First-half results are broadly in line with the full-year plan, but ¥893 million in operating profit must be generated in the second half.

First-half revenue for the fiscal year ending December 2026 was ¥30,852 million, up 7.8% year on year, while operating profit was ¥757 million, up 5.5%. Ordinary profit was ¥764 million, up 6.9%, and interim net income attributable to owners of the parent was ¥514 million, up 1.7%, with all levels of the income statement remaining profitable. However, bottom-line profit growth was lower than operating profit growth, meaning that revenue growth did not translate directly into bottom-line profit growth.

Progress against the full-year forecast was 30,852 ÷ 65,300, or 47.2%, for revenue; 757 ÷ 1,650, or 45.9%, for operating profit; and 514 ÷ 1,130, or 45.5%, for net income attributable to owners of the parent. Accordingly, assuming the first and second halves are evenly weighted, progress was approximately 4.1 percentage points below the 50% benchmark for operating profit and approximately 4.5 percentage points below it for net income. Since the company has left its forecast unchanged, FY2026-Q3 will need to establish whether this gap reflects seasonality or an assumption that projects will be concentrated in the second half.

To achieve the full-year plan, the company needs ¥34,448 million in revenue, ¥893 million in operating profit and ¥616 million in net income attributable to owners of the parent in the second half. The required second-half operating profit is 17.9% above the ¥757 million reported in the first half, requiring a faster pace of profit accumulation. The required second-half revenue is 11.7% above first-half revenue, making it important whether large FM projects and demand from large corporate customers in the MRO business continue.

For FY2026-Q3, the simple 75% benchmark based on the annual plan is ¥48,975 million in revenue, ¥1,237.5 million in operating profit and ¥847.5 million in net income. These are not seasonally adjusted targets indicated by the company, but mechanical thresholds for checking progress. In the Q3 earnings release, it will be important to see whether the company provides specific explanations not only for maintaining its full-year forecast, but also for the order volume and project pipeline required in the second half, the recovery in FM profitability and the cost burden in the MRO business.