First-quarter progress is broadly 25% of the full-year plan, but earnings sustainability needs to be confirmed in the first half

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥10,103 million, and operating profit was ¥210 million. With full-year forecasts of ¥40,880 million in revenue and ¥810 million in operating profit, first-quarter progress was 24.7% for revenue and 25.9% for operating profit. On the simple assumption that each quarter represents one-fourth of the year, both revenue and operating profit were broadly on plan.

Earnings progress is ahead of revenue progress. Ordinary profit was ¥376 million, or 43.2% of the ¥870 million full-year forecast, while profit attributable to owners of the parent was ¥483 million, or 48.3% of the ¥1,000 million forecast. However, the company has not disclosed quarterly seasonality or the allocation of earnings numerically, so the lead in progress alone cannot be used to determine whether full-year earnings will exceed forecast.

The full-year forecast was unchanged as of the first quarter. It assumes revenue of ¥40,880 million, up 2.7% from the previous year's actual result, and operating profit of ¥810 million, down 60.7% from the previous year's result. First-quarter operating profit improved to ¥210 million from ¥4 million in the same quarter of the previous year, but the low full-year profit plan reflects higher personnel expenses, other expenses and depreciation, as well as lower margins caused by surging material prices.

For FY2027-H1, ¥20,440 million in revenue, the simple 50% benchmark, and operating profit of ¥405 million will serve as reference points. These are not the company's half-year forecasts, but comparison benchmarks obtained by mechanically halving the full-year forecasts. In addition, it is necessary to confirm whether progress in ordinary profit of ¥376 million and net profit of ¥483 million is being sustained by improvements in the core transportation, real estate and construction businesses rather than by extraordinary gains and losses or temporary factors.