Revenue led in Q1; H1 will test the ability to meet the plan

In the first quarter from April to June 2026, revenue was ¥6,684 million and operating profit was ¥923 million, up 9.7% and 9.2%, respectively, from the same period of the previous year. The FY2027 full-year forecasts are revenue of ¥28,100 million and operating profit of ¥3,100 million, resulting in first-quarter progress of 23.8% for revenue and 29.8% for operating profit. Revenue was slightly below the 25% calendar-year benchmark, while operating profit exceeded it, indicating an early start toward the full-year plan, at least in terms of profit.

The company did not revise its full-year forecast as of the first quarter, so a separate H1 company forecast has not been disclosed. If the full-year forecast is simply divided in half, the reference figures for H1 are revenue of ¥14,050 million and operating profit of ¥1,550 million. After subtracting first-quarter actual results, the amounts required in Q2 would be revenue of ¥7,366 million and operating profit of ¥627 million. However, these are mechanical benchmarks that do not take seasonality or the timing of project recognition into account, and are not official H1 forecasts.

Actual results for FY2026-H1 were revenue of ¥12,545 million and operating profit of ¥1,843 million. To exceed the previous year’s results in FY2027-H1, based on the first-quarter results, Q2 would need to generate more than ¥5,861 million in revenue and more than ¥920 million in operating profit. Compared with the 50% full-year forecast benchmark, meeting the company’s plan requires a greater build-up in revenue and profit, so both year-on-year growth in H1 and progress toward the full-year forecast must be monitored.

At the next earnings release, we will monitor whether standalone Q2 revenue and operating profit exceed the required amounts above, and how close cumulative H1 revenue of ¥14,050 million and operating profit of ¥1,550 million come to these reference benchmarks. It will be particularly important to determine whether revenue can reach 50% in H1 after starting below 25% progress, and whether the early lead in operating profit is temporary and attributable to price revisions or project mix.