Q1 FY2027 is broadly on track against the full-year plan, but earnings sustainability in the first half will be the focus

Revenue for Q1 FY2027 was ¥3,753 million, up 47.2% year on year. Operating profit was ¥121 million, ordinary profit was ¥119 million, and net profit attributable to owners of the parent was ¥65 million, with all three turning profitable from losses in the same quarter of the previous year. The full-year forecasts are revenue of ¥15,300 million and operating profit of ¥450 million. Progress at the Q1 stage was therefore 24.5% for revenue and 26.9% for operating profit, meaning that profit progress exceeded revenue progress compared with a simple even quarterly allocation.

FY2026 results were revenue of ¥12,600.874 million and operating profit of ¥176.089 million. Against this base, the FY2027 plan targets a 21.4% increase in revenue and a 155.6% increase in operating profit, setting a higher hurdle for profit growth than for revenue growth. The return to profitability in Q1 is encouraging, but ¥329 million of the ¥450 million full-year profit forecast must still be generated in Q2-Q4, so it is too early to judge full-year achievement based solely on the Q1 improvement.

The Q1 disclosure showed revenue of ¥3,278.669 million from the Housing Equipment DX business and ¥483.148 million from the Solutions business, but did not disclose orders received, order backlog, regional revenue or quarterly operating cash flow. In addition, no quarterly consolidated cash flow statement was prepared for Q1, so it is not possible to confirm whether the return to profitability translated into working-capital collection or cash generation.

For H1 FY2027, the initial reference points will be revenue of ¥7,650 million and operating profit of ¥225 million, based on a mechanical 50% allocation. However, if company materials indicate seasonality or a concentration of earnings in the second half, the simple 50% threshold should not be treated as the probability of achieving the full-year plan. In Q2, advertising and personnel expenses in the Housing Equipment DX business, the Solutions business's earnings, operating cash flow and any revision to the full-year forecasts will need to be reviewed together.