Profit is ahead in H1, while revenue must absorb the timing shift of large projects

FY2026-H1 revenue was ¥22,716 million, up 9.4% year on year; operating profit was ¥12,565 million, up 10.4%; ordinary profit was ¥11,611 million, up 22.3%; and interim net profit attributable to owners of the parent was ¥7,869 million, up 28.0%. Progress against the full-year operating profit forecast of ¥23,580 million was 53.3%, ordinary profit reached 59.0%, and net profit 60.5%, meaning that profit had already exceeded half of the full-year plan by H1.

Revenue progress, by contrast, was only 46.4%, leaving a gap of ¥26,244 million to the full-year forecast of ¥48,960 million. The company explained that the shortfall in H1 revenue was due to timing shifts in the recognition of large projects accounted for on a gross basis, but did not specify the value, number or recognition timing of those projects. It will therefore be necessary to confirm not only whether revenue recovers in Q3, but also whether the projects affected by the timing shift were actually recognized and whether any have been pushed back again to Q4.

On the profit side, H1 operating profit had already reached 53.3% of the full-year forecast, leaving ¥11,015 million to be achieved. The gross profit margin also rose 4.2 percentage points year on year to 81.3%, suggesting that the outcome may reflect more than a simple revenue-recognition timing issue, with product mix or the profitability of the operating lease business potentially contributing to the improvement. However, profit by reporting segment and contribution profit have not been disclosed, so it is not possible to fully isolate which businesses contributed to the margin improvement.

The first point to check in FY2026-Q3 will be whether nine-month cumulative revenue exceeds ¥24,480 million, equivalent to 50% of the full-year forecast. As operating profit had already exceeded 50% by H1, the focus will be on whether additional profit growth in Q3 leaves the remaining ¥11,015 million achievable in H2 without undue difficulty. Revenue recovery, maintenance of the gross margin and the specific recognition status of projects affected by timing shifts should be assessed together to determine whether profit is ahead because of sustainable earning power or project-recognition timing.