1Q earnings are ahead of the full-year forecast; the first half will test whether this lead can be sustained

For 1Q from April to June 2026, revenue was ¥13,806,399 thousand, operating profit was ¥1,109,572 thousand, ordinary profit was ¥1,141,517 thousand, and net profit attributable to owners of the parent was ¥891,234 thousand. From the same period a year earlier, revenue increased 7.8%, operating profit 37.6%, ordinary profit 26.5% and net profit 46.9%, with operating profit and net profit growing faster than revenue.

The full-year forecasts included in the financial summary are revenue of ¥50,000,000 thousand, operating profit of ¥3,000,000 thousand and net profit of ¥2,000,000 thousand. Progress against the full-year forecast was 27.6% for revenue, 37.0% for operating profit and 44.6% for net profit, all above the 25% benchmark based simply on one quarter of the year. However, the 1Q materials do not provide quarterly forecasts for the first half or a breakdown of seasonality, so this early progress cannot be taken as evidence that full-year results will exceed expectations.

The company maintained its first-half and full-year forecasts announced on 14 May 2026. It cited the foreign-exchange translation benefit from the weaker yen against the Thai baht and US dollar and North American demand as factors behind the revenue increase, and the weaker yen and lower depreciation following impairment losses recognized in the previous fiscal year as factors behind the profit increase. It also explained that labor costs from wage increases and procurement costs had risen. However, no quantitative bridge has been disclosed showing by how many thousands of yen foreign exchange, demand, costs and depreciation each increased or reduced operating profit of ¥1,109,572 thousand.

At the next first-half results announcement, we will check not only how far revenue of ¥25 billion, operating profit of ¥1.5 billion and net profit of ¥1 billion, representing simple half-year progress benchmarks, are exceeded, but also whether the operating margin can remain around 8.0%, its 1Q level. The results are scheduled to be announced on 13 November 2026, so we will also check whether the full-year forecasts, the ¥20 annual dividend and first-half progress by region and segment are updated.