Review of first-half progress against the full-year forecast for the fiscal year ending March 2027

FY2027-Q1 revenue was ¥111,962 million, operating profit was ¥5,422 million, ordinary profit was ¥5,669 million, and net profit attributable to owners of the parent was ¥3,839 million. The full-year forecasts are revenue of ¥448,000 million, operating profit of ¥21,000 million, ordinary profit of ¥21,500 million, and net profit of ¥14,000 million, with no revision to the forecasts as of Q1. Revenue progress was approximately 25.0% and operating profit progress approximately 25.8%, putting performance broadly on track compared with simple even quarterly progress.

However, it is too early to judge full-year performance based only on the Q1 progress rate. In FY2026-H1, revenue was ¥186,188 million and operating profit was ¥5,550 million, making it a direct benchmark for assessing whether FY2027-H1 can first exceed that level. Although Q1 has reached around 25% of the full-year forecast, the impact of first-half seasonality and the production ramp-up of new models from Q2 onward has not yet been confirmed in the results.

FY2027-Q1 operating profit improved substantially, rising 143.5% year on year, a pace above the 48.3% year-on-year increase projected for the full year. The key question is whether this gap will continue through the first half and beyond, or be normalised by new-model launch costs, model mix and changes in production efficiency. In particular, although the company cited higher unit volumes, model mix and cost-reduction activities as factors behind the Q1 profit increase, it has not disclosed a profit bridge by factor.

At the next results announcement, it will be necessary to review first-half cumulative revenue and operating profit, progress against the full-year forecast, the profit required in the second half, and the reasons for leaving the forecast unchanged. If first-half operating profit clearly exceeds ¥5,550 million while the full-year forecast of ¥21,000 million is maintained, this would increase the likelihood that improved production efficiency for new models is not temporary. If first-half revenue exceeds the year-earlier figure but profit remains sluggish, the plan would require a high level of profit in the second half, making explanations of costs and utilisation important.