A sharp recovery in fourth-quarter profit is needed to meet the FY2026 full-year forecast

For the nine months ended May 2026, revenue was ¥6,537 million, operating profit was ¥37 million, ordinary profit was ¥100 million, and net profit attributable to owners of the parent was ¥26 million. The full-year forecast for the year ending August, rather than March, is revenue of ¥8,500 million, operating profit of ¥70 million, ordinary profit of ¥130 million, and net profit of ¥50 million. Revenue is at 76.9% of the full-year forecast and ordinary profit is also at 76.9%, while operating profit is at 52.9% and net profit at 52.0%.

On a simple run-rate basis, the fourth quarter needs to generate revenue of ¥1,963 million, operating profit of ¥33 million, ordinary profit of ¥30 million, and net profit of ¥24 million. In particular, the company must earn 47.1% of its full-year operating profit forecast of ¥70 million in the final quarter alone, making a recovery in profit margins, not merely additional revenue, a prerequisite. Cumulative operating profit declined by ¥20 million, from ¥57 million in the first half to ¥37 million for the nine months, meaning profit has already retreated on a cumulative basis.

Based on the difference between cumulative figures, third-quarter standalone revenue was approximately ¥1,995 million and operating profit was approximately negative ¥20 million. Accordingly, meeting the full-year forecast requires fourth-quarter operating profit of ¥33 million, which is not merely a normal quarterly level but would include a turnaround from the standalone third-quarter loss. The second-quarter earnings presentation did not provide standalone quarterly results or a quantitative bridge by factor, so the fourth-quarter results should be reviewed for standalone quarterly revenue and operating profit, as well as the contribution from cost reductions and order mix.

The revised full-year forecast presented on 13 April and the full-year forecast as of the third quarter are both revenue of ¥8,500 million, operating profit of ¥70 million, ordinary profit of ¥130 million, and net profit of ¥50 million. In the next earnings release, it will be necessary to assess not only whether the forecast was achieved, but also whether the operating margin reached approximately 0.82% based on the full-year forecast, or whether any earnings shortfall can be explained as temporary.