Revenue and profit increased, but the focus for H1 is whether the company is on track to meet its full-year plan

Revenue in Q1 of FY2027 was ¥26,335 million, operating profit was ¥2,928 million, ordinary profit was ¥3,242 million, and quarterly net profit attributable to owners of the parent was ¥2,122 million. Compared with revenue of ¥23,002 million, operating profit of ¥2,253 million and net profit of ¥1,654 million in the same quarter of the previous year, revenue increased 14.5%, operating profit 30.0% and net profit 28.2%, indicating clear revenue and profit growth in the quarter.

However, Q1 progress against the full-year forecasts of ¥140,000 million in revenue, ¥21,000 million in operating profit and ¥15,000 million in net profit was 18.8%, 13.9% and 14.1%, respectively. Compared with a simple 25% quarterly run rate that does not account for seasonality, this was 6.2 percentage points behind for revenue and 11.1 percentage points behind for operating profit. Operating profit is progressing more slowly than revenue, making it important to assess whether margins will improve further in H1 and whether projects weighted toward H2 will actually move into shipment.

Dividing the full-year forecast evenly between the two halves gives H1 reference figures of ¥70,000 million in revenue, ¥10,500 million in operating profit and ¥7,500 million in profit attributable to owners of the parent. After deducting Q1 results, standalone Q2 would need to generate revenue of ¥43,665 million, operating profit of ¥7,572 million and net profit of ¥5,378 million. These are not the company's formal H1 forecasts, but verification thresholds derived by mechanically dividing the full-year plan in half, so they should be assessed at the next results announcement alongside actual seasonality and the timing of project recognition.

As of Q1, there had been no change to the full-year earnings forecast announced on 14 May 2026. At the next results announcement, it will be important to review not only H1 cumulative results but also standalone Q2 revenue and operating profit, progress against the full-year forecast and the status of order backlog being recognized as revenue. In particular, if Q2 operating profit falls below ¥7,572 million, the profit required in H2 to maintain the full-year operating profit target of ¥21,000 million will increase substantially, requiring an explanation of the basis for maintaining the plan and the timing of project recognition.