FY2027 Q1: Revenue and operating profit declined, but operating profit progress toward the full-year plan was strong

First-quarter revenue was ¥60,642 million and operating profit was ¥4,050 million, down from ¥67,549 million and ¥5,477 million, respectively, in the previous-year period. The operating margin also fell 1.4 percentage points, from approximately 8.1% to approximately 6.7%, indicating that operating profit contracted more than revenue. Revenue was approximately 24.0% of the full-year forecast of ¥253,000 million, while operating profit reached 40.5% of the ¥10,000 million forecast.

In FY2026-H1, the previous-year period, revenue was ¥128,560 million, operating profit was ¥5,125 million, ordinary profit was ¥5,451 million, and interim net income attributable to owners of the parent was ¥3,697 million. At the next interim results announcement, the key benchmark for assessing progress toward full-year operating profit of ¥10,000 million will be not only whether revenue recovers to this level, but also whether cumulative first-half operating profit exceeds ¥5,125 million.

Factors behind the revenue decline included a decrease in condominium units sold and a downward adjustment to gas tariffs resulting from the fuel-cost adjustment mechanism. In contrast, ordinary profit rose to ¥6,783 million, partly due to higher dividend income, and quarterly net income attributable to owners of the parent was ¥5,156 million, moving in a different direction from operating profit. No earnings forecast revision had been made as of the first quarter, and no cash flow statement had been prepared. At the interim results announcement, it will therefore be necessary to review the recovery in operating profit, the breakdown of non-operating income, and whether the full-year forecasts are maintained or revised.