Technology business recovering from a revenue decline, but repeatability in the second half is key to meeting the full-year target

For the nine months ended June 2026, consolidated revenue was ¥988.988 million and operating profit was ¥181.512 million. Of this, the Technology business generated revenue of ¥943.531 million and segment profit of ¥41.716 million, accounting for approximately 95.4% of consolidated revenue. Revenue increased 42.1% year on year, indicating that the company’s efforts to transform its business structure and incorporate subsidiaries have made a substantial contribution, at least to the top line.

At the interim stage, the Technology business had revenue of ¥602.132 million and segment profit of ¥10.432 million. The implied standalone third-quarter figures, based on the difference from the nine-month cumulative results, were revenue of ¥341.399 million and profit of ¥31.284 million. Profit margins improved from the first half into the early part of the second half, but these results include the addition of 3 subsidiaries, organisational restructuring and efficiency gains from consolidating operations. In the next earnings release, it will be important to see whether the company can separate the contribution from improved profitability of existing projects, new contributions from SES and DX consulting, and the effect of changes in the scope of consolidation.

The consolidated full-year forecast is revenue of ¥1,800 million, operating profit of ¥50 million and net income attributable to owners of the parent of ¥22 million. Nine-month revenue of ¥988.988 million represents approximately 54.9% of the full-year forecast, implying that revenue of ¥811.012 million will be required in the fourth quarter on a simple calculation. Operating profit, meanwhile, had already reached ¥181.512 million for the nine months, appearing to put the company well ahead of its profit forecast. However, this includes a reversal of share-based compensation expense, so it would be risky to assess full-year performance solely by the rate of progress toward the profit forecast.

The disclosure does not provide order intake, order backlog, the number of SES personnel deployed, revenue composition by customer, or the revenue and profit breakdown between the existing business and acquired companies. Accordingly, in the next earnings release it will be necessary to confirm not only whether fourth-quarter revenue reached the required level of ¥811.012 million, but also whether Technology business profit of ¥41.716 million was maintained excluding the reversal of one-off expenses, and whether the existing business excluding the acquired companies achieved year-on-year growth in both revenue and profit.