FY2027 plan unchanged despite Q1 revenue and profit declines; recovery needed in H1

In the first quarter of the fiscal year ending March 2027, revenue was ¥3,399 million, operating profit was ¥291 million, ordinary profit was ¥295 million and quarterly net income was ¥198 million. Year on year, revenue declined 1.1%, operating profit 5.8%, ordinary profit 6.6% and quarterly net income 9.0%, indicating weakness in both the top line and profit. The company cited lower sales of high-pressure washer trucks and parts, as well as higher selling, general and administrative expenses, mainly due to increased personnel costs, as the primary factors.

The full-year forecasts remained unchanged at ¥13,000 million in revenue, ¥940 million in operating profit, ¥950 million in ordinary profit and ¥655 million in net income. FY2026 actual results were revenue of ¥14,097 million and operating profit of ¥1,341 million, meaning the FY2027 plan assumes year-on-year declines of 7.8% in revenue and 29.9% in operating profit from the start of the fiscal year. Q1 results represented 26.2% of the full-year revenue forecast and 31.0% of the operating profit forecast. Profit progress was ahead of revenue, although both deteriorated year on year.

To reach 50% of the full-year forecast in H1, the company would need revenue of ¥6,500 million and operating profit of ¥470 million. Based on Q1 results, Q2 alone would need to generate revenue of ¥3,101 million and operating profit of ¥179 million to reach these benchmarks. Compared with the prior-year interim revenue of ¥7,206.6 million and operating profit of ¥734 million, the key issue is how far the company can limit the decline in H1.

The assumptions underlying the unchanged full-year forecast include a recovery in the second half from delivery delays associated with the chassis model change, and no further pressure on profit from surging material costs or uncertainty over procurement. The next earnings release is scheduled for 9 November 2026. In addition to H1 results, it will be necessary to confirm whether chassis deliveries delayed in Q2 have been carried over into second-half revenue and whether the full-year forecast needs to be revised.