FY2027-H1 focus: progress against the upgraded full-year plan and whether profit is running ahead

For the first quarter of the fiscal year ending March 2027, revenue was ¥13,939 million, operating profit was ¥960 million, ordinary profit was ¥840 million and net income attributable to owners of the parent was ¥362 million. The upgraded full-year forecasts are ¥57,650 million for revenue, ¥3,875 million for operating profit, ¥3,426 million for ordinary profit and ¥1,660 million for net income, implying first-quarter progress rates of approximately 24.2%, 24.8%, 24.5% and 21.8%, respectively. Revenue and operating profit are close to a simple even quarterly run rate, while net income is progressing more slowly.

In FY2026, revenue was ¥36,662 million and operating profit was ¥3,633 million, compared with FY2027 forecasts of ¥57,650 million and ¥3,875 million, respectively. In other words, revenue is expected to expand substantially, including the acquisition contribution, while the increase in operating profit is limited, indicating a divergence between revenue and profit growth. The first-quarter materials state that the company upgraded its first-half and full-year forecasts. In FY2027-H1, it will therefore be necessary to determine whether the revision reflects a temporary pull-forward or a broader improvement in earnings capacity extending into the second half.

For practical assessment, ¥28,825 million, or 50% of the full-year revenue forecast, and ¥1,938 million of operating profit can be used as benchmarks for a simple even first-half run rate. However, the company explained as of the first quarter that recruitment expenses and site-related costs may arise from the second quarter onward, so profit should not be assessed solely on whether it reaches 50%. It will be important to determine whether second-quarter profit growth is being driven not only by revenue from the acquired subsidiaries, but also by gross-margin improvement and selling, general and administrative expense control.

Net income declined 4.7% year on year in the first quarter and did not improve as much as operating profit. The earnings presentation attributed this to the early recognition of temporary tax expenses and expected the effect to unwind in the second quarter. In FY2027-H1, the key points will be whether net income recovered as tax expenses normalized, whether progress toward the ¥1,660 million net income forecast improved, and whether the full-year forecast was maintained or revised again.