The focus for the first half is whether profit progress toward the full-year plan can improve

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥1,598 million, operating profit was ¥62 million, ordinary profit was ¥80 million, and net profit attributable to owners of the parent was ¥31 million. The full-year forecast is revenue of ¥6,315 million, operating profit of ¥346 million, ordinary profit of ¥356 million, and net profit of ¥105 million, with no change to the earnings forecast as of the first quarter. Revenue progress against the full-year forecast was 25.3%, while operating profit progress was only 17.9%, indicating lower profit progress relative to revenue.

Revenue increased 492.0% year on year, but this includes the impact of making キャストリコ, which had been an equity-method affiliate in the previous consolidated fiscal year, a consolidated subsidiary. Accordingly, this rate of revenue growth cannot be explained solely by volume growth or price increases in the existing businesses. From revenue of ¥3,683 million and operating profit of ¥272 million in the fiscal year ended March 2026, the plan calls for revenue of ¥6,315 million and operating profit of ¥346 million in the fiscal year ending March 2027. The key issue will be whether the larger revenue base following the expansion of the scope of consolidation can be translated into profit.

Although the company has not disclosed a separate first-half forecast, using 50% of the full-year forecast as a simple progress benchmark gives first-half revenue of ¥3,157.5 million and operating profit of ¥173 million. After deducting first-quarter results, the second quarter alone would need to generate an additional ¥1,559.5 million in revenue and ¥111 million in operating profit. This is a mechanical benchmark that does not take seasonality or project delivery timing into account and is not the company's own plan, but it provides a minimum benchmark for assessing the likelihood of meeting the plan at the first-half results announcement.

At the next results announcement, it will be important to check not only the actual cumulative first-half revenue and operating profit, but also whether the contribution from キャストリコ can be explained separately from the existing businesses. In particular, the key factors in assessing the first-half results will be whether the gap between revenue progress of 25.3% and operating profit progress of 17.9% narrows, how much the planned consolidation of 小林電気工業 affects the first-half figures, and whether the full-year forecast of ¥6,315 million in revenue and ¥346 million in operating profit is maintained.