How much of the first-quarter decline in revenue and profit can be recovered in the second quarter

Revenue in the first quarter of FY2027 ending March 2027 was ¥2,509.7 million, operating profit was ¥80.8 million, ordinary profit was ¥131 million, and net profit attributable to owners of the parent was ¥121 million. Revenue declined 7.0% year on year and operating profit declined 27.7%, marking a weak start not only for the top line but also for core operating profit.

The full-year forecasts remain unchanged from the figures announced on 14 May 2026: revenue of ¥8,800 million, operating profit of ¥230 million, and net profit attributable to owners of the parent of ¥120 million. Based on a simple equal quarterly allocation, first-quarter progress was 28.5% for revenue and 35.1% for operating profit. However, as the company has not disclosed its seasonality or the timing of project recognition, 50% should not be treated mechanically as a benchmark for the company’s plan, but rather as a minimum check on first-half progress.

To reach 50% of the full-year forecast in the first half, revenue of ¥4,400 million and operating profit of ¥115 million will be required. After deducting first-quarter results, standalone second-quarter revenue of approximately ¥1,890 million and operating profit of approximately ¥34 million would bring the company to this level. Accordingly, in the next earnings release, we will look not only for second-quarter revenue growth but also for whether operating profit increased further from the first-quarter level of ¥80.8 million.

The company has not disclosed the first-half levels required against the full-year forecasts, segment budgets, or order backlog. Machinery-related revenue was ¥1,793.4 million and operating profit was ¥75.0 million in the first quarter, while resource-related revenue was ¥478.7 million but resulted in an operating loss of ¥20.1 million. First-half performance will therefore depend on a recovery in machinery-related projects and a reduction in the resource-related loss, as well as on whether the other segments can sustain their strong performance. In the next earnings release, it will be necessary to check not only whether the full-year forecasts are maintained, but also the cumulative first-half progress and the specific drivers of the standalone second-quarter changes.