TOKYO, May 26 (Pulse News Wire) – Headwaters Co.,ltd (4011.T) adjusted its forecast for the fiscal year ending December 2026 following the merger with BBD Initiative Co., Ltd. The company revised its projected operating profit and margin figures previously disclosed on May 15, 2026.
For the fiscal year ending December 2026, the company now projects an operating profit of 12.0% compared to the previous estimate of 12.0%. Operating margins are expected to reach 10.6% versus the earlier projection of 10.6%. Compared to the same period last year, the company anticipates a growth rate of 8.8%. In the first quarter ended March 2026, Headwaters reported record sales and gross profits across all segments. Revenue increased significantly due to higher pricing in enterprise AI solutions and expanded project implementation in AI workflow engineering.
However, data and AI engine revenue will begin reporting from the second quarter onwards. The company also outlined its strategic goals for the upcoming fiscal year, targeting substantial revenue expansion and laying the groundwork for PMI initiatives. Key performance indicators include achieving a year-over-year sales growth exceeding 219.4% and maintaining a net income target of ¥8.560 billion. Additionally, Headwaters plans to increase its workforce by 100 employees while keeping voluntary attrition below 10%. Looking ahead, Headwaters expects continued profitability despite anticipated derivative valuation losses and amortization expenses.
The firm remains optimistic about reaching its highest-ever operating profit amid ongoing investment in strategic growth areas.
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