Can the record order intake be converted into revenue and profit in FY2027?

FY2026 revenue was ¥269.130 billion, operating profit was ¥19.598 billion and order intake was ¥324.228 billion. Order intake rose 43.7% year on year and revenue increased 7.1%, while operating profit fell 26.1%, indicating that expanding orders were not being converted into revenue and profit at the same pace. The gap between order intake and revenue reached approximately ¥55.1 billion. In FY2027-Q1, it will be necessary to determine whether this gap remains as order backlog or is tied up by delivery delays and production constraints.

In FY2026-H1 as well, order intake rose 17.8% year on year to ¥137.105 billion, while revenue fell 8.1% to ¥123.893 billion and operating profit fell 44.9% to ¥8.456 billion. The combination of higher orders but lower revenue and profit was already evident at the half-year stage, indicating a time lag before the record full-year order intake translates into actual revenue growth. At the end of FY2026, order backlog was ¥156.594 billion in the Vacuum Equipment business and ¥19.468 billion in the Vacuum Applications business, for a combined ¥176.062 billion. The next results should track how much of this backlog was recognized as revenue in FY2027-Q1, by segment.

The company itself identifies its inability to fully convert orders won into revenue and profit, due to the emergence of component supply risks and production capacity constraints, as a challenge in FY2026. It is therefore insufficient to look only at whether order intake exceeded the prior-year period. Shipment volumes, manufacturing lead times, procurement conditions for key components and the impact of capacity expansion at production sites also need to be assessed. FY2027, the fiscal year ending June 2027, has been designated as a year of “全面 inspection and transformation,” with business and production reform as top priorities. It will therefore be important to determine whether the reforms have begun to affect the pace of backlog conversion.

The FY2027 full-year forecast is revenue of ¥255.0 billion, operating profit of ¥28.0 billion and net income attributable to owners of the parent of ¥19.0 billion. Assuming revenue is evenly distributed across quarters, the first-quarter benchmark would be approximately ¥63.75 billion, but delivery timing is uneven in the equipment industry, so performance should not be assessed solely on achieving 25%. In the next results, progress against the full-year forecast should be reviewed together with changes in order backlog from the beginning of the year, the time from order receipt to revenue recognition and the mix of higher-margin projects.