FY2027 plan maintains revenue growth, but profit growth is modest

FY2026 revenue was ¥7,679 million, operating profit was ¥1,860 million, ordinary profit was ¥2,552 million, and net profit attributable to owners of the parent was ¥1,743 million. The FY2027 plan calls for revenue of ¥8,000 million, operating profit of ¥1,900 million, ordinary profit of ¥2,700 million, and net profit attributable to owners of the parent of ¥1,765 million. Revenue is planned to increase by ¥321 million, or 4.2%, while operating profit is expected to rise by only ¥40 million, or 2.2%, suggesting that the plan prioritizes maintaining and expanding business scale over improving margins.

The FY2027 plan incorporates longer housing delivery times following amendments to the Building Standards Act, uncertainty over housing supply resulting from the situation in the Middle East, and withdrawal from NextGIGA projects. At the same time, it identifies HomeworthTech's warranty and housing-stock businesses, ExtendTech's renewable energy operations, and LifeTech's systems integration business as growth drivers. Since the impact of these assumptions by amount has not been disclosed, Q1 will need to confirm whether they are reflected in actual results.

On a simple equal-quarter allocation basis, the Q1 benchmarks are revenue of ¥2,000 million, operating profit of ¥475 million, ordinary profit of ¥675 million, and net profit of ¥441 million. However, quarterly fluctuations arise from the timing of revenue recognition on warranty contracts and large projects, so these are verification thresholds rather than company guidance. FY2026-Q1 revenue was ¥1,534 million and operating profit was ¥201 million, making the extent of improvement from that level another important point.

At the earnings announcement, we will look not only at whether the full-year plan is maintained, but also at the breakdown of the ¥8,000 million revenue target, the path to operating profit of ¥1,900 million, and the factors driving ordinary profit above operating profit. In particular, if delays in housing deliveries or the reduction in GIGA warranties have a greater-than-expected impact as of Q1, whether revenue or operating profit is affected first will influence the outlook ahead.