FY2027-Q1 revenue is ahead of schedule, while operating profit is slightly behind the full-year plan

FY2027-Q1 revenue was ¥6,683 million, up 34.8% from ¥4,956 million in the same quarter of the previous year. Operating profit was ¥206 million, up 202.8% from ¥68 million, while ordinary profit was ¥289 million and net income attributable to owners of the parent was ¥185 million. All major profit items improved year on year, marking a start to the fiscal year featuring higher revenue and a substantial increase in profit.

Progress against the full-year forecasts was 27.2% for revenue, calculated as ¥6,683 million ÷ ¥24,600 million; 20.6% for operating profit, calculated as ¥206 million ÷ ¥1,000 million; 26.3% for ordinary profit, calculated as ¥289 million ÷ ¥1,100 million; and 27.2% for net income, calculated as ¥185 million ÷ ¥680 million. Revenue, ordinary profit and net income exceeded the simple 25% first-quarter benchmark, but operating profit fell short, indicating that revenue growth is not translating directly into operating profit progress.

If a simple half-year run-rate is assumed for FY2027-H1, the reference levels are revenue of ¥12.3 billion, operating profit of ¥500 million, ordinary profit of ¥550 million and net income of ¥340 million. For operating profit in particular, it will be important to see whether the ¥206 million recorded in Q1 builds to ¥500 million on a cumulative Q2 basis. The Q1 operating margin was approximately 3.1%, below the approximately 4.1% margin implied by the full-year forecast. Accordingly, H1 needs to be assessed not only for revenue scale but also for margin improvement driven by project profitability and segment mix.

As of Q1, the full-year forecasts remain revenue of ¥24.6 billion, operating profit of ¥1 billion, ordinary profit of ¥1.1 billion and net income of ¥680 million. At the next earnings release, it will be important to determine whether Q1's high revenue progress resulted from a one-off large project or from an order and revenue base that will continue into Q2, together with whether the full-year forecasts are revised.