Will overseas-led growth in Industrial Equipment continue into FY2027-H1?

In FY2027-Q1, consolidated revenue was ¥28,334 million and operating profit was ¥5,879 million, up 16.9% and 20.1% year on year, respectively. Industrial Equipment led the results, with revenue of ¥21,790 million and segment profit of ¥6,245 million, up 20.3% and 21.5% year on year, respectively. The segment generated most of consolidated operating profit and is the most important segment for assessing FY2027-H1 performance.

Looking at the composition of growth, overseas industrial equipment revenue within Industrial Equipment was ¥13,395 million, up 36.4% year on year, while domestic industrial equipment revenue was ¥5,168 million, up only 2.0%. Tools for concrete structures, including the rebar tying machines and tie wire that the company has identified as growth drivers, expanded to ¥42,700 million for FY2026, up 23% year on year, and reached ¥13,400 million in Q1, up 32%. We will assess whether the overseas sales network and the cumulative installed base of consumables are complementing sales of the machines themselves.

Following Q1, the company raised its FY2027-H1 plan to revenue of ¥55,100 million, operating profit of ¥10,500 million, ordinary profit of ¥10,400 million and net profit of ¥8,000 million. The full-year plan was raised to revenue of ¥109,900 million, operating profit of ¥19,900 million, ordinary profit of ¥19,900 million and net profit of ¥15,050 million. Q1 consolidated revenue represented approximately 25.8% of the full-year plan and operating profit approximately 29.5%, compared with approximately 51.4% and 56.0%, respectively, of the first-half plan. Next time, we will reassess domestic and overseas revenue and segment profit for Industrial Equipment to determine whether the dependence on the second half required to achieve the first-half plan has become excessive.