FY2027 H1: assessing progress toward the plan after the 1Q upward revision

In 1Q of FY2027, consolidated revenue was ¥17,657 million, up 4.5% year on year, and operating profit was ¥433 million, up 111.3%. Ordinary profit was ¥508 million and net income attributable to owners of the parent was ¥309 million, up 94.7% and 58.8%, respectively, year on year. Operating profit increased substantially more than revenue, marking a strong start to the year with both revenue and profit growth.

The company’s forecast for the six months ending September 2026, announced together with its 1Q results, calls for revenue of ¥36,000 million, operating profit of ¥800 million, ordinary profit of ¥900 million and net income of ¥750 million. Based on 1Q results, achieving the H1 forecast would require revenue of ¥18,343 million, operating profit of ¥367 million, ordinary profit of ¥392 million and net income of ¥441 million in 2Q alone. Progress against the H1 forecast stood at 49.0% for revenue, 54.1% for operating profit, 56.4% for ordinary profit and 41.2% for net income. Revenue and operating profit are therefore progressing relatively well, but net income will require a meaningful contribution in 2Q.

The full-year forecasts were revised to revenue of ¥73,000 million, operating profit of ¥1,600 million, ordinary profit of ¥1,800 million and net income of ¥1,900 million. The annual dividend forecast was also raised from ¥45 to ¥55. However, the release does not disclose the details of the full-year forecasts before the revision or the amounts and rates of the revisions. Nor does it provide a quantified shareholder-return policy, such as a payout ratio or DOE. Accordingly, in FY2027 H1, it will be necessary to determine from H1 results and whether the full-year forecasts are maintained or revised again whether the 1Q upward revision reflects temporary quarterly factors or improved demand and profitability across the first half.