Q1 profit progress is strong, but the full-year forecast factors in a slowdown in the second half

FY2027-Q1 revenue was ¥14,393 million, up 14.7% year on year, while operating profit was ¥353 million, up 175.2%. Ordinary profit was ¥492 million and profit attributable to owners of the parent was ¥306 million, with all major profit measures in the black. Simple progress against the full-year forecasts was 27.2% for revenue, 32.1% for operating profit, 41.0% for ordinary profit and 51.0% for net profit.

However, the full-year forecasts remain unchanged at revenue of ¥53,000 million, operating profit of ¥1,100 million, ordinary profit of ¥1,200 million and profit attributable to owners of the parent of ¥600 million. Simply deducting Q1 results means that revenue of ¥38,607 million, operating profit of ¥747 million, ordinary profit of ¥708 million and net profit of ¥294 million will be required from Q2 onward. Operating profit for the remaining 9 months must exceed the ¥353 million recorded in Q1 on a cumulative basis, so it is too early to judge full-year achievement solely on the basis of Q1's high growth rate.

In FY2026, revenue was ¥54,756 million, operating profit was ¥1,496 million and ordinary profit was ¥1,730 million. By contrast, the FY2027 company forecasts imply declines of 3.2% in revenue, 26.5% in operating profit and 30.7% in ordinary profit. In Q1, demand centered on heavy trucks and an increase in domestic medium- and heavy-duty truck sales contributed to higher revenue. However, because the company is planning lower revenue and profit for the full year, it is necessary to confirm whether first-half demand will continue into the second half and the extent to which the company has factored in raw material and energy prices and foreign-exchange effects.

The Q1 earnings summary contained no revision to the earnings forecasts, and no supplementary financial results materials or earnings presentation had been disclosed. In addition, no cash flow statement was prepared for Q1, so operating cash flow and order backlog cannot be confirmed. In FY2027-H1, it will be necessary to verify whether cumulative operating profit has reached at least around ¥500 million, together with revenue and profit progress against the full-year forecasts, whether the forecasts are maintained or revised, and whether cash flow information is disclosed.