Q1 revenue and operating profit rose, but full-year operating profit is lagging revenue

Revenue in the first quarter of the fiscal year ending March 2027 was ¥43,378 million, operating profit was ¥427 million, ordinary profit was ¥803 million, and net income attributable to owners of the parent was ¥703 million. Year on year, revenue rose 11.7%, operating profit 78.7%, ordinary profit 32.5%, and net income 35.7%, representing a strong start on the surface.

However, the distance from the full-year forecasts warrants attention. Q1 revenue progress against the full-year forecast of ¥180,000 million was approximately 24.1%, broadly in line with the 25% of the fiscal year that had elapsed. Operating profit, by contrast, was approximately 11.9% of the ¥3,600 million full-year forecast, ordinary profit was approximately 17.8% of the ¥4,500 million forecast, and net income was approximately 19.0% of the ¥3,700 million forecast. On a simple calculation, the company will need to generate an additional ¥3,173 million in operating profit from Q2 onward to meet its full-year operating profit forecast.

In FY2026-H1, revenue was ¥81,905 million and operating profit was ¥1,131 million. In the upcoming interim results, it will be important to see not only whether revenue continues to grow year on year, but also whether the profit improvement shown in Q1 continues into Q2 and lifts first-half operating profit above the prior-year level. The company has left its full-year forecasts unchanged, so key points to assess will be whether strong revenue is translating into profit growth through high-margin projects and price pass-through, or whether the plan assumes a second-half concentration of earnings.