H1 revenue and operating profit increased, but acceleration in H2 is needed to meet the full-year plan

Revenue in FY2026 H1 was ¥3,142.626 million, up 24.0% from ¥2,534.034 million in the same period of the previous year. Operating profit also rose to ¥375.514 million from ¥331.300 million, an increase of 13.3%. However, the full-year forecasts are ¥7,200 million in revenue and ¥1,000 million in operating profit, putting H1 progress at 43.6% for revenue and 37.6% for operating profit. Revenue is close to the simple 50% half-year benchmark, while operating profit is progressing relatively slowly against the profit plan.

On a quarterly basis, first-quarter revenue and operating profit were ¥1,632.704 million and ¥194.862 million, respectively. Based on the difference from H1 cumulative results, second-quarter revenue and operating profit were approximately ¥1,509.922 million and ¥180.652 million. On a simple comparison, both were lower in Q2 than in Q1, so higher revenue and operating profit in H1 do not by themselves indicate acceleration in H2. In light of seasonality and the timing of project recognition, it will be important to determine whether growth reaccelerated in Q3 alone.

Subtracting H1 results from the full-year forecasts leaves ¥4,057.374 million in revenue and ¥624.486 million in operating profit to be generated over the remaining 2 quarters. The simple time-apportionment benchmark for cumulative Q3 results is ¥5,400 million in revenue and ¥750 million in operating profit, and the next results announcement should be assessed against these levels. Operating profit is particularly important, as failure to reach ¥750 million cumulatively by Q3 would further increase the profit required in the final quarter.

The full-year forecasts also include ordinary profit of ¥950 million, net profit attributable to owners of the parent of ¥450 million and annual dividends of ¥0. No revisions to the earnings forecasts had been made as of H1. In FY2026-Q3, the focus will be whether the company discloses not only higher revenue and profit, but also progress by line against the full-year forecasts for revenue, operating profit, ordinary profit and net profit, as well as the timing of project recognition and its H2 cost assumptions.