Strong 1Q progress, but most of the full-year plan remains weighted to 2Q onward

In FY2027 1Q, revenue was ¥543.5 billion, up ¥55.1 billion year on year, while business profit was ¥35.7 billion, up ¥15.2 billion. The business profit margin was 6.6%, profit before tax was ¥34.7 billion, and profit attributable to owners of the parent was ¥15.6 billion, indicating a substantial improvement not only in revenue but also in profit from the operating level downward. The full-year forecasts are revenue of ¥2.56 trillion, business profit of ¥180 billion, profit before tax of ¥157 billion, profit attributable to owners of the parent of ¥115 billion and post-tax ROIC of 8.6%.

The changes in 1Q business profit included a +¥9.4 billion FX impact, a +¥2.7 billion revenue impact, a +¥9.1 billion impact from changes in revenue mix and other factors, and a +¥1.3 billion contribution from equity-method investment gains and losses. These were partly offset by a ¥3.7 billion increase in costs resulting from US tariff policies and a ¥3.6 billion change in SG&A expenses. The breakdown of changes in revenue mix and other factors includes pricing improvements of +¥9.0 billion, IEEPA tariff refunds of +¥8.0 billion, and inflation effects, product mix and other factors of −¥7.9 billion. Accordingly, in FY2027-H1 it will be necessary to distinguish the underlying strength of pricing, volumes and fixed-cost reductions from the reversal of the tariff refund benefit.

Subtracting the 1Q result of ¥35.7 billion from full-year business profit of ¥180 billion means that ¥144.3 billion must be earned in 2Q–4Q. This represents 80.2% of the full-year plan, so the strong 1Q results do not by themselves secure achievement of the full-year target. The company forecasts 2Q–4Q business profit of ¥144.3 billion and revenue of ¥2.0165 trillion. At the next results announcement, the key points will be cumulative first-half business profit, the business profit margin, profit drivers excluding tariffs and FX, and whether the full-year forecast is maintained or revised again.