Can the Q1 revenue and profit growth continue into FY2027-H1?

FY2027-Q1 revenue was ¥240,883 million and operating profit was ¥16,557 million, up from ¥219,725 million and ¥11,907 million, respectively, in the year-earlier period. While revenue increased 9.6%, operating profit rose 39.1% and ordinary profit rose 46.6%, indicating that higher volumes and efficiency improvements had a strong impact on earnings. The first point to confirm in FY2027-H1 is whether this profit growth was specific to the first quarter or will continue into the second quarter.

The full-year forecasts are ¥933,000 million in revenue, ¥60,000 million in operating profit, ¥65,500 million in ordinary profit and ¥39,500 million in net income attributable to owners of the parent, with no revisions made as of the Q1 results. Progress against the full-year forecasts was 25.8% for revenue and 27.6% for operating profit, meaning operating profit is slightly ahead of a simple one-quarter run rate. This is a mechanical calculation that does not account for seasonality and does not indicate that the company expects profits to be distributed evenly between the two halves.

FY2026-H1 revenue was ¥446,851 million and operating profit was ¥19,852 million. If FY2027-H1 simply achieves half of the full-year forecasts, revenue of ¥466,500 million and operating profit of ¥30,000 million would be one benchmark. Actual performance, however, needs to be assessed in light of U.S. tariffs, weak domestic demand in China and production fluctuations by region. The key issues for the next results are whether new orders in Japan, the Americas and Asia and higher sales of ordered vehicle models continue in the second quarter, and whether revenue declines in China and Europe hold back overall growth.