Can revenue lost to delivery-date changes recover in FY2027-H1 while the high Q1 profitability is maintained?

Revenue in FY2027-Q1 was approximately ¥1,076 million, down approximately ¥228 million from approximately ¥1,304 million in the year-earlier period. Operating profit, however, increased from approximately ¥44 million to approximately ¥183 million, and the operating margin rose from approximately 3.4% to approximately 17.0%. Because sales volume and project timing are moving in the opposite direction from profitability, the key issue for the next results announcement will be whether the Q1 profit improvement can be regarded as representative of full-year earnings power.

The company stated that the main reason for the revenue decline was that delivery dates for several compressor unit projects had been moved to Q2 or later. It also explained that steady performance in the after-sales service business, cost-reduction initiatives and lower R&D expenses, following the completion of a major phase of development activity related to P2G systems in the previous fiscal year, boosted profit. However, the company has not disclosed the monetary contribution of the delivery-date changes, after-sales services, cost reductions or lower R&D expenses. In H1, it will therefore be necessary to determine separately whether the postponed projects were actually recognized as revenue and whether the profit improvement depends on one-off expense reductions.

FY2026 full-year results were approximately ¥7,799 million in revenue and approximately ¥925 million in operating profit, for an operating margin of approximately 11.9%. The FY2027 full-year forecast calls for revenue of ¥7,100 million and operating profit of ¥970 million. Revenue is expected to decline by approximately 9.0%, while operating profit is expected to increase by approximately 4.8%, producing a forecast operating margin of approximately 13.7%. The H1 levels of ¥3,550 million in revenue and ¥485 million in operating profit are merely mechanical benchmarks based on dividing the full-year forecasts evenly between the two halves. They are not the company's H1 plan, but they are useful benchmarks for assessing both project timing and the improvement in profitability.

FY2026-H1 results were approximately ¥2,616 million in revenue and approximately ¥144 million in operating profit, for an operating margin of approximately 5.5%. Although FY2027-Q1 operating profit alone was approximately ¥183 million, a straightforward comparison is not possible because the periods differ. It will be necessary to determine how much postponed project revenue accumulates in the H1 total. The company reports a single compressor business segment and does not disclose revenue or profit for compressor units and after-sales services separately. The quantitative disclosure of these business details and order backlog at the next results announcement will therefore be key to assessing whether the high profitability can be replicated.