Operating profit is ahead of plan in Q1, while the full-year forecast remains unchanged

In Q1, from April through June 2026, revenue was ¥38,392 million, up 9.3% year on year, and operating profit was ¥3,134 million, up 14.8%. Progress toward the full-year forecasts was 24.3% for revenue, calculated as ¥38,392 million ÷ ¥158,000 million, and 34.8% for operating profit, calculated as ¥3,134 million ÷ ¥9,000 million. Given that one-quarter of the fiscal year had elapsed, revenue was broadly in line with plan, while operating profit was 10.5 percentage points further ahead than revenue.

Ordinary profit was ¥3,226 million, representing 29.9% progress toward the full-year forecast of ¥10,800 million. Quarterly net income attributable to owners of the parent was ¥2,339 million, reaching 32.0% of the full-year forecast of ¥7,300 million. Thus, based on Q1 alone, ordinary profit and net income, as well as operating profit, exceeded the simple 25% benchmark. However, the growth in ordinary profit and net income also reflects the effects of non-operating and extraordinary items, so it will be necessary to separately determine whether the same pace continues through the first half.

The Q1 operating margin was approximately 8.2%, above the 5.8% reported for FY2026. However, the timing of project revenue recognition and progress on construction-related work are seasonal, so there is no basis for applying 8.2% directly to the full year. The disclosures reviewed this time do not provide specific first-half revenue and operating profit forecasts or the levels required in the first and second halves to meet the full-year forecasts. Comparison with the full-year forecasts is therefore limited to simple progress rates.

In FY2027-H1, cumulative first-half revenue of ¥79,000 million and operating profit of ¥4,500 million, equivalent to a simple 50% of the full-year forecasts, will serve as mechanical benchmarks. Exceeding these levels would indicate solid first-half progress toward the full-year forecasts, although falling short would not by itself establish that the targets will be missed without taking seasonality into account. The key points are whether revenue growth is maintained on a cumulative first-half basis, whether the operating margin continues to improve through price revisions and efficiency gains, and whether the company revises its full-year forecasts.