Can the Q1 upside be carried through to the first-half and full-year targets?

For the first quarter of the fiscal year ending March 2027, revenue was ¥24,136 million, operating profit was ¥5,598 million, ordinary profit was ¥5,580 million, and net profit attributable to owners of the parent was ¥3,548 million. Year on year, revenue rose 20.6%, operating profit 31.4%, ordinary profit 30.7%, and net profit 22.1%, with both the top line and profits expanding. The earnings presentation stated that revenue and operating profit were progressing ahead of the company’s plan.

Progress against the full-year forecasts was 25.7% for revenue, 23.0% for operating profit, 24.2% for ordinary profit, 21.6% for net profit, and 23.7% for EBITDA. Revenue was 0.7 percentage points above the simple one-quarter benchmark, while operating profit was 2.0 percentage points below it, and net profit showed even weaker progress. Rather than judging full-year achievement solely on the basis of the Q1 upside, it will be necessary to see how far profit progress improves in the cumulative second quarter.

If half of the annual plan is used simply as a first-half benchmark, the figures as of FY2027-H1 would be revenue of ¥46,950 million, operating profit of ¥12,150 million, and EBITDA of ¥18,550 million. However, these are not company-disclosed first-half forecasts, but benchmarks calculated mechanically from the full-year forecasts. At the next earnings announcement, it will be important to see how far first-half results are above or below these levels and whether the company provides the revenue and operating profit amounts required in the second half.

The full-year forecasts are revenue of ¥93,900 million, operating profit of ¥24,300 million, ordinary profit of ¥23,100 million, and net profit of ¥16,400 million, and had not been revised as of Q1. In FY2027-H1, we will assess whether Scarab Sacre’s full-year contribution, expanded acceptance of waste and contaminated soil, and the launch of new facilities are continuing as originally planned, and determine whether there is scope for an upward revision to the full-year forecasts or whether they will be maintained on the assumption of higher costs.