Focus is on whether the pace of progress, with 80% of the full-year operating profit forecast achieved in Q1, can be sustained

In Q1 of the fiscal year ending March 2027, consolidated revenue was ¥12,586 million, operating profit was ¥1,295 million, ordinary profit was ¥1,311 million, and net profit attributable to owners of the parent was ¥886 million. Year on year, revenue increased 23.5%, operating profit 203.6%, ordinary profit 219.8% and net profit 124.0%. Progress against the full-year forecasts was 27.4% for revenue, 80.9% for operating profit, 87.4% for ordinary profit and 88.6% for net profit, meaning that profits are substantially ahead of the 25% elapsed on a calendar-year basis.

Against Q1 operating profit of ¥1,295 million, only ¥305 million remains to meet the full-year forecast. Revenue, by contrast, requires ¥33,414 million more to reach the full-year forecast of ¥46,000 million, indicating a large gap between revenue and profit progress. The Q1 operating margin was approximately 10.3%, around 6.1 percentage points above the approximately 4.2% calculated from revenue of ¥10,192 million and operating profit of ¥426 million in the prior-year quarter. The strong profit progress may therefore reflect not only higher sales volume, but also the mix of projects, construction progress and the impact of foreign-currency-denominated construction work.

The company's full-year forecasts for the fiscal year ending March 2027 are revenue of ¥46,000 million, operating profit of ¥1,600 million, ordinary profit of ¥1,500 million and net profit of ¥1,000 million. Operating profit is planned to decline 48.0% and net profit 56.5% from the fiscal year ended March 2026. The full-year forecasts may appear conservative based on Q1 results alone, but the disclosed information does not provide cumulative first-half forecasts or the quarterly allocation of profit. It is not yet possible to determine whether Q1's high profitability will be repeated throughout the year, or whether the plan assumes a concentration of lower-margin projects or cost increases in the second half.

At the next earnings announcement, it will be important to see whether Q2 cumulative operating profit exceeds ¥1,295 million and whether the operating margin remains near Q1's 10.3%. It will also be necessary to confirm whether the company's view of the ¥1,600 million full-year forecast is to maintain it, revise it upward, or maintain it on the assumption that Q1's profit lead is temporary.