Revenue is on plan, but operating profit is slightly behind

FY2027-Q1 revenue was ¥75.136 billion, up 4.5% year on year, while operating profit was ¥4.950 billion, up 0.8%. The full-year forecasts are revenue of ¥305.0 billion and operating profit of ¥24.5 billion, putting progress at 24.6% and 20.2%, respectively, as of Q1. Revenue is close to the simple quarterly 25% benchmark, whereas operating profit is tracking below it.

Evaluated mechanically at 50% of the full-year forecast, FY2027-H1 revenue would have a benchmark of ¥152.5 billion and operating profit a benchmark of ¥12.25 billion. However, the available information does not disclose quarterly seasonality or the company’s own H1 plan, so these are comparison benchmarks for assessing progress at the earnings release, not forecasts. Based on Q1 results, the company needs to add ¥77.364 billion in revenue and ¥7.30 billion in operating profit in H1.

Q1 operating margin was 6.6%, down 0.2 percentage points from the prior-year quarter. The full-year operating margin plan is 8.0%, a 1.4-point gap from Q1 on a simple comparison. The company attributed the pressure on operating profit to ¥700 million in R&D expenses related to new businesses and ¥700 million in unrealized inventory profit associated with expanding aftermarket product sales. In H1, it will be important to determine whether these temporary or front-loaded investment costs continue, or whether they can be absorbed through price increases and an improved materials mix.

The full-year forecasts have not changed from the figures announced on 27 April 2026, but the company has not disclosed its own assessment of whether Q1 results were above or below plan, nor a standalone H1 target. At the next earnings release, it will be important to see whether the company provides specific explanations of progress in revenue, operating profit and net profit, the operating margin, the reasons for maintaining the full-year forecasts, and the factors expected to support profit recovery in H2.