FY2027-Q1 delivered higher revenue and profit, but progress toward the full-year forecast is somewhat weak for both.

In the first quarter from April to June 2026, revenue was ¥38,663 million, operating profit was ¥1,336 million and ordinary profit was ¥1,514 million. Compared with revenue of ¥33,457 million and operating profit of ¥966 million in the same period of the previous year, revenue increased by ¥5,206 million and operating profit by ¥370 million. The operating margin also rose from approximately 2.9% in the same period of the previous year to approximately 3.5%, indicating an improvement in core profitability as well as the top line.

However, the company’s FY2027 full-year forecasts are revenue of ¥180,000 million and operating profit of ¥8,500 million, putting first-quarter progress at 21.5% and 15.7%, respectively. Compared with the 25% implied by simple equal quarterly allocation, revenue is 3.5 percentage points behind and operating profit 9.3 percentage points behind. The Special-Purpose Vehicle business contributed revenue of ¥32,376 million and operating profit of ¥1,078 million, while the Environmental business contributed revenue of ¥4,268 million and operating profit of ¥403 million. However, achieving the full-year forecasts will require confirmation that revenue is recognized and profits are collected in the second half.

The company did not prepare a quarterly consolidated cash flow statement for the first quarter, and operating, investing and financing cash flows have not been disclosed. In FY2027-H1, it will be important to assess not only whether revenue exceeds the year-earlier level, but also whether operating profit progress exceeds 25%, whether the full-year forecasts will be maintained, and whether the company can keep operating cash flow positive.