Can the revised full-year operating profit plan be maintained through the first half?

First-quarter revenue for the fiscal year ending March 2027 was ¥150,621 million, operating profit was ¥6,059 million, ordinary profit was ¥6,664 million, and net profit attributable to owners of the parent was ¥4,573 million. Year on year, revenue increased 6.7%, operating profit 50.6%, ordinary profit 49.1%, and net profit 55.8%, with profit growth far outpacing revenue growth.

In the first-quarter earnings release, the full-year operating profit forecast for the fiscal year ending March 2027 was revised upward by ¥2,190 million, from ¥15,700 million at the start of the fiscal year to ¥17,890 million. The first-half forecasts are revenue of ¥283,130 million, operating profit of ¥9,520 million, ordinary profit of ¥10,410 million, and net profit of ¥6,480 million. After deducting first-quarter results, the second quarter alone will need to generate revenue of ¥132,509 million, operating profit of ¥3,461 million, ordinary profit of ¥3,746 million, and net profit of ¥1,907 million.

First-quarter progress against the full-year forecasts was 24.1% for revenue, compared with 33.9% for operating profit, 34.1% for ordinary profit, and 38.0% for net profit. Since profit progress is ahead of revenue progress, first-quarter profitability may have been higher than simple seasonality would suggest. Even if the full-year forecasts are maintained, achieving the first-half forecasts would leave the company needing to generate ¥8,370 million of operating profit and ¥5,570 million of net profit in the second half. Full-year achievement is therefore not determined by first-half results alone.

At the next earnings release, we will check whether cumulative first-half revenue, operating profit, ordinary profit, and net profit reached ¥283,130 million, ¥9,520 million, ¥10,410 million, and ¥6,480 million, respectively. In particular, if second-quarter operating profit falls below ¥3,461 million, we will examine the segment-specific drivers of change and whether the full-year forecast was revised, to determine whether the energy business's high profitability was temporary or can be offset by growth drivers in the second half.