High-margin lease fund business supports company-wide earnings; FY2026 full-year profit forecast remains within reach

Consolidated revenue for the cumulative third quarter of FY2026 ending September 2026 was ¥51.417 billion, down 43.3% from ¥90.698 billion in the same period a year earlier. Operating profit was ¥17.619 billion, down 8.6% year on year, ordinary profit was ¥17.648 billion, down 12.6%, and net profit attributable to owners of the parent was ¥12.102 billion, down 12.0%. Profit declined by less than revenue, and the operating margin rose from approximately 21.2% in the same period a year earlier to approximately 34.3% in the current period. This indicates that the current business mix, which prioritizes project profitability even as sales volume contracts, provides a degree of earnings protection.

The lease fund business generated revenue of ¥25.373 billion and segment profit of ¥22.301 billion, up 23.6% and 29.3%, respectively, from the same period a year earlier. The presentation materials disclosed gross profit of ¥22.30 billion and investment sales of ¥183.30 billion, explaining that sales of high-margin projects and closing fees from lease arrangement projects for US investors by FPG Amentum Limited contributed to results. The full-year forecasts are revenue of ¥28.50 billion, gross profit of ¥24.62 billion and investment sales of ¥210.51 billion, leaving ¥3.13 billion, ¥2.32 billion and ¥27.21 billion, respectively, to be generated after the cumulative third quarter.

On a consolidated basis, progress against the full-year operating profit forecast of ¥23.157 billion was 76.1%, while ordinary profit reached 77.2% and net profit 78.0%. Revenue progress was only 62.0%, but the company would meet its forecasts if it secures fourth-quarter operating profit of ¥5.538 billion, ordinary profit of ¥5.212 billion and net profit of ¥3.393 billion. The presentation materials describe earnings progress of more than 75% as proceeding smoothly, but do not show consolidated results for the third quarter alone, and do not disclose standalone quarterly margins or expense allocation.

At the next FY2026 full-year results announcement, it will be necessary to confirm not only whether lease fund investment sales approached the full-year forecast of ¥210.51 billion, but also whether gross profit increased from ¥22.30 billion for the cumulative third quarter to ¥24.62 billion. It will also be necessary to examine, using the gross margin and selling, general and administrative expense breakdown, whether the increase in bonuses associated with strong performance at FPG Amentum Limited continued into the fourth quarter, and whether strong sales reflected high-margin projects or simply higher sales volume.