Revenue is close to plan, but operating profit is lagging

Revenue for April through June 2026 was ¥59,863 million and operating profit was ¥1,661 million. Revenue increased 7.5% from ¥55,679 million in the same period of the previous year, while operating profit declined 1.7% from ¥1,689 million. Progress toward the full-year revenue forecast of ¥250,000 million was approximately 23.9%, close to the 25% implied by 3 months having elapsed, but progress toward the operating profit forecast of ¥8,900 million was only approximately 18.7%. Ordinary profit was ¥1,673 million and net income attributable to owners of the parent was ¥1,012 million, down 6.9% and 15.1% year on year, respectively.

The FY2027 full-year forecasts are revenue of ¥250,000 million, operating profit of ¥8,900 million, ordinary profit of ¥9,000 million and net income attributable to owners of the parent of ¥5,800 million. If 50% of the full-year forecast is used as a simple H1 benchmark based on first-quarter actual results, the reference points are revenue of ¥125,000 million and operating profit of ¥4,450 million. On this basis, standalone second-quarter revenue of ¥65,137 million and operating profit of ¥2,789 million would be required. These are not the company’s disclosed H1 targets, but mechanical benchmarks based on an even allocation of the full-year forecasts.

In terms of margins, the operating margin implied by the FY2027 full-year forecast is approximately 3.6%, calculated by dividing operating profit of ¥8,900 million by revenue of ¥250,000 million, compared with 3.1% in the fiscal year ending March 2026. The forecast operating profit growth rate of 22.4% is high relative to the projected 7.7% revenue growth rate, implying an improvement of approximately 0.5 percentage points in the operating margin toward the second half. The first-quarter summary financial statements did not provide an H1-specific earnings forecast or a profit bridge to operating profit of ¥8,900 million. The next release should therefore be checked for additional support for maintaining or revising the full-year forecast and for the assumed margin improvement, alongside H1 results.