Full-year guidance was revised upward, but in FY2027-H1 the focus will be on first-half profit progress and reconfirming the assumptions

In the earnings forecast revision announced on 2 November, FY2027 revenue guidance was raised from ¥2.04 trillion to ¥2.37 trillion, while operating profit guidance was raised from ¥105.0 billion to ¥151.0 billion. Guidance for net profit attributable to owners of the parent was also increased from ¥240.0 billion to ¥300.0 billion, bringing the upward revision to the profit plan to ¥46.0 billion for operating profit and ¥60.0 billion for net profit. Operating profit was also raised by ¥16.0 billion from the ¥135.0 billion forecast as of the first quarter.

First-quarter results were revenue of ¥730.987 billion, operating profit of ¥38.516 billion, ordinary profit of ¥52.153 billion and quarterly net profit attributable to owners of the parent of ¥61.056 billion. Progress against the latest full-year operating profit forecast is approximately 25.5%, while progress for net profit is approximately 20.4%, indicating that a certain level of profit progress has been secured on the surface. However, revenue has reached approximately 30.8% of full-year guidance, meaning revenue progress is ahead of profit progress and suggesting that profitability needs to improve in the second half.

However, the first quarter includes six months, from 1 January to 30 June 2026, for 384 consolidated subsidiaries that changed their fiscal year-ends. The company does not present a standard year-on-year comparison, explaining instead that on an adjusted basis revenue increased 21.0% year on year while operating profit declined 18.8%. In FY2027-H1, it will be necessary to determine how much of the same fiscal year-end change effect remains in the cumulative figures and how revenue and operating profit performed on an existing-business basis excluding the affected companies.

At the next earnings release, it will be necessary to distinguish whether the upward revision reflects higher market conditions and increased cargo demand, or foreign exchange movements and one-off factors. In particular, important points will be whether the company discloses the profit required in the second half based on first-half results to maintain operating profit of ¥151.0 billion, the assumptions for fuel costs, depreciation and freight market conditions, and the underlying figures excluding the apparent uplift from the fiscal year-end changes.