Can the first-quarter earnings lead be maintained through the first half?

The next results announcement is scheduled for 13 November 2026. In the first quarter of the fiscal year ending March 2027, revenue was ¥6,495 million, operating profit was ¥361 million, ordinary profit was ¥260 million and net profit attributable to owners of the parent was ¥162 million, representing year-on-year increases of 6.2%, 97.3%, 88.8% and 47.3%, respectively. Operating profit grew faster than revenue, making this a period in which earnings progress should be prioritised for review.

The full-year forecasts are revenue of ¥25,000 million, operating profit of ¥1,100 million, ordinary profit of ¥800 million and net profit of ¥430 million. First-quarter progress was 26.0% for revenue, 32.9% for operating profit, 32.5% for ordinary profit and 37.8% for net profit. Compared with a simple equal quarterly allocation, first-quarter revenue slightly exceeded one-quarter of the full-year target, while operating profit was ¥86 million above the quarterly benchmark of ¥275 million. Accordingly, first-half cumulative revenue of ¥12,500 million and operating profit of ¥550 million provide mechanical benchmarks for review, although these are not company-published first-half forecasts.

In the first half of the previous fiscal year ending March 2026, revenue was ¥12,351 million and operating profit was ¥338 million. Even if revenue reaches ¥12,500 million in the current first half, the year-on-year increase would be only ¥149 million. If operating profit reaches ¥550 million, however, the year-on-year increase would be ¥212 million, or approximately 63%. Based on the first-quarter result of ¥361 million, whether first-half operating profit exceeds ¥550 million, or at least clearly surpasses the ¥338 million recorded in the previous first half, will be a key measure of the sustainability of margin improvement.

At the end of the first quarter, the amounts still required to achieve the full-year forecasts were ¥18,505 million in revenue and ¥739 million in operating profit. The required operating margin for the remaining 9 months is approximately 4.0%, below the first-quarter margin of 5.6%. The full-year forecasts had not been revised as of the first quarter. However, order intake, order backlog and the company’s own assessment of its plan have not been disclosed numerically. In the second quarter, we will review not only cumulative results but also the reasons for maintaining the full-year forecasts and the revenue and profit levels required in the second half.