Can the 1Q shortfall be recovered in FY2027-H1?

1Q revenue from April to June 2026 was ¥2,166 million, down 6.2% year on year. Progress against the full-year revenue forecast of ¥10,000 million was 21.7%, approximately ¥334 million below the 25.0% implied by simply dividing the annual forecast into four quarters, or ¥2,500 million. However, the company has not disclosed its quarterly seasonality, so 25% is a mechanical benchmark for measuring progress, not part of the company’s plan.

On the earnings side, 1Q operating results were a loss of ¥55 million, ordinary results were a loss of ¥29 million, and net income attributable to owners of the parent was a loss of ¥23 million. In contrast, the full-year forecasts are operating profit of ¥300 million, ordinary profit of ¥350 million and net income of ¥250 million. Based solely on operating profit, the company will need to generate approximately ¥355 million of operating profit from Q2 onward to cover the 1Q loss and reach the full-year plan.

For revenue, subtracting actual 1Q revenue of ¥2,166 million from the full-year forecast of ¥10,000 million leaves ¥7,834 million to be generated over the remaining three quarters, or approximately ¥2,611 million per quarter on average. This is approximately ¥445 million above actual 1Q revenue. Accordingly, in FY2027-H1 it will be necessary to confirm not only whether the loss narrows, but also whether orders and sales volumes, price revisions and contributions from new products are translating into a revenue recovery.

As of 1Q, the full-year earnings forecast and annual dividend forecast of ¥20 remained unchanged, but no numerical data was disclosed for business KPIs such as orders received, order backlog and sales volume, or for cash flow from operating activities. At the next results announcement, we will assess the actual cumulative revenue and full-year progress rate, whether operating results have turned profitable, and whether the full-year forecast has been revised, as well as whether the factors behind the 1Q revenue decline were temporary. The results announcement is scheduled for 6 November 2026.