First-quarter profit is ahead of the full-year plan for lower earnings

In the first quarter from April to June 2026, revenue was ¥5,216 million, operating profit was ¥534 million, ordinary profit was ¥485 million, and profit attributable to owners of the parent was ¥326 million. Compared with the same period a year earlier, revenue increased 5.6%, operating profit 27.7%, ordinary profit 47.2%, and net income 47.1%, with profit growth outpacing the top line.

The full-year forecasts are revenue of ¥20,500 million, operating profit of ¥1,500 million, ordinary profit of ¥1,000 million, and net income of ¥600 million. First-quarter progress rates were 25.4%, 35.6%, 48.5%, and 54.3%, respectively. Ordinary profit and net income, in particular, are well above a simple one-quarter benchmark. However, the company does not disclose a quantitative breakdown of its quarterly earnings plan or seasonality, so this early progress cannot be taken as a direct indication of the likelihood of achieving the full-year forecasts.

If FY2027-H1 is viewed as a simple half-year split of the full-year forecasts, the reference levels are revenue of ¥10,250 million, operating profit of ¥750 million, ordinary profit of ¥500 million, and net income of ¥300 million. If H1 operating profit exceeds ¥750 million, the likelihood that first-quarter profit will remain ahead of plan increases. Even if it falls below that level, the possibility of achieving the full-year forecasts is not immediately lost, given the demand season and timing of expense recognition in the second half. The key point is whether the company maintains its full-year forecasts at the H1 stage or revises its expense assumptions.

For the first quarter, the company attributed revenue growth to increased use of intercity express buses, fare revisions, events and group use, travel and accommodation demand, and strong product sales. The full-year forecasts, however, had not been changed as of the first quarter. At the next earnings announcement, it will be necessary to check not only whether revenue reaches around ¥10,250 million, but also whether operating profit is at least ¥750 million, whether the operating margin has deteriorated, and whether the full-year forecasts have been revised.