Progress toward the profit growth plan for the fiscal year ending May 2027 needs to be assessed in the first quarter.

For the fiscal year ended May 2026, consolidated revenue was ¥97,979 million, up 7.6% year on year, operating profit was ¥7,091 million, up 25.4%, and ordinary profit was ¥6,351 million, up 22.3%. By contrast, net income attributable to owners of the parent fell 80.3% to ¥758 million. The company's forecasts for the fiscal year ending May 2027 are revenue of ¥105,000 million, operating profit of ¥7,900 million, ordinary profit of ¥7,100 million and net income attributable to owners of the parent of ¥4,500 million. This implies net income growth of 493.6%, far greater than the 11.4% growth forecast for operating profit.

In the first quarter of the fiscal year ended May 2026, revenue was ¥22,421 million, operating profit was ¥1,190 million, ordinary profit was ¥995 million and net income attributable to owners of the parent was ¥708 million. Dividing the full-year forecasts for the fiscal year ending May 2027 evenly across the four quarters gives benchmarks of ¥26,250 million in revenue, ¥1,975 million in operating profit, ¥1,775 million in ordinary profit and ¥1,125 million in net income. However, the company has not disclosed quarterly earnings targets or seasonality, so these figures should be treated as mechanical benchmarks for tracking progress, not as quarterly targets that must be met.

Profit margins will also be monitored. The operating margin in the first quarter of the fiscal year ended May 2026 was approximately 5.3%, calculated by dividing operating profit of ¥1,190 million by revenue of ¥22,421 million. The full-year operating margin for the fiscal year ended May 2026 was 7.2%, while the forecast for the fiscal year ending May 2027 is approximately 7.5%, based on operating profit of ¥7,900 million divided by revenue of ¥105,000 million. In the first quarter, it will be important to assess whether orders for higher-value-added products, improvements to the production structure and cost-reduction initiatives are translating into an improved operating margin, rather than merely higher revenue.

The full-year forecasts for the fiscal year ending May 2027 assume that revenue, operating profit, ordinary profit and net income will all exceed the previous year's results. However, the company has not disclosed order intake, order backlog or quarterly profit targets. In the first quarter, it will be necessary to assess not only whether the full-year forecasts are maintained or revised, but also how far year-on-year revenue and profit growth has flowed through to the various profit levels. Since the company identifies US tariff policy, crude oil prices and the situation in the Middle East as risk factors, attention should also be paid to its explanation of their impact on profit margins, not only to whether the revenue forecast is maintained.