Revenue growth continues on demand for AI and industrial equipment, but operating profit is not progressing as quickly as sales

Revenue in the first quarter of the fiscal year ending March 2027 was ¥20,880 million, up ¥4,034 million, or 23.9%, from ¥16,845 million in the same quarter of the previous year. Operating profit was ¥851 million, ordinary profit was ¥1,315 million, and net income attributable to owners of the parent was ¥1,629 million. Operating profit rose 70.2% year on year and ordinary profit rose 148.0%. Based on these first-quarter results, the company raised its full-year forecasts to revenue of ¥87,300 million, operating profit of ¥5,360 million and ordinary profit of ¥6,040 million.

Revenue growth was driven by stronger demand for AI-related equipment and from distributors, a recovery in demand for industrial equipment following inventory adjustments, and steady demand from the automotive sector. Orders were ¥24,572 million, the order backlog was ¥17,356 million, and the book-to-bill ratio rose to 1.18x. The key point for FY2027-H1 will be whether orders and the order backlog are sufficient to support production and shipments in the next quarter, rather than merely supporting near-term revenue recognition.

First-quarter revenue represented approximately 23.9% of the full-year forecast, close to the 25% benchmark implied by an even quarterly split. Operating profit was ¥851 million divided by ¥5,360 million, or approximately 15.9%, lagging revenue. On a simple half-year basis, ¥43,650 million of revenue and ¥2,680 million of operating profit would be reference points for FY2027-H1. Although seasonality and fluctuations in raw material prices mean these are not mechanical targets, they provide practical benchmarks for assessing how much of the revenue growth is converted into profit.