Q1 upward revision led by the Equipment segment; assess the sustainability of semiconductor demand in FY2027-H1

Consolidated revenue in FY2027-Q1 was ¥49,108 million, up 35.5% year on year, while operating profit was ¥8,032 million, up 112.9%. Ordinary profit was ¥8,242 million, and profit attributable to owners of the parent was ¥5,686 million, representing increases of 122.5% and 129.5%, respectively. The operating margin, calculated simply, was approximately 16.4%, up substantially from approximately 10.4% in the year-earlier period.

The Equipment segment was the main driver of the increase in revenue and profit. Segment revenue was ¥46,072 million, up 45.4% year on year, and segment profit was ¥8,751 million, up 112.4%. By contrast, the Automated Machinery segment posted revenue of ¥3,036 million, down 33.5%, and segment profit of ¥738 million, down 26.3%. The company's profit growth was therefore not the result of an even recovery across the two segments. In the next results, whether the Equipment segment can exceed the year-earlier revenue of ¥63,754 million and segment profit of ¥8,219 million will be a direct benchmark for measuring first-half sustainability.

The company raised its FY2027 full-year forecasts to revenue of ¥193,000 million, operating profit of ¥28,500 million, ordinary profit of ¥28,500 million, and profit attributable to owners of the parent of ¥19,000 million. As of Q1, progress was 25.4% for revenue and 28.2% for operating profit, with operating profit progress ahead of revenue progress. Assuming a simple even distribution across the first half, operating profit of ¥14,250 million would be one benchmark. However, seasonality related to the timing of orders and acceptance of semiconductor-related projects has not been disclosed, so Q2 cumulative results and the order backlog need to be reviewed.

The Q1 disclosure attributed the increase in revenue to demand related to generative AI, semiconductor and secondary-battery investment in China and elsewhere, and preparations to strengthen production and supply capacity in the Equipment segment. However, no monetary bridge by factor or regional revenue was disclosed. The next focus is whether the Equipment segment's revenue growth is concentrated in generative AI and data-center applications or is spreading to China and other parts of Asia, as well as whether the high margin is attributable to pricing, product mix, or productivity.