FY2027-H1 progress against the full-year plan following the upward revision

FY2027-Q1 revenue was ¥145,862 million, up 15.6% year on year, while operating profit was ¥2,890 million, up 66.8%. Ordinary profit also increased 76.6% to ¥3,160 million, whereas profit attributable to owners of the parent rose only 4.9% to ¥1,913 million. It will therefore be necessary to assess in the first half whether the improvement at the operating level is flowing through to net profit with the same strength.

Following the earnings forecast revision on 21 October, the full-year plan calls for revenue of ¥618,000 million, operating profit of ¥17,900 million, ordinary profit of ¥18,700 million and profit attributable to owners of the parent of ¥12,250 million. Q1 progress was 23.6% for revenue, 16.1% for operating profit, 16.9% for ordinary profit and 15.6% for net profit, indicating that profit progress is somewhat behind revenue progress. Full-year achievement cannot be judged solely by allocating the target evenly across quarters, but the extent to which profit progress recovers in the first half will be important.

Using half of the full-year plan as a simple benchmark, FY2027-H1 revenue of ¥309,000 million and operating profit of ¥8,950 million would provide reference points. However, the company operates in air conditioning, housing equipment, seasonal products and capital-investment projects, and is affected by shipment timing and seasonality. These are therefore merely mechanical comparison figures for measuring progress, not official first-half targets. At the next results announcement, it will be necessary to determine whether the Q1 profit increase was driven by higher volumes, earlier shipments, cost reductions or lower selling expenses.

The revised full-year operating profit target of ¥17,900 million is approximately 48.7% above FY2026 actual operating profit of ¥12,041 million. Q1 operating profit growth of 66.8% was strong, but it has not been disclosed whether the company can maintain the same margin after the first half or whether the second half incorporates slower demand or higher costs. In FY2027-H1, it will be necessary to confirm not only whether the full-year forecast is maintained, but also the assumptions for the second half based on first-half results.