FY2027 plan calls for revenue growth, but profit growth is expected to remain modest

FY2026 revenue was ¥4,306 million and operating profit was ¥489 million, representing increases of 7.0% and 27.2%, respectively, from the previous fiscal year. Revenue increased as orders expanded in the reliability evaluation and precision machining businesses, while operating profit benefited from higher revenue and an improved margin. By contrast, the FY2027 company plan calls for revenue of ¥4,600 million, operating profit of ¥500 million, ordinary profit of ¥514 million and net profit of ¥395 million.

The FY2027 plan calls for revenue growth of 6.8% and operating profit growth of just 2.1%. Compared with the 11.4% operating margin recorded in FY2026, the FY2027 planned operating margin is approximately 10.9%, calculated as ¥500 million ÷ ¥4,600 million, implying a decline of approximately 0.5 percentage points on a simple calculation. Even if revenue continues to grow, it will be necessary to assess whether research and development expenses, personnel expenses, depreciation and amortization, and costs related to strengthening the sales structure are expected to constrain profit growth.

The earnings forecast disclosed this time is on a full-year basis and does not provide a standalone FY2027-Q1 revenue or operating profit target, or quarterly progress benchmarks against the full-year plan. FY2026-Q1, the comparison period, recorded revenue of ¥980 million and operating profit of ¥82 million. The next results will therefore be assessed against these figures to test the sustainability of higher revenue and profit and the quarterly profit margin.

If revenue grows while operating profit remains at around the year-earlier level, the improvement in profitability required in the second half to achieve FY2027 full-year operating profit of ¥500 million will be greater. In the next results, in addition to whether the full-year forecast is revised, we will check the Q1 operating margin, changes in research and development and personnel expenses, and the profit contributions of the reliability evaluation and precision machining businesses.