First-quarter sales are behind the full-year plan, leaving little room for the projected operating loss

Revenue in the first quarter of the fiscal year ending March 2027 was ¥612 million, representing 20.8% progress against the full-year forecast of ¥2,943 million. With 25% of the period elapsed, the shortfall is 4.2 percentage points on a simple time-period comparison. To achieve the full-year forecast, the company must generate an additional ¥2,331 million in revenue from the second quarter through the end of the fiscal year, equivalent to 79.2% of the full-year forecast.

On the earnings side, the first-quarter operating loss was ¥130 million, reaching 79.8% of the full-year projected operating loss of ¥163 million. If the full-year forecast is maintained unchanged, the total operating loss permitted over the remaining 9 months from the second quarter onward is only ¥33 million. The ordinary loss was ¥119 million, while the quarterly net loss attributable to owners of the parent was ¥121 million. These figures have already consumed 86.9% and 73.8%, respectively, of the full-year forecasts for an ordinary loss of ¥137 million and a net loss of ¥164 million.

Compared with the same period of the previous year, revenue declined 8.6% from ¥669 million to ¥612 million. Meanwhile, the operating loss narrowed by ¥15 million, from ¥145 million to ¥130 million. Actual results for the fiscal year ended March 2026 were revenue of ¥2,372 million and an operating loss of ¥825 million. The company’s forecast for the fiscal year ending March 2027 calls for revenue to increase 24.1% while reducing the operating loss to ¥163 million. In light of the first-quarter revenue decline, whether a recovery in demand can be confirmed in the first half will be the first hurdle in assessing the achievability of this full-year plan.

On a simple time-period allocation for the first half, revenue of ¥1,471.5 million and an operating loss of ¥81.5 million provide monitoring benchmarks. However, because quarterly seasonality and the timing concentration of project deliveries have not been disclosed, these are mechanical benchmarks for checking progress, not company guidance. At the next results announcement, it will be necessary to check simultaneously second-quarter standalone revenue, cumulative first-half operating profit/loss, and whether the full-year forecast is maintained or revised.