Allied Architects substantially revised downward its full-year earnings forecast for the fiscal year ending December 2026. Revenue is expected to decline year on year, with the company projected to swing to an operating loss and net loss.
Allied Architects revised downward its full-year consolidated earnings forecast for the fiscal year ending December 2026. Revenue after the revision is expected to be ¥2.720 billion, down 9.3% from the previous forecast and 9.0% from the previous fiscal year. Operating profit is projected to be a loss of ¥185 million, ordinary profit a loss of ¥215 million and net profit a loss of ¥550 million, all below the previous forecasts, which had called for profits.
The company will also record an extraordinary loss of ¥284 million related to the liquidation of an overseas subsidiary, and overall profitability is expected to deteriorate substantially. In the core AX business, the suspension of advertising by major customers, budget cuts and delays in new orders had an impact.
In the previous fiscal year, the company posted an operating loss of ¥188 million, an ordinary loss of ¥160 million and a net loss of ¥743 million, and is now expected to post substantial losses for the second consecutive fiscal year. The new asset AX business also lost momentum after its financing failed to materialize, forcing the company to redesign its medium-term profit plan.