Most of the full-year operating profit was achieved in H1, but the full-year forecast remains unchanged

FY2026-H1 consolidated revenue was ¥7,120 million, operating profit was ¥905 million, and ordinary profit was ¥998 million, representing year-on-year increases of 9.2%, 12.3%, and 26.1%, respectively. Operating profit grew faster than revenue, indicating improved profitability in H1. However, interim net income attributable to owners of the parent fell 39.5% year on year to ¥548 million, showing a divergence between operating performance and bottom-line earnings.

The full-year forecasts are revenue of ¥12,600 million, operating profit of ¥1,030 million, ordinary profit of ¥1,100 million, and net income attributable to owners of the parent of ¥880 million. H1 progress rates were 56.5% for revenue, 87.9% for operating profit, 90.7% for ordinary profit, and 62.3% for net income. On a simple calculation, H2 would need to generate ¥5,480 million in revenue, ¥125 million in operating profit, ¥102 million in ordinary profit, and ¥332 million in net income, making the full-year profit forecasts appear more achievable than the revenue forecast.

However, the background to operating profit reaching ¥905 million in H1 included substantial revenue growth in the Thermal segment and solid performance in the SSP segment. In FY2026-Q3, it will be necessary to confirm whether these H1 factors will continue and whether higher costs in H2, including raw materials, production equipment investment, and personnel expenses, will weigh on profit. In particular, the assumption that H2 operating profit will be only ¥125 million does not represent a plan that simply extends the H1 profit level, making the company's explanation of seasonality and the timing of project recognition important.

The decline in interim net income was caused by extraordinary losses totaling ¥166.653 million, including an impairment loss on investment securities of ¥88.403 million and an additional provision for product modification-related loss of ¥76.346 million. In Q3, the focus will be not only on progress in operating profit and ordinary profit but also on whether net income recovers toward the full-year forecast of ¥880 million, including whether additional quality-related provisions or impairment losses on securities arise.