The gap to the medium-term plan target remains even in the final year of YSP2026

YSP2026 covers the 2024–2026 fiscal years and sets targets for FY2026 of consolidated revenue of ¥210,000 million, a consolidated operating margin of 4.5%, and ROE of 8.0%. FY2026 actual results, however, were revenue of ¥176,330 million and operating profit of ¥3,980 million, resulting in an operating margin of approximately 2.3%. Revenue reached approximately 84% of the target, while the operating margin was approximately 2.2 percentage points below target, leaving a substantial shortfall in terms of delivering results in the final year of the plan.

The FY2027 company forecast is revenue of ¥166,000 million, operating profit of ¥3,300 million, ordinary profit of ¥2,100 million, and net income attributable to owners of the parent of ¥1,100 million. The operating margin is approximately 2.0%, below YSP2026’s 4.5% target. First-quarter results were revenue of ¥44,548 million and operating profit of ¥755 million, representing progress rates of approximately 26.8% and 22.9%, respectively, against the full-year forecast. As of the first quarter, profit was progressing somewhat more slowly than revenue, making profit accumulation in the first half necessary.

For FY2027-H1, simple half-year run-rate figures of ¥83,000 million in revenue and ¥1,650 million in operating profit provide one reference point. However, automotive parts are affected by customers’ production volumes, die sales, foreign exchange and model changes, so reaching 50% alone is not sufficient to assess full-year achievement. At the interim earnings release, the key points will be whether the company maintains its forecast, how it assesses YSP2026’s final-year target, and how it resets profitability targets in the next medium-term plan.