

The full-year forecasts were subsequently revised on 11 September 2026. The revenue forecast was maintained at ¥43,000 million, while operating profit was lowered to ¥1,650 million and ordinary profit to approximately ¥1,600 million. In contrast, the company expects to receive an approximately US$30 million one-time payment in connection with the amendment of a major OEM contract and record an extraordinary gain of approximately ¥4.6 billion. As a result, the forecast for net income attributable to owners of the parent was raised to ¥3,800 million and the forecast for earnings per share to ¥969.43. This means that the increase in net profit depends substantially on one-off income and expenses associated with the contract amendment, rather than on an improvement in operating performance.

Nine-month operating profit of ¥1,760 million already exceeds the revised full-year forecast of ¥1,650 million by ¥110 million. On a simple subtraction basis, this implies an operating loss of approximately ¥110 million in the fourth quarter, making it necessary to check not only seasonality but also whether raw material costs, selling, general and administrative expenses, and foreign-exchange effects recur. The extraordinary gain is excluded from operating profit, so operating profit of ¥1,650 million and ordinary profit of approximately ¥1,600 million will be the key figures when assessing recurring earnings power excluding the OEM payment.

At the next full-year results announcement, it will be important to determine whether the company can separately disclose the payment received, the final amount recorded as an extraordinary gain, the amount contributing to net income after tax expense, and the continuing impact of the contract amendment on revenue and profit in subsequent fiscal years. Some aspects of the revision have reportedly remained under discussion with the audit firm, so it will also be necessary to confirm whether the final accounting treatment differs from the current forecasts.