Q1 consumed one-quarter of the full-year recovery plan, but H1 will be the test of whether the recovery is repeatable

FY2027-Q1 consolidated revenue was ¥6,007 million, up 12.9% year on year, while operating profit was ¥522 million, up 230.1%. Ordinary profit was ¥537 million and profit attributable to owners of the parent was ¥382 million, up 351.4% and 427.5%, respectively. Operating profit had reached 40.2% of the full-year forecast of ¥1,300 million, while revenue had reached 24.0% of the ¥25,000 million forecast, indicating that profit progress was significantly ahead of revenue progress.

The company's FY2027 full-year forecasts are revenue of ¥25,000 million, operating profit of ¥1,300 million, ordinary profit of ¥1,300 million and profit attributable to owners of the parent of ¥900 million. These forecasts imply year-on-year growth of 8.2% in revenue and 57.3% in operating profit. FY2026 full-year revenue and operating profit were ¥23,101 million and ¥826 million, respectively, so the current forecasts assume a recovery from lower revenue and profit. Recording ¥522 million in operating profit in Q1 is a positive factor for the plan, but differences in delivery and customer acceptance timing between quarters mean full-year performance cannot be judged by simply annualizing the quarter fourfold.

In FY2026-H1, revenue was only ¥10,629 million and operating profit ¥147 million. FY2027-Q1 operating profit of ¥522 million therefore also reflects a rebound from the previous year's low profit level. The company has qualitatively attributed the Q1 profit increase to higher sales, mainly of custom-built machines, higher revenue and an improved gross profit margin, but has not disclosed the contribution from each factor or the breakdown of sales volume and unit prices. The company also did not prepare a cash flow statement for Q1, so support for profit from operating cash flow cannot be verified.

In FY2027-H1, the simple half-year benchmarks based on the full-year forecasts, revenue of ¥12,500 million and operating profit of ¥650 million, should be used as reference points when assessing actual performance. It will also be important to see whether the company can disclose the sales mix of custom-built machines, the gross profit margin, absolute research and development and personnel costs, and the conversion of order backlog into revenue. Even if the full-year forecasts are maintained, it will be necessary to confirm whether the Q1 margin improvement continues into H1 and whether the European loss does not widen.