Focus on first-half progress against the FY2027 plan after the upward revision

In the first quarter of the fiscal year ending March 2027, revenue was ¥29,897 million, operating profit was ¥1,013 million, ordinary profit was ¥1,219 million and quarterly net income attributable to owners of the parent was ¥450 million. Revenue increased 16.4% year on year, while operating profit turned positive from a loss of ¥217 million in the prior-year period. Orders received also increased 3.5% year on year to ¥51,474 million, indicating an improvement in business volume at the start of the fiscal year.

Meanwhile, in the earnings forecast revision announced on 29 October, full-year FY2027 revenue was raised from the previous forecast of ¥157,600 million to ¥164,300 million, operating profit from ¥19,000 million to ¥22,500 million, and profit attributable to owners of the parent from ¥13,310 million to ¥16,700 million. The ¥3,500 million upward revision to operating profit represents an increase of more than 18% from the previous forecast. The company cited progress in additional orders, improved profitability on completed large-scale projects, price revisions and operating efficiencies as the reasons for the revision.

For FY2027-H1, the comparison figures will be prior-year first-half revenue of ¥57,020 million, operating profit of ¥2,877 million, ordinary profit of ¥3,265 million and interim net income attributable to owners of the parent of ¥2,102 million. A return to profitability in the first quarter alone is insufficient to assess progress toward the first-half plan, so it will be necessary to confirm whether revenue growth and profit improvement continued in the second quarter and whether the upward revision depended on temporary project profitability in the first quarter.

The first-quarter disclosure did not provide progress rates for revenue or operating profit against the full-year forecasts, or amounts by factor for the effects of price revisions, project profitability and higher selling, general and administrative expenses. In the next earnings release, it will be important to see whether the company can disclose not only first-half results, but also progress against the upwardly revised full-year forecasts, the revenue and operating profit required in the second half, and the amount of the order backlog scheduled to be recognized from the second half of FY2027 onward.