Can lighting and components offset the slowdown in information equipment?

For the first half of the fiscal year ending December 2026, consolidated revenue was ¥11,680 million and operating profit was ¥586 million, down 2.5% and 26.5%, respectively, year on year. The largest downward factor was the information equipment business, where revenue was ¥3,442 million and segment profit was ¥180 million, down 28.7% and 76.9%, respectively. Both expressway and general-road businesses declined, so the focus for the next results will be whether orders and revenue for the road information display systems business as a whole recover, rather than merely fluctuations in a single project.

Meanwhile, the lighting equipment business posted revenue of ¥4,838 million and segment profit of ¥1,076 million, up 12.2% and 28.9%, respectively, year on year. The components business also posted revenue of ¥3,164 million and segment profit of ¥317 million, up 20.9% and 124.9%, respectively. In lighting equipment, road and tunnel lighting fixtures increased in addition to private-sector equipment-related products. In components, industrial wiring protection equipment, air-conditioner piping protection equipment and electromagnetic-environment countermeasure components increased. Next time, it will be necessary to assess both segment revenue and profit to determine how much the profit growth in lighting equipment and components can absorb the decline in information equipment.

In lighting equipment, the company expects LED replacement demand following the planned end of fluorescent-lamp production at the end of 2027 and is developing LED retrofit products for tunnel lighting fixtures using existing fluorescent lamps, as well as internal replacement technology to improve installation efficiency. However, current disclosures do not provide orders, revenue or profit contributions for these products. To determine whether product development is translating into actual orders and revenue, it will be important to see whether the amounts or order backlog for related projects are disclosed in FY2026-Q3.

In FY2026-Q3, we will look to see whether the year-on-year decline in information equipment revenue narrows from the 28.7% decline in the first half and whether segment profit recovers without falling below ¥180 million. At the same time, using segment profit of ¥1,076 million for lighting equipment and ¥317 million for components as benchmarks, we will assess whether the profit growth reflects one-off project recognition or is supported by order backlog and product-level demand.