Nearly at the full-year profit forecast in Q1; reassessment of the plan in the first half is the focus

In the first quarter of the fiscal year ending March 2027, revenue was ¥2,647 million, operating profit was ¥339 million, ordinary profit was ¥396 million, and net income attributable to owners of the parent was ¥322 million. The full-year forecasts are revenue of ¥9,600 million, operating profit of ¥340 million and net income of ¥308 million. On a simple calculation, first-quarter progress rates were 27.6% for revenue, 99.7% for operating profit and 104.5% for net income.

Actual results for the previous fiscal year, which ended March 2026, were revenue of ¥8,373 million, operating profit of ¥280 million and net income of ¥292 million. The forecasts for the fiscal year ending March 2027 call for revenue growth of 14.7%, operating profit growth of 21.4% and net income growth of 5.5% from the previous year's results. However, operating profit and net income had already approached the full-year forecasts in the first quarter alone, with net income exceeding the forecast. Profit is progressing far faster than revenue, so it will be necessary to assess whether this reflects seasonality concentrated in the first half, the recognition of specific projects, or conservative full-year forecasts.

Based on the information currently available, a quarterly breakdown of the full-year plan, order backlog, sales volumes and profit contributions by project cannot be confirmed. It is therefore not possible to determine whether the first-quarter operating profit of ¥339 million reflects normal earnings power or resulted from specific transactions or temporary margin improvement. How much operating profit accumulates in the second quarter alone will be an important indicator of the reliability of the full-year forecast.

At the next earnings release, we will confirm whether first-half cumulative revenue exceeds the simple 50% benchmark of ¥4,800 million, whether first-half operating profit exceeds ¥340 million, and whether net income exceeds ¥308 million. If operating profit or net income exceeds the full-year forecast by the end of the first half, it should also be confirmed whether leaving the full-year forecast unchanged is effectively a conservative measure or whether a forecast revision is overdue. Conversely, if profit falls sharply in the second quarter, the likelihood will increase that the first quarter's high profitability was not sustainable.