First-half earnings are ahead of plan, maintaining progress toward full-year targets

Revenue for the first half, from January through June 2026, was ¥3,156 million, broadly unchanged from ¥3,157 million in the same period of the previous year. Operating profit, however, increased 26.3% to ¥426 million from ¥337 million, ordinary profit rose 25.6% to ¥432 million, and interim net income attributable to owners of the parent increased 31.4% to ¥289 million. Profit expanded without revenue growth, indicating that the central feature of these results was improved profitability rather than stronger demand.

The company’s full-year forecasts are revenue of ¥6,100 million, operating profit of ¥630 million, ordinary profit of ¥640 million, and net income attributable to owners of the parent of ¥450 million. They were not revised at the first-half results announcement. A simple calculation of first-half progress gives 51.7% for revenue, 67.6% for operating profit, 67.5% for ordinary profit, and 64.2% for net income. Since half the fiscal year had elapsed, operating profit had already exceeded two-thirds of the full-year forecast, clearly ahead of revenue.

First-quarter operating profit was ¥223 million, implying second-quarter standalone operating profit of approximately ¥203 million. The key point to verify in the third quarter is whether the first-half improvement in earnings continued into the second quarter rather than being a temporary first-quarter phenomenon. In particular, it will be important to assess whether the segment mix, product mix, and expense reductions that lifted margins in the first half are being maintained in the second half, together with the cumulative operating profit figure.

Because the third quarter represents nine months of cumulative results, setting 75% of the full-year forecast as a mechanical progress benchmark gives revenue of ¥4,575 million, operating profit of ¥472.5 million, ordinary profit of ¥480 million, and net income of ¥337.5 million as indicative checkpoints. The company’s business is subject to quarter-to-quarter fluctuations in sales, however, so falling below these levels alone would not establish that the full-year targets will be missed. The results announcement should be reviewed for any additional explanation of the basis for maintaining the full-year forecasts, the assumptions underlying a recovery in second-half revenue, and specific measures to sustain margins.