Profit improves despite flat sales; second-half repeatability is key to meeting the full-year forecast

Revenue in FY2026-H1 was ¥43,846 million, down 1.2% from ¥44,372 million in the same period of the previous year. Even so, operating profit improved by ¥2,077 million, from ¥92 million to ¥2,169 million, and the operating margin rose 4.7 percentage points, from 0.2% to 4.9%. This half-year period was characterised by profit gains from reviewing the product and customer mix and fixed costs, rather than from a recovery in sales volume.

The full-year company forecasts are revenue of ¥90,000 million, operating profit of ¥4,500 million, ordinary profit of ¥2,000 million and net profit attributable to owners of the parent of ¥1,500 million. These forecasts had not been revised as of FY2026-H1. Revenue progress was 48.7% and operating profit progress was 48.2%, indicating that the two were broadly in line for the half-year. Applying a simple 75% benchmark to cumulative nine-month results gives revenue of ¥67,500 million and operating profit of ¥3,375 million as reference points. However, seasonality and the timing of project shipments have not been disclosed, so achievement cannot be assessed based solely on the progress rate.

In FY2026-H1, ordinary profit was also positive at ¥802 million, as was interim net profit attributable to owners of the parent at ¥494 million, but the ¥1,367 million gap from operating profit of ¥2,169 million remains. Non-operating expenses, extraordinary gains and losses, foreign exchange and other downstream items continue to affect net profit. In FY2026-Q3, we will check whether an operating margin of at least 4.0% is maintained, the factors reducing operating profit to ordinary profit, the second-half assumptions if the full-year forecast is maintained, and whether profit contributions by initiative are disclosed.