Revenue is slightly behind plan, while operating profit is ahead of the full-year forecast

Cumulative revenue for the third quarter of the fiscal year ending September 2026 was ¥3,199 million, representing 71.4% progress toward the full-year forecast of ¥4,480 million. This was below the 75% benchmark the company uses for elapsed time, indicating a slight delay when revenue is viewed alone. Operating profit, meanwhile, was ¥207.5 million, reaching 90.2% of the full-year forecast of ¥230 million. The amounts still required are ¥1,281 million in revenue and ¥225 million in operating profit, meaning the profit target is substantially ahead of the revenue target.

A simple subtraction of interim operating profit of ¥360 million from cumulative third-quarter operating profit of ¥207.5 million results in standalone third-quarter operating loss of ¥152.5 million. This is a calculation based on the difference between cumulative figures and does not immediately indicate a deterioration in performance, but the effects of seasonality, the timing of project acceptance, cost recognition and early handover should be reviewed in the next earnings release. In particular, if some of the profit recorded in the first half reflected one-off timing factors, maintaining profitability in the second half will be necessary to achieve full-year operating profit of ¥230 million.

Cumulative third-quarter orders received were ¥3,705.3 million and the order backlog was ¥3,349.2 million, up 13.4% and 14.0%, respectively, from the same period a year earlier. Orders received and the order backlog are positive leading indicators for revenue, but the timing of conversion of the backlog into revenue and profit has not been disclosed. The company cites earlier handovers, orders for its core businesses and improved operating efficiency as factors behind revenue growth, but does not provide the contribution of each factor. At the full-year results, the points to review will be achievement of revenue of ¥4,480 million and operating profit of ¥230 million, the timing of backlog conversion into revenue, and the explanation for the standalone third-quarter earnings fluctuation.