First-quarter results were in line with the full-year plan, but no numerical guidance was provided for the first half

Revenue for the first quarter of the fiscal year ending March 2027 was ¥8,060 million, up 6.9% year on year, while operating profit was ¥462 million, up 11.0%. The full-year forecasts are revenue of ¥32,000 million and operating profit of ¥1,730 million, resulting in first-quarter progress rates of 25.2% for revenue and 26.7% for operating profit. Compared with the 25% mark after three months, it is difficult to conclude that either revenue or operating profit is materially behind schedule.

After subtracting first-quarter results from the full-year forecasts, the company needs to generate ¥23,940 million in revenue and ¥1,268 million in operating profit over the remaining three quarters. These figures are slightly below the revenue of ¥32,240 million and operating profit of ¥1,850 million that would result from simply annualising the first-quarter results, so the remaining amount required to meet the plan is not excessive at this stage. However, the company has not disclosed seasonality or the timing concentration of project deliveries, so first-half progress cannot be assessed based solely on simple progress rates.

The mechanical 50% first-half thresholds are revenue of ¥16,000 million and operating profit of ¥865 million. First-half results for the previous fiscal year were revenue of ¥14,421 million and operating profit of ¥749 million. Reaching these thresholds would therefore require revenue to increase by approximately 10.9% and operating profit by approximately 15.5% year on year. The need to accelerate further from the first quarter's 6.9% revenue growth and 11.0% operating profit growth is a point to verify at the next earnings announcement.

As of the first quarter, there had been no revision to the full-year forecasts, and the company had not provided its own numerical guidance for first-half revenue or operating profit. It had also not disclosed segment revenue or profit, orders received, or order backlog. Next time, we will look for additional quantitative explanations not only of the first-half results, but also of the basis for maintaining the full-year forecasts of ¥32,000 million in revenue and ¥1,730 million in operating profit, and the feasibility of generating the ¥23,940 million in revenue and ¥1,268 million in operating profit required in the second half.