First-half operating profit reached 86.2% of the full-year plan; in Q3, the focus is on building sales momentum

Revenue for the FY2026 interim period (1 December 2025 to 31 May 2026) was ¥85,956 million, and operating profit was ¥21,214 million. Year on year, revenue increased 30.1% and operating profit increased 20.5%, with progress rates of 69.9% against the full-year revenue forecast of ¥122,986 million and approximately 86.2% against the operating profit forecast of ¥24,611 million. The fact that profit is well ahead of revenue in terms of progress against the full-year forecast will be the first point to check in the Q3 results.

Subtracting first-quarter revenue of ¥60,498 million and operating profit of ¥15,499 million gives standalone second-quarter revenue of ¥25,458 million and operating profit of ¥5,715 million. As of the interim period, ¥37,030 million of revenue and ¥3,397 million of operating profit remained to reach the full-year plan. Accordingly, whether standalone Q3 results exceed these remaining amounts will be a clear benchmark for determining whether cumulative nine-month results will reach the annual plan.

However, operating profit being ahead of plan does not mean that achievement of the full-year plan is assured. Revenue and profit may fluctuate significantly from quarter to quarter depending on the timing of property sales recognition and the composition of properties sold. In Q3, in addition to checking how much cumulative revenue has increased from ¥85,956 million and cumulative operating profit from ¥21,214 million, we will look for explanations of the number of properties sold, the composition of properties sold and the timing of recognition.

As of the interim period, the full-year earnings forecast had not been revised, remaining at ¥122,986 million in revenue and ¥24,611 million in operating profit. In the Q3 earnings summary, it will be important to see whether the company supplements the maintained forecast with the nine-month progress rates, the revenue and profit required in the remaining fourth quarter, and previously undisclosed leading indicators such as orders received and regional revenue.