FY2027 (year ending May 2027) is expected to deliver revenue and profit growth, but in FY2027-Q1 the focus will be on the pace of growth after the mid-term plan targets have been achieved.

For FY2026 (year ended May 2026), consolidated revenue was ¥12,119 million and operating profit was ¥1,509 million, up 15.7% and 31.8%, respectively, year on year. The operating margin also rose from 10.9% in the previous fiscal year to 12.5%, making it important that profit growth outpaced revenue growth, rather than the improvement being driven solely by scale.

The company had set mid-term management targets of consolidated revenue of at least ¥12 billion, consolidated operating profit of at least ¥1.2 billion and ROE of at least 8.0%, with FY2027 (year ending May 2027) as the final year. It achieved all of these targets one year ahead of schedule in FY2026. Accordingly, the key issue in FY2027-Q1 will not be whether the previous targets are achieved, but whether revenue and profit growth can continue after their achievement and whether new medium- to long-term targets will be established.

The company's FY2027 forecasts are revenue of ¥13,380 million, operating profit of ¥1,665 million, ordinary profit of ¥1,685 million and net income attributable to owners of the parent of ¥1,235 million. The operating profit forecast is 10.3% above the FY2026 result, implying an operating margin of approximately 12.4% against forecast revenue. This is broadly in line with FY2026's 12.5%, so the next results should confirm whether the margin is being maintained alongside revenue growth.

In FY2027-Q1, disclosure of standalone quarterly revenue and operating profit, revenue and profit for each of the 5 segments, and progress against the full-year forecasts will be important. Rather than mechanically using 25% of the full-year forecasts as the benchmark, it will be necessary to assess how the company explains the timing of revenue recognition in the first and second halves, taking into account acceptance dates for contracted projects and the ramp-up of large projects.