FY2027 revenue growth with lower operating profit expected; the next 1Q will be a key period for assessing the initial signs of cost pressure

In FY2026, revenue was ¥14,391 million, operating profit was ¥1,274 million, ordinary profit was ¥1,191 million, and net income attributable to owners of the parent was ¥823 million. Year on year, revenue rose 7.0%, operating profit 2.4%, ordinary profit 1.6%, and net income 20.6%, indicating that operating profit growth was limited relative to top-line growth.

The company forecasts FY2027 revenue of ¥14,500 million, operating profit of ¥1,130 million, ordinary profit of ¥1,210 million, and net income of ¥700 million. Revenue is expected to rise only 0.8% from the previous fiscal year, while operating profit is projected to decline 11.3% and net income 15.0%. Ordinary profit alone is expected to increase 1.5%, suggesting that non-operating income and losses or equity-method investment income may partly offset the decline in operating profit, although the company has not disclosed the amounts by factor for the next fiscal year.

The comparable first quarter of FY2026 reported revenue of ¥3,544 million, operating profit of ¥338 million, ordinary profit of ¥402 million, and net income attributable to owners of the parent of ¥259 million. The first point to check in the next 1Q is whether revenue and operating profit can at least maintain these levels. However, the company has not disclosed a plan showing quarterly seasonality or profit concentration, so it would not be appropriate to judge the likelihood of achieving the full-year target based simply on 25% progress.

The key points are the position of 1Q relative to the full-year operating profit forecast of ¥1,130 million and the main causes of the decline. Even if cargo volumes in the port transportation business increase, revenue growth will not translate into profit if depreciation, fuel, personnel and outsourcing costs rise by more. In the next earnings release, we will check whether the full-year forecast is maintained or revised, as well as year-on-year operating profit, the operating margin, segment profit contributions, and the factors behind the difference from the full-year net profit forecast of ¥700 million.