The FY2026 full-year forecast is unchanged, but a sharp recovery in profit is needed in the second half.

Revenue for the six months ended 30 June 2026 was ¥17.140 billion, representing progress of 46.1% against the full-year forecast of ¥37.2 billion. This was 3.9 percentage points below the simple 50% benchmark for the interim period. Although revenue alone does not indicate a significant shortfall, dependence on the second half is high. Operating profit was ¥470 million, representing progress of 35.4% against the full-year forecast of ¥1.330 billion, while ordinary profit was ¥561 million, or 37.2% of the full-year forecast.

To achieve the full-year forecast, the company needs to generate approximately ¥20.060 billion in revenue, ¥859 million in operating profit and ¥948 million in ordinary profit in the second half. FY2025-H2 results were approximately ¥18.248 billion in revenue and ¥631 million in operating profit, implying that, on a simple comparison, FY2026-H2 revenue must increase by approximately 9.9% and operating profit by approximately 36%. Given that first-half revenue declined 0.3% year on year and operating profit declined 19.6%, the second-half recovery is difficult to explain as mere seasonality and will require meaningful project progress or improved profitability.

The company’s assumptions include major redevelopment projects in the Tokyo-Nagoya-Osaka metropolitan areas entering full-scale operation from the second half, and the maintenance of appropriate selling prices in line with market conditions in response to rising construction-material prices. In the first half, however, results fell below the interim forecast because of stagnant domestic construction demand, slower project progress and higher costs, including labor costs. In FY2026-Q3, it will be important to check whether the major projects cited as second-half assumptions have begun to flow through to actual revenue and segment profit, whether price revisions have led to gross-margin recovery, and whether there are signs that the full-year forecast may need to be revised. The earnings announcement is scheduled for 10 November.