FY2027 1Q got off to a strong start, but acceleration over the remaining 3 quarters is needed to achieve the full-year plan

Consolidated revenue for FY2027 1Q was ¥47.787 billion, operating profit was ¥4.222 billion, ordinary profit was ¥5.772 billion, and net income attributable to owners of the parent was ¥3.439 billion. Compared with year-earlier revenue of ¥42.489 billion, operating profit of ¥2.998 billion, and net income of ¥2.593 billion, revenue increased 12.5%, operating profit increased 40.8%, and net income increased 32.6%. Operating profit grew faster than revenue, indicating that improved profitability drove consolidated earnings.

The latest full-year plan calls for revenue of ¥200 billion, operating profit of ¥16 billion, net income attributable to owners of the parent of ¥12 billion, and EPS of ¥262.89. Progress based on 1Q results was 23.9% for revenue, 26.4% for operating profit, and 28.7% for net income. Progress is ahead of a simple even quarterly allocation, but machinery manufacturers are subject to seasonality arising from order and acceptance timing and product mix, so it is too early to judge whether the full-year plan will be exceeded based solely on 1Q progress.

Subtracting 1Q results from the full-year plan leaves ¥152.213 billion in revenue, ¥11.778 billion in operating profit, and ¥8.561 billion in net income to be accumulated over the remaining 3 quarters. The corresponding FY2026 remaining 3-quarter results, calculated by subtracting 1Q FY2026 results from full-year results, were revenue of ¥134.999 billion, operating profit of ¥10.470 billion, and net income of ¥7.235 billion. Achieving the current plan therefore requires revenue to increase approximately 12.8%, operating profit approximately 12.5%, and net income approximately 18.3% versus the year-earlier remaining 3 quarters. Accordingly, in FY2027-H1 it will be necessary to confirm whether the margin improvement seen in 1Q is continuing across multiple businesses, including automotive, semiconductors, and marine.

At the next results announcement, in addition to whether the full-year plan is maintained or revised, it will be important to determine whether the factors behind 1Q profit growth can be broken down into volume, pricing, foreign exchange, product mix, and raw material and energy costs. In particular, detailed quarterly segment profit cannot be confirmed from the financial summary alone as of 1Q. We will track the extent to which automotive and construction machinery, general industrial machinery, semiconductors, marine, and aerospace contributed to profit in FY2027-H1, as well as whether the outlook for the order backlog and acceptance timing toward the second half is disclosed.