FY2027 plan calls for modest revenue and profit growth, with FY2027-Q1 year-on-year improvement as the first checkpoint

FY2026 full-year results were revenue of ¥17,011 million and operating profit of ¥1,965 million. Revenue declined 6.0% year on year, while operating profit rose 1.5%, resulting in an operating margin of 11.6%. Against this backdrop, the FY2027 company plan calls for revenue of ¥17,500 million and operating profit of ¥2,050 million, representing increases of 2.9% and 4.3%, respectively. Since the planned growth in profit exceeds revenue growth, maintaining profitability will be necessary, rather than relying solely on a recovery in orders.

The next first quarter will be compared with FY2026-Q1 revenue of ¥2,944 million and operating profit of ¥175 million. FY2025-Q1 revenue was ¥3,959 million and operating profit was ¥274 million, meaning that FY2026-Q1 revenue fell by ¥1,015 million, or 25.6%, and operating profit fell by ¥99 million, or 36.1%. The extent to which FY2027-Q1 can recover from this decline will indicate whether the full-year plan’s revenue-growth assumptions are working from the early stages of the year.

However, because work completion is concentrated in the fourth quarter at オオバ, it is difficult to assess the distance from the full-year plan based solely on the absolute figures for an individual quarter. In FY2021, the fourth quarter accounted for 64.4% of full-year revenue, so it would not be appropriate to use 25% of full-year revenue as a mechanical benchmark at the first-quarter stage. The next assessment should combine year-on-year comparisons with order intake, the order backlog and the operating margin.

The operating margin implied by the FY2027 plan is approximately 11.7%, calculated as ¥2,050 million divided by ¥17,500 million, essentially unchanged from the 11.6% recorded in FY2026. Accordingly, the next earnings release should be checked not only for whether revenue exceeds the year-earlier level, but also for whether the operating margin has deteriorated from the prior-year quarter, whether the full-year forecasts of ¥17,500 million and ¥2,050 million remain unchanged, and whether the company discloses the drivers of profit improvement.