Will the FY2027 revenue and earnings growth plan get off to a start in FY2027-Q1?

Consolidated revenue in FY2026 was ¥3,706 million, down 3.2% year on year, while operating profit was ¥284.8 million, down 15.1%, ordinary profit was ¥299 million, down 13.4%, and net income attributable to owners of the parent was ¥192.1 million, down 10.1%. In contrast, the company forecasts FY2027 revenue of ¥3,900 million, operating profit of ¥320 million, ordinary profit of ¥330 million and net income of ¥220 million, implying revenue growth of 5.4% and operating profit growth of 12.4%. In FY2027-Q1, the first point to confirm is whether this revenue and earnings growth plan is getting underway year on year.

Revenue in the year-earlier period, FY2026-Q1, was ¥821.4 million, operating profit was ¥52.1 million, ordinary profit was ¥55.1 million and net income was ¥31.2 million. Accordingly, if FY2027-Q1 revenue falls below ¥821.4 million, the weak initial progress against the full-year revenue growth plan of 5.4% will become a concern. For operating profit, ¥52.1 million is the minimum comparison benchmark. It will be necessary to confirm not only whether this level is exceeded, but also whether the operating margin has improved from approximately 6.3% in the year-earlier period.

A reference benchmark based on simply allocating one-quarter of the full-year forecast is revenue of ¥975 million and operating profit of ¥80 million. However, the timing of quarterly revenue recognition can fluctuate depending on delivery timing and construction periods for capital investment projects, so these figures are not the company's quarterly forecasts. In FY2027-Q1, progress should be assessed not only by a simple progress rate, but also by the delivery timing of booked projects, the extent to which extended lead times have been resolved, and the recovery in profit margins.

The previous fiscal-year results provided a full-year forecast for FY2027, but did not disclose quarterly revenue and operating profit plans or order backlog. In the next results announcement, the points to confirm will include year-on-year results, the progress rate against the full-year forecast, whether the forecast has been maintained or revised, and whether the recovery is being driven by volume, pricing or project mix.