Sustaining profitability and progress toward the ¥350 million operating profit forecast

FY2026 revenue was ¥5,216 million, up 11.2% year on year. Operating profit improved from an operating loss of ¥121 million in the previous fiscal year to ¥201 million, ordinary profit was ¥155 million, and net income attributable to owners of the parent was ¥394 million. The return to operating profitability came for the first time in 4 fiscal periods. The key question is whether business reorganization, structural reforms, and reductions in selling, general and administrative expenses contributed to lowering the break-even point, rather than merely restoring revenue.

The company's FY2027 forecasts are revenue of ¥5,650 million, operating profit of ¥350 million, ordinary profit of ¥298 million, and net income of ¥292 million. Revenue is expected to increase 8.3% year on year and operating profit 73.9%, while net income is expected to decline 26.0%. The ¥350 million operating profit forecast is ¥88 million below the ¥438 million indicated in the previous medium-term plan and ¥50 million below the target of approximately ¥400 million in operating profit for the fiscal year ending June 2027.

In FY2027 Q1, the focus will be on the company's explanation of progress toward the full-year forecast, in addition to actual revenue and operating profit. The mechanical even-progress benchmarks are revenue of ¥1,412 million and operating profit of ¥87.5 million, but quarterly seasonality and the timing of large-project recognition have not been disclosed, so these figures should not be treated as forecasts. Because the company has a single segment, segment profit is not disclosed. Without Q1 disclosure of revenue by product category, gross margin, selling, general and administrative expenses, and operating cash flow, the sustainability of profitability cannot be adequately assessed.