Q1 is ahead of plan on profit relative to the full-year forecast

FY2027-Q1 revenue rose 14.5% year on year to ¥11,503 million, while operating profit rose 62.8% to ¥894 million. Ordinary profit was ¥1,023 million and net profit attributable to owners of the parent was ¥738 million, representing year-on-year increases of 48.8% and 49.4%, respectively. Operating profit grew substantially faster than revenue, indicating that profitability improved through price revisions and higher productivity in the manufacturing division, rather than through a simple recovery in volume alone.

Progress against the full-year forecast was 26.7% for revenue, calculated as ¥11,503 million ÷ ¥43,000 million, and 35.1% for operating profit, calculated as ¥894 million ÷ ¥2,550 million. Compared with 25% of the fiscal year having elapsed in Q1, revenue was broadly in line with plan, while profit was ahead of plan. However, compared with revenue of ¥10,046 million and operating profit of ¥549 million in the year-earlier quarter, the results also reflect a rebound from a low base. It is therefore important to determine whether the same trend continues through the first half.

FY2026-H1 revenue was ¥19,967 million and operating profit was ¥1,122 million. In FY2027-H1, it will be necessary to confirm not only whether revenue exceeds ¥19,967 million but also whether operating profit exceeds ¥1,122 million. In particular, the possibility of reaching full-year operating profit of ¥2,550 million will depend on whether the factors that drove Q1 profit growth, including price revisions, productivity improvements and expense reductions, continue into Q2 or are offset by production cuts at automakers and higher procurement costs.

As of Q1, the company had not changed its full-year forecasts of revenue of ¥43,000 million, operating profit of ¥2,550 million, ordinary profit of ¥3,000 million and net profit attributable to owners of the parent of ¥2,100 million. However, the first-quarter results did not disclose amount-based details for orders received and order backlog, sales volume, plant operating rates, the effects of price revisions or the effects of productivity improvements. In FY2027-H1, it will be necessary to confirm whether the company adds an explanation decomposing the increase in operating profit into price, volume, costs, productivity and SG&A expenses.