Q1 revenue rose, but operating loss was recorded; the key confirmation point is whether project profitability turns around

FY2027-Q1 consolidated revenue was ¥13,988 million, up 10.4% from ¥12,675 million in the year-earlier period. However, operating results were a ¥377 million loss, a deterioration of ¥1,337 million from the ¥1,060 million profit recorded in the year-earlier period. Ordinary results were also a ¥180 million loss, while quarterly net income attributable to owners of the parent was a ¥109 million loss, indicating that revenue growth is not translating into profit.

By segment, Logistics Solutions posted revenue of ¥8,313 million, up 13.9% year on year, but recorded an operating loss of ¥254 million. Plant revenue was ¥2,862 million, down 2.0%, while operating profit fell 85.8% to ¥34 million, a substantial decline in earnings. In contrast, Mirai Creation posted revenue of ¥2,709 million, up 15.0%, and operating profit of ¥186 million, up 66.2%, partly offsetting the deterioration company-wide.

In FY2026-Q1, consolidated operating profit had reached ¥1,060 million, supported in part by the recognition of high-margin Logistics Solutions projects. In FY2026-H1, consolidated operating profit was ¥2,307 million, including ¥426 million from Plant and ¥2,256 million from Logistics Solutions. If the current loss is merely due to a shift in the timing of revenue recognition, some recovery can be expected in FY2027-H1.

However, the deterioration factors disclosed so far are primarily qualitative explanations, including lower margins, the reversal of high-margin projects recorded in the year-earlier period, and a higher proportion of revenue from low-margin projects. No monetary bridge by factor has been provided. In the next results release, we will need to distinguish the profitability of Logistics and Plant projects, the front-loaded recognition of construction costs, and the effects of completion and handover timing, using whether H1 operating profit can exceed the year-earlier ¥2,307 million as the benchmark for recovery.