FY2027 full-year forecast raised again following Q1 upside

FY2027-Q1 sales revenue was ¥271.672 billion, operating income was ¥49.210 billion and quarterly profit attributable to owners of the parent was ¥33.872 billion. Year on year, sales revenue increased 10.3%, operating income 15.4% and net income 8.2%, while the operating margin was 18.1%, above the year-earlier level. At least as of the first quarter, this confirms a reversal from the earnings decline seen in FY2026.

From the full-year FY2027 forecast as of April, the company raised sales revenue by ¥45.0 billion from ¥1.065 trillion to ¥1.110 trillion and operating income by ¥7.0 billion from ¥193.0 billion to ¥200.0 billion. Forecast profit before tax was changed to ¥200.0 billion and profit for the year attributable to owners of the parent to ¥142.0 billion. Q1 actual operating income represented approximately 24.6% of the ¥200.0 billion full-year forecast, exceeding a simple even quarterly allocation, although seasonality and the sustainability of demand from the second quarter onward have not yet been tested.

In this outlook revision, the US dollar assumption was changed from ¥153.0 as of April to ¥158.0 as of July, and a ¥10.0 billion impact from the situation in the Middle East was incorporated. At the next interim earnings release, it should be confirmed whether the higher earnings outlook reflects only the change in foreign exchange assumptions or also improvements in volume, product mix and pricing. The Q1 supplementary materials do not disclose progress against the full-year forecast or the company's own assessment of its plan, so the interim results should be checked for cumulative sales revenue, cumulative operating income, operating margin, and whether the full-year forecast is maintained or revised again.