Will the sharp increase in order backlog convert into FY2027-H1 sales?

Orders received in Q1 of FY2027 ended March 2027 were ¥3,854 million, up 12.1% year on year. In addition, order backlog at the end of Q1 was ¥7,497 million, up 31.5% from the end of March 2026. On the order front, this is a period in which it is possible to determine whether the upward trend has continued from the fiscal year ended March 2026, when full-year orders received were ¥10,984 million, up 14.5% year on year.

However, the accumulation of orders has not yet appeared as an increase in sales. Q1 sales were ¥2,060 million, down 0.4% year on year. Progress against the ¥10,000 million full-year sales forecast was 20.6%, 4.4 percentage points below the 25% implied by simply dividing the three months from April to June by 12 months. This is only a mechanical comparison that does not account for seasonality or acceptance timing, but it provides a benchmark for measuring how much backlog is converted into sales in H1.

Regarding the composition of orders and sales, the company explained that valves and actuators, other speed reducers and increasers, and the Construction business increased, while jacks and gears declined. In the fiscal year ended March 2026, orders received were ¥8,296,298 thousand for the Gear and Gear Units business, up 15.4% year on year, and ¥2,687,763 thousand for the Construction business, up 11.7%. In H1, it will be important to determine whether the increase in orders is concentrated in particular products and whether delivery or acceptance timing has shifted from the initial assumptions.

The total order backlog disclosed at Q1 was ¥7,497 million, but amounts by business, product, and delivery date cannot be confirmed. Accordingly, at the H1 results announcement we will check whether, in addition to the total backlog at the end of September, the company provides a breakdown for the Gear and Gear Units business and the Construction business, its outlook for sales recognition from backlog in H2, and the year-on-year change in orders received. As simple benchmarks, H1 sales of ¥5,000 million and H1 orders received of ¥3,854 million are reference points.