Profit increased in 1Q, but FY2027-H1 is the point at which the distance to the full-year plan will be assessed

Revenue in 1Q was ¥3,333 million, operating profit was ¥132 million, ordinary profit was ¥135 million and quarterly net profit attributable to owners of the parent was ¥84 million. In the prior-year quarter, revenue was ¥3,344 million, operating profit was ¥82 million and net profit was ¥53 million. With revenue remaining almost unchanged, operating profit increased by ¥50 million and net profit by ¥31 million. The full-year forecasts remain unchanged as of the 1Q results at revenue of ¥15,100 million, operating profit of ¥1,240 million, ordinary profit of ¥1,250 million and net profit of ¥820 million.

On a simple calculation, 1Q progress against the full-year forecast was 22.1% for revenue, 10.6% for operating profit and 10.2% for net profit. Although the 60.7% year-on-year increase in operating profit stands out, profit progress against the annual plan was below revenue progress. While margins improved in 1Q, achieving the annual plan requires operating profit of ¥1,108 million over the remaining 9 months, making the timing of quarterly project deliveries and high-margin projects important.

The mechanical benchmark for reaching 50% of the full-year plan on a cumulative second-quarter basis is revenue of ¥7,550 million, operating profit of ¥620 million and net profit of ¥410 million. However, this is only a reference line that does not take seasonality or uneven project deliveries into account; it is not a half-year plan presented by the company. Actual FY2026-H1 results were revenue of ¥7,055 million, operating profit of ¥452 million and net profit of ¥294 million, so FY2027-H1 should be assessed not only against the prior-year changes but also against the quality of progress toward the full-year plan.

The 1Q supplementary materials repeated the full-year forecast figures but did not disclose progress against the forecast, the company's own assessment of the plan, the revenue and profit levels required for the remaining period or the numerical assumptions incorporated into the earnings forecast. Next time, in addition to revenue and operating profit progress, it will be necessary to confirm whether growth in solution services continues into the second half, how much of the decline in system operations and services is recovered, and whether the basis for maintaining the full-year forecast becomes more specific.