Strong first-quarter performance prompts an upward revision to the first-half plan; focus shifts to sustaining high profit levels for the full year

FY2027-Q1 revenue was ¥16,788 million, up 19.2% year on year, while operating profit was ¥1,161 million, up 89.5%, and ordinary profit was ¥1,381 million, up 80.6%. Net income attributable to owners of the parent rose sharply to ¥1,671 million, up 245.3%, indicating that earnings had clearly improved from the previous year at least in the first quarter.

The first-half forecasts are revenue of ¥35,000 million, operating profit of ¥3,000 million, ordinary profit of ¥3,300 million and net income of ¥2,900 million. Q1 progress was 48.0% for revenue, 38.7% for operating profit, 41.8% for ordinary profit and 57.6% for net income. Revenue had reached almost half of the first-half plan, while the second quarter needs to generate an additional ¥1,839 million of operating profit, ¥1,919 million of ordinary profit and ¥1,229 million of net income.

The full-year forecasts are revenue of ¥74,500 million, operating profit of ¥8,000 million, ordinary profit of ¥8,700 million and net income of ¥5,900 million. Revenue and operating profit are expected to increase 3.1% each from FY2026 results of ¥72,244 million and ¥7,757 million, respectively. At the end of Q1, progress was only 22.5% for full-year revenue and 14.5% for operating profit, so even if the first-half plan is achieved, operating profit will need to build in the second half. In the second quarter, it will be important to assess whether growth in the US and Asia is non-recurring and whether domestic margins recover.

The first-half earnings outlook was raised when the first-quarter results were announced, while the full-year forecast was left unchanged. The company has not disclosed sufficient quantitative detail on why the first-half upgrade was not carried through to the full year, the demand, supply and foreign-exchange assumptions for the second half, or the order backlog and shipment outlook needed to achieve the plan. At the next results announcement, particular attention should be paid not only to first-half results but also to whether the full-year forecast is maintained or revised again.