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Forum Engineering, Ordinary Profit Forecast for the Fiscal Year Revised Downward by 11%
7088 Forum Engineering Inc. 【J-GAAP】
Earnings ReportForum Engineering Inc. <7088> [TSE Prime] announced its financial results after the market closed on February 5th (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2026 (April to December) increased 4.0% from the same period last year, reaching 3.61 billion yen.
However, the full-year forecast for consolidated ordinary profit has decreased 11.1%, from the previous forecast of 5.03 billion yen to 4.47 billion yen (compared to 4.28 billion yen in the previous period), leading to a reduction in the profit growth rate from 17.5% to 4.5%.
Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the October to March period (second half) has decreased 21.8%, from the previous forecast of 2.56 billion yen to 2.00 billion yen (compared to 2.21 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 9.6% decrease in profit.
In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit decreased to 1.14 billion yen, an 18.7% decrease compared to the same period last year. However, the operating profit margin rose from 15.3% in the same period last year to 16.1%.
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Actual Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Progress Rate vs. First Half | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Apr - Dec, 2023 | 23,492 | 2,422 | 2,428 | 1,632 | 31.6 | 80.5 | Feb 9, 2024 | J-GAAP |
| Apr - Dec, 2024 | 26,052 | 3,417 | 3,479 | 2,330 | 44.5 | 81.2 | Feb 7, 2025 | J-GAAP |
| Apr - Dec, 2025 | 28,155 | 3,979 | 3,617 | 2,417 | 45.9 | 80.8 | Feb 5, 2026 | J-GAAP |
| YoY | +8.1% | +16.4% | +4.0% | +3.7% | +3.0% |
Guidance Update
Second Half Update
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Oct - Mar, 2025 Prev | 19,720 | 2,574 | 2,567 | 1,737 | 32.7 | 0 | Nov 10, 2025 | J-GAAP |
| Oct - Mar, 2025 New | 19,200 | 2,574 | 2,007 | 1,327 | 25.0 | 0 | Feb 5, 2026 | J-GAAP |
| Revision Rate | -2.6% | 0.0% | -21.8% | -23.6% | -23.6% |
Full Year Update
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Mar, 2026 Prev | 38,200 | 5,000 | 5,035 | 3,400 | 64.0 | 0 | Nov 10, 2025 | J-GAAP |
| Mar, 2026 New | 37,680 | 5,000 | 4,475 | 2,990 | 56.3 | 0 | Feb 5, 2026 | J-GAAP |
| Revision Rate | -1.4% | 0.0% | -11.1% | -12.1% | -12.1% |
Current Period Guidance
Second Half Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Oct - Mar, 2024 | 17,733 | 2,173 | 2,219 | 1,506 | 28.8 | 32 | May 14, 2025 | J-GAAP |
| Oct - Mar, 2025 Guidance | 19,200 | 2,574 | 2,007 | 1,327 | 25.0 | 0 | Feb 5, 2026 | J-GAAP |
| YoY | +8.3% | +18.5% | -9.6% | -11.9% | -13.2% |
Current Period Guidance
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Mar, 2024 | 31,279 | 3,029 | 3,017 | 2,039 | 39.4 | 37.50 | May 14, 2024 | J-GAAP |
| Mar, 2025 | 34,688 | 4,201 | 4,284 | 2,884 | 55.1 | 53 | May 14, 2025 | J-GAAP |
| Mar, 2026 Guidance | 37,680 | 5,000 | 4,475 | 2,990 | 56.3 | 0 | Feb 5, 2026 | J-GAAP |
| YoY | +8.6% | +19.0% | +4.5% | +3.7% | +2.2% |
Quarterly Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Operating Profit Margin | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Oct - Dec, 2024 | 9,097 | 1,389 | 1,414 | 952 | 18.2 | 15.3 | Feb 7, 2025 | J-GAAP |
| Jan - Mar, 2025 | 8,636 | 784 | 805 | 554 | 10.6 | 9.1 | May 14, 2025 | J-GAAP |
| Apr - Jun, 2025 | 9,228 | 1,185 | 1,203 | 810 | 15.4 | 12.8 | Aug 8, 2025 | J-GAAP |
| Jul - Sep, 2025 | 9,252 | 1,241 | 1,265 | 853 | 16.2 | 13.4 | Nov 10, 2025 | J-GAAP |
| Oct - Dec, 2025 | 9,675 | 1,553 | 1,149 | 754 | 14.3 | 16.1 | Feb 5, 2026 | J-GAAP |
| YoY | +6.4% | +11.8% | -18.7% | -20.8% | -21.3% |
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