Can the increase in revenue and profit in FY2027-Q1 be carried through to the full-year plan through large projects in the second half?

In FY2027-Q1, revenue was ¥38,834 million, up 8.6% year on year, operating profit was ¥1,228 million, up 20.3%, ordinary profit was ¥1,373 million, up 18.9%, and net income attributable to owners of the parent was ¥708 million, up 31.9%. Orders received also rose 21.1% to ¥50,140 million, indicating that, at least at the beginning of the fiscal year, construction volumes and profitability were trending above the company’s plan.

However, the full-year forecasts are revenue of ¥175,000 million, operating profit of ¥13,000 million, ordinary profit of ¥13,250 million and net income attributable to owners of the parent of ¥9,000 million. Progress against the full-year forecasts in Q1 was 22.2% for revenue, compared with 9.4% for operating profit, 10.4% for ordinary profit and 7.9% for net income attributable to owners of the parent. The company has explained that large projects are concentrated in the second half. While the lower progress rates for profit than for revenue can be explained by seasonality and the timing of project recognition, an important focus in the H1 results will be whether actual project progress supports this assumption.

The group has consistently disclosed the seasonal pattern whereby construction revenue tends to be relatively low in Q1. In FY2026-H1, revenue was ¥89,340 million and operating profit was ¥7,893 million, making whether the company exceeds these comparators the first point to check in the next results. In addition, we will assess how much of the current ¥97,824 million order backlog has converted into H1 construction revenue, gross profit and operating profit, and determine whether it has become a revenue base supported by delivery schedules and profitability rather than merely an accumulation of orders.