FY2027-H1 forecast broadly in line with Q1 progress, making first-half earnings delivery the next focus

FY2027-Q1 revenue rose 32.9% year on year to ¥19,847 million, while operating profit increased 281.9% to ¥2,793 million. The full-year forecasts are revenue of ¥80,000 million, operating profit of ¥11,500 million, ordinary profit of ¥11,700 million and net income attributable to owners of the parent of ¥9,500 million. Progress as of Q1 was 24.8% for revenue and 24.3% for operating profit. Compared with the 25% elapsed share of the fiscal year, both revenue and operating profit are broadly tracking the plan.

The company’s FY2027-H1 forecasts are revenue of ¥39,800 million, operating profit of ¥5,600 million, ordinary profit of ¥5,600 million and net income of ¥4,200 million. Simply subtracting Q1 results means that Q2 alone will need to generate revenue of ¥19,953 million, operating profit of ¥2,807 million, ordinary profit of ¥2,436 million and net income of ¥1,760 million. The most concrete test of the first-half plan will be whether Q2 can reproduce revenue of ¥19,847 million and operating profit of ¥2,793 million, approximately the levels recorded in Q1.

FY2026-H1 revenue was ¥30,254 million and operating profit was ¥1,543 million, making the FY2027-H1 forecast equivalent to year-on-year growth of 31.5% in revenue and 262.8% in operating profit. The targets appear achievable if the Q1 recovery in demand and benefits from increased production continue into Q2, but the first-half forecasts also assume continued benefits from the weaker yen and sustained capital investment demand. At the next results announcement, it will therefore be necessary to confirm whether the first-half plan was supported by higher volumes, pricing, foreign exchange or capacity utilization.

The Q1 summary results indicate that the earnings forecasts were revised from the most recently disclosed figures, but the previous forecast amounts, size of the revisions and quantitative breakdown of the reasons for the revisions cannot be confirmed. The company also reports a single segment and does not provide full-year forecasts for revenue or profit by product or region. For FY2027-H1, it will be important to disclose not only whether the full-year forecasts are maintained or revised again, but also the contribution of demand from Japan, North America, China, Europe and other regions, as well as the factors that enabled the company to achieve the Q2 operating profit requirement of ¥2,807 million.