First-quarter progress toward the full-year plan was broadly on track, but H1 will show whether profit builds as planned

Revenue for the first quarter of the fiscal year ending March 2027 was ¥102,827 million, up 5.8% from ¥97,219 million in the same period of the previous year. Operating profit was ¥1,600 million, up 10.3% from ¥1,451 million, ordinary profit was ¥1,849 million, up 13.5%, and net profit attributable to owners of the parent was ¥1,119 million, up 25.2%. Progress against the full-year forecasts was 25.3% for revenue, 24.2% for operating profit, 26.4% for ordinary profit and 26.6% for net profit. Profit items had therefore reached around one-quarter of their full-year forecasts, broadly in line with revenue, as of the first quarter.

The full-year forecasts are ¥407,000 million in revenue, ¥6,600 million in operating profit, ¥7,000 million in ordinary profit and ¥4,200 million in net profit. None had been revised as of the first quarter. On a mechanical basis that does not take seasonality or market fluctuations in housing materials into account, the starting points for comparison are H1 revenue of ¥203,500 million, operating profit of ¥3,300 million, ordinary profit of ¥3,500 million and net profit of ¥2,100 million. However, the company has not disclosed quarterly seasonality or numerical assumptions for second-half profit. The 50% benchmark should therefore be treated as a practical measure of distance from the plan, rather than as the company’s formal target.

The company attributed the first quarter’s increases in revenue and profit mainly to securing sales volume through new customer development, expanding sales of higher-value-added products, appropriate inventory management and stable supply. It has not disclosed the monetary impact of individual factors, sales volumes, unit prices or second-half profit assumptions. In FY2027-H1, the focus will be not only on whether revenue approaches 50%, but also on whether operating profit builds to around ¥3,300 million and whether profit is weighted toward the second half, including the background to the full-year ordinary profit forecast, which is 2.1% below the previous year.