H1 profit is ahead of plan; after the upward revision, execution in H2 is the focus for the full-year outlook

For the six months ended June 2026, consolidated revenue was ¥17,295 million, down 1.5% year on year, while operating profit was ¥1,563 million, up 0.4%, and ordinary profit was ¥1,604 million, up 2.0%. Net profit attributable to owners of the parent was ¥858 million, down 2.0%. Revenue progress was 49.4% against the full-year forecast of ¥35,000 million, while operating profit progress was 55.8% against the full-year forecast of ¥2,800 million, indicating that profit is running ahead of revenue.

The full-year forecast leaves revenue unchanged at ¥35,000 million, while raising operating profit from ¥2,500 million to ¥2,800 million, ordinary profit from ¥2,500 million to ¥2,800 million, and net profit attributable to owners of the parent from ¥1,600 million to ¥1,700 million. Accordingly, the upward revision appears to reflect a reassessment of profit margins, driven by price pass-through, a higher mix of value-added products and improved profitability in the rental-related business, rather than an increase in revenue scale.

Simply deducting the first-half results from the full-year forecast leaves H2 requirements of ¥17,705 million in revenue, ¥1,237 million in operating profit and ¥842 million in net profit. In revenue terms, 50.6% of the full-year total must be generated in H2, while 44.2% of forecast operating profit remains. Profit progress through the first half was solid, but the company must reach these levels while absorbing the H2 weighting of revenue and the decline following the previous fiscal year’s Osaka-Kansai Expo-related projects.

At the next results announcement, we will check the extent to which nine-month cumulative revenue has progressed against the full-year plan and whether the operating margin has been maintained or improved from the approximately 9.0% calculated for the first half. We will also need to determine whether the contribution from price pass-through and higher-priced products in the rental-related business reflects only the first-half project mix or a structural improvement that will continue into H2. The presence or absence of another revision to the full-year forecast, the timing of costs associated with the logistics warehouse investment, and management’s explanation of the remaining period in light of weakness in merchandise sales and ICT will also be important.