Accelerated revenue and profit growth in the second half is needed to meet the full-year forecast

First-half revenue in FY2026 ending December was ¥4,097.811 million, up 35.5% year on year, while operating profit was ¥294.069 million, up 6.0%. Ordinary profit also remained in growth territory at ¥270.142 million, up 6.3%, while interim net income attributable to owners of the parent declined 10.9% to ¥138.891 million. Operating profit growth was slower than revenue growth, while net income declined, leaving a disparity in earnings quality.

The full-year forecast is revenue of ¥9,252 million, operating profit of ¥700 million, ordinary profit of ¥528 million and net income attributable to owners of the parent of ¥286 million. At the end of the first half, progress was 44.3%, 42.0%, 51.1% and 48.5%, respectively. Assuming the first and second halves are evenly balanced, the company needs to generate ¥5,154.189 million in revenue, ¥405.931 million in operating profit, ¥257.858 million in ordinary profit and ¥147.109 million in net income in the second half. In particular, this means generating more operating profit in the second half alone than the ¥294.069 million recorded in the first half.

Based on the difference between the previous full-year and first-half results, second-half results last year can be calculated as revenue of ¥3,411.532 million and operating profit of ¥320.570 million. The amounts required in the second half of FY2026 ending December are therefore approximately 51.1% higher for revenue and 26.6% higher for operating profit. However, インクルード株式会社 became a consolidated subsidiary on 31 March 2026, so the scope of consolidation differs from the previous second half and a simple comparison is not appropriate. Q3 should therefore distinguish the revenue contribution from the acquisition from organic growth in the existing businesses.

The first-half results presentation stated that revenue and profit exceeded plan, but did not provide sufficient post-Q3 targets or amounts by factor underpinning the full-year forecast. In the next update, we want to assess nine-month cumulative revenue and operating profit progress, standalone Q3 profit levels, profit recovery in the MWS business, and when shareholder benefit and acquisition-related costs will fall away. Even if the full-year forecast remains unchanged, it will be important to explain which businesses are expected to generate the ¥405.9 million in operating profit required over the remaining period.