Q1 was broadly on track against the full-year plan, but actual progress figures need to be disclosed for H1

For Q1 of the fiscal year ending March 2027, revenue was ¥15,778 million, operating profit was ¥3,044 million, ordinary profit was ¥3,024 million, and net income attributable to owners of the parent was ¥1,924 million. Year on year, revenue increased 17.5%, operating profit 21.5%, ordinary profit 20.3%, and net income 19.6%, with operating profit growth 3.9 percentage points higher than revenue growth. The operating margin was 19.3%, up approximately 0.7 percentage points from approximately 18.6% in the same period of the previous year.

The full-year forecasts are revenue of ¥65,000 million, operating profit of ¥13,000 million, ordinary profit of ¥13,000 million, and net income of ¥8,200 million. The company described Q1 as "steady progress against the full-year earnings forecast, as usual." On a simple comparison with the full-year forecasts, progress was 24.3% for revenue, 23.4% for operating profit, and 23.5% for net income, close to the 25% of the year elapsed. However, this compares Q1 results alone with the full-year forecasts and does not indicate seasonality in H1 or the timing of project recognition in H2.

Accordingly, for H1 it is necessary to use revenue of ¥32,500 million, operating profit of ¥6,500 million, and net income of ¥4,100 million as simple 50% benchmarks, and to check the difference from the actual cumulative results. In particular, renewal revenue was strong in Q1, increasing 30.4% year on year, so it will be important to determine whether the same projects continue to contribute in H1 or whether revenue and profit are weighted toward H2. Although the supplementary materials describe progress as "steady," they do not disclose the progress rates against the full-year forecasts or the amounts required for the remainder of the year.