Delayed home-door deliveries make low progress and a second-half concentration the key focus for FY2027-H1

FY2027-Q1 revenue was ¥1,587 million, down ¥720 million, or 31.2%, from ¥2,307 million in the same period last year. The operating loss widened by ¥256 million to ¥494 million from ¥238 million a year earlier, while the ordinary loss was ¥496 million and the net loss attributable to owners of the parent was ¥360 million. Revenue and operating earnings deteriorated simultaneously, indicating that the shift in delivery timing directly affected earnings rather than representing merely a temporary fluctuation in margins.

The company explained that home-door deliveries, which had already begun in Q1 of the previous year, are concentrated from Q3 onward in the current fiscal year. In the past, the timing of home-door and ticketing and fare-collection projects has also caused significant quarterly fluctuations in transportation system equipment results. In FY2026-H1, some transportation system equipment and home-door deliveries were brought forward, while the company said home-door system revenue was strong for the full year. It is therefore necessary to determine whether the current revenue decline reflects a timing issue rather than the loss of demand.

Seasonality also cannot be ignored. According to the disclosures, first-half revenue was ¥7,228 million, or 47.0% of full-year revenue, in FY2025, compared with ¥5,710 million, or 44.3%, in FY2026, raising the second-half share to 55.7%. If the plan is even more concentrated in Q4 than in FY2026, FY2027-H1 revenue falling below the prior-year period would not immediately indicate a full-year shortfall. However, the execution risk for deliveries in Q3 and Q4 would correspondingly increase.

At the next earnings release, disclosure of revenue by transportation system equipment, delivered and undelivered home-door projects, acceptance conditions and order backlog will be important. The latest earnings summary does not provide order intake, order backlog or revenue amounts by division. We therefore need to confirm whether the backlog is sufficient to characterize the weak first-half progress as a delay, and whether deliveries have slipped further into the second half of FY2027 or the following fiscal year.