Profit is already ahead of plan as of 3Q; FY2026 revenue outcome and treatment of the full-year forecast are the focus

For the 9-month period from 1 October 2025 to 30 June 2026, revenue was ¥10,797 million, operating profit was ¥1,068 million, ordinary profit was ¥1,083 million and net income attributable to owners of the parent was ¥754 million. Year on year, revenue increased 31.3%, operating profit 240.8%, ordinary profit 216.4% and net income 82.7%, with operating profit growth substantially outpacing revenue growth. Operating margin was approximately 9.9% based on a simple calculation, up approximately 6.1 percentage points from approximately 3.8% in the same period of the previous year.

The full-year forecast is revenue of ¥14,200 million, operating profit of ¥1,000 million, ordinary profit of ¥1,000 million and net income of ¥575 million. Progress against the forecast for the 9-month period was 76.0%, 106.8%, 108.3% and 131.3%, respectively, with all three profit measures already exceeding their full-year forecasts. Operating profit was ¥68 million above plan, ordinary profit ¥83 million above plan and net income ¥179 million above plan, while revenue still needs to reach ¥3,403 million in 4Q. Accordingly, the key issue in the full-year results will be whether revenue growth in areas such as transport infrastructure continues into 4Q and enables the revenue forecast to be achieved, rather than the extent to which profit exceeds plan.

Looking at the cumulative quarterly trend, revenue and operating profit were ¥3,407 million and ¥275 million, respectively, in 1Q; ¥7,882 million and ¥1,019 million in the 6-month period; and ¥10,797 million and ¥1,068 million in the 9-month period. On a simple difference between the 6-month and 9-month periods, standalone 3Q revenue was ¥2,915 million and operating profit was ¥49 million. Because the company does not disclose standalone 3-month figures in a tabular format, these figures must be interpreted with the effects of seasonality and one-off expenses in mind, but they provide a basis for assessing whether cumulative operating profit growth may have slowed in 3Q.

As of the 3Q results, there had been no revision to the latest full-year earnings forecast, and the annual dividend forecast remained unchanged at ¥18 per share. The earnings presentation also did not provide the 4Q revenue or profit levels needed to achieve the full-year forecast, the quantified risks incorporated into the forecast, or numerical assumptions for foreign exchange rates and costs. Accordingly, the FY2026 full-year results will need to be reviewed for actual revenue of ¥14,200 million, the extent to which operating profit exceeds ¥1,000 million, whether the operating margin can be maintained at around 9.9%, and the level at which the forecast for the next fiscal year is presented.