FY2027 Q1 got off to a good start, with operating profit growing faster than revenue

Consolidated revenue from April to June 2026 was ¥22,365 million, while operating profit was ¥1,220 million. Compared with revenue of ¥20,170 million and operating profit of ¥904 million in the same period a year earlier, revenue rose 10.9% and operating profit rose 34.9%, securing profit growth in excess of revenue growth. Ordinary profit was ¥1,278 million, and net income attributable to owners of the parent was ¥806 million.

The FY2027 full-year forecasts are revenue of ¥91,000 million, operating profit of ¥4,950 million and net income attributable to owners of the parent of ¥3,400 million. Progress based on Q1 results was 24.6% for revenue, 24.6% for operating profit and 23.7% for net income. While this is close to a simple one-quarter run rate, it is a mechanical comparison at the Q1 stage, not an assessment of achievement against the company’s plan after adjusting for seasonality.

Using 50% of the full-year forecast as a simple benchmark for the next first-half results, cumulative first-half revenue, operating profit and net income would be expected to reach ¥45,500 million, ¥2,475 million and ¥1,700 million, respectively. The additional amounts required in Q2 based on Q1 results are ¥23,135 million, ¥1,255 million and ¥894 million, respectively. Whether Q2 operating profit can secure around ¥1,255 million will be the first test of whether the high profit growth in Q1 was non-recurring.

At the next results announcement, we will look at first-half revenue, operating profit and net income, as well as whether the full-year forecasts of ¥91,000 million, ¥4,950 million and ¥3,400 million are maintained or revised, and the reasons for any changes. The financial summary currently available does not show the contribution of each business to the full-year forecasts or the order backlog. It will therefore also be important to see whether the company discloses whether the ¥23,135 million of additional Q2 revenue was driven by prices, volumes or contributions from subsidiaries.