1Q progress toward the full-year plan is broadly on a straight-line pace, but sustainability needs to be confirmed in H1

In 1Q, covering April to June 2026, revenue was ¥9,793 million and operating profit was ¥495 million. The full-year forecasts are revenue of ¥39,000 million and operating profit of ¥2,000 million, putting 1Q progress at 25.1% and 24.8%, respectively. Accordingly, based solely on revenue and operating profit, there is no significant lag against a simple one-quarter benchmark of 25%.

However, the FY2027-H1 benchmarks of ¥19,500 million in revenue and ¥1,000 million in operating profit are simply half of the full-year forecasts and are not half-year targets explicitly set by the company. Since seasonality and the timing of revenue recognition for large projects have not been disclosed, falling below these levels alone would not justify concluding that the full-year targets will be missed. Conversely, exceeding them would support the view that the revenue and profit growth pace seen from 1Q is being maintained.

By profit level, ordinary profit of ¥725 million reached 29.0% of the ¥2,500 million full-year forecast, while net profit attributable to owners of the parent of ¥362 million was only 24.1% of the ¥1,500 million forecast. As profit below operating profit declined year on year, H1 should be monitored not only for progress in revenue and operating profit but also for whether ordinary profit and net profit approach the simple 50% benchmarks of ¥1,250 million and ¥750 million, respectively.

The company has not changed its full-year earnings forecasts as of 1Q. It cited an expanded lineup of storage products, higher sales per housing unit, sales to the renovation market, orders for large projects and demand at Jubeer Co. as drivers of revenue growth, while identifying the weaker yen, material and energy prices, logistics, raw-material procurement and the European economy as risks. In the H1 results, we will assess whether these factors are temporary and merely supporting progress toward revenue of around ¥19,500 million, or whether they will continue to support the ¥39,000 million full-year forecast.