A substantial build-up in profit, including in the fourth quarter, is needed to meet the full-year plan

Revenue for the first half of FY2026 was ¥2,552.4 million, down 5.4% year on year, but operating profit was ¥265 million, compared with an operating loss of ¥217 million in the same period of the previous year, marking a return to profitability. Ordinary profit was also ¥113 million, while net profit attributable to owners of the parent was ¥357 million, with both turning profitable from losses in the same period of the previous year.

For the 9 months, revenue was ¥4,103.3 million, down 5.7% year on year, operating profit was ¥408 million, ordinary profit was ¥153 million, and quarterly net profit attributable to owners of the parent was ¥350 million. Operating profit was ¥47.35 million in the same period of the previous year, so the level of profit has improved, but the recovery has accompanied a decline in revenue, meaning that a sufficient recovery in the top line cannot yet be said to have been achieved.

Simply subtracting the results from the company plan leaves ¥3,096.7 million in revenue, ¥1,492 million in operating profit, ¥1,447 million in ordinary profit and ¥850 million in net profit to be generated after the 9-month period. Operating profit progress was 21.5% and net profit progress was only 29.2%, indicating that profit generation remains weighted toward the later part of the year after 9 months. Deliveries of detached houses have a seasonal pattern, concentrated in the second and fourth quarters, making fourth-quarter deliveries and profitability the key test of whether the plan can be met.

By segment, in the first half the subdivision business generated revenue of ¥1,852.4 million and operating profit of ¥31.9 million, the contracting business generated revenue of ¥303.8 million and an operating loss of ¥6.85 million, the real estate distribution business generated revenue of ¥319.8 million and an operating loss of ¥89.52 million, and the other businesses generated revenue of ¥76.5 million and operating profit of ¥150.19 million. For the 9 months, operating profit in the subdivision business was approximately ¥9 million, the contracting business generated ¥59.13 million, the real estate distribution business recorded an operating loss of ¥45.74 million, and the other businesses generated operating profit of ¥224.57 million. The recovery in company-wide profit has therefore not spread evenly across the businesses. At the next results announcement, it will be necessary to check fourth-quarter revenue and operating profit, segment progress against plan, and whether the full-year forecast has been revised.