FY2027 1Q: Sharp growth driven by high-margin projects, with repeatability key to meeting the full-year target

First-quarter revenue for the fiscal year ending March 2027 was ¥5,827 million, up 9.0% year on year. Operating profit was ¥730 million, up 200.4%, ordinary profit was ¥879 million, up 141.4%, and net profit attributable to owners of the parent was ¥627 million, up 146.2%. The operating margin was approximately 12.5%, calculated by dividing operating profit of ¥730 million by revenue of ¥5,827 million, up approximately 8.0 percentage points from approximately 4.5% in the same period of the previous year.

The full-year forecasts remain unchanged at revenue of ¥27,300 million, operating profit of ¥3,100 million, ordinary profit of ¥3,300 million and net profit of ¥2,550 million. First-quarter progress was 21.3% for revenue and 23.5% for operating profit, slightly below a simple one-quarter benchmark. However, the company has a high proportion of public-sector projects, and revenue is seasonal because it is concentrated at the end of the fiscal year. It is therefore too early to judge that the full-year targets will be missed based solely on first-quarter progress.

In addition to higher revenue from the order backlog carried over from the previous year, the concentration of revenue from large projects subject to enhanced cost controls was cited as the main reason for the sharp increase in profit. However, the company has not disclosed the revenue contribution by project, savings from cost controls or the profitability of large projects. It is therefore not possible at this point to determine whether operating profit of ¥730 million reflects a temporary project mix resulting from the use of the order backlog or the ongoing effects of manufacturing and procurement improvements.

Cumulative revenue in the first half of the fiscal year ended March 2026 was ¥11,052 million, and operating profit was ¥558 million. In FY2027-H1, it will be necessary to confirm not only whether revenue exceeds the previous year's level, but also whether the operating margin can remain near the first-quarter level of 12.5% and whether profit can build in the second quarter toward the full-year forecast of ¥3,100 million.