Revenue decline due to an increase in large-scale projects and longer pre-construction preparation periods
First written in FY2017-Q3. 6 of 16 entries say "Reframed", first in FY2017. Latest entry: FY2026.
SHO-BOND Holdings moved to the "Worse" side of this theme in 2025, 6 years after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 10 of 22 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Revenue decreased by ¥1,507 million, or 1.7%, year on year to ¥89,204 million. Sales of construction materials increased due to higher sales of seismic-retrofitting materials and coupling materials, but construction revenue from the national government and expressway companies was weak.」
The explanation has shifted from the previous focus on the ramp-up of construction for large-scale projects to revenue fluctuations driven by customer and business mix, namely weak construction revenue from the national government and expressway companies and higher materials revenue. - FY2026-H1ReframedAnnual report
「Construction revenue decreased by ¥2,772 million, or 6.7%, year on year to ¥38,832 million because revenue from the national government and expressway companies, whose opening order backlogs had declined year on year, was weak, while revenue from local governments also remained sluggish.」
In addition to the previous focus on preparation periods before commencing large-scale projects and the ramp-up of construction, the company now attributes the decline in construction revenue to customer mix and order backlog factors, namely lower opening order backlogs for the national government and expressway companies and sluggish growth in local government projects. - FY2025ReframedAnnual report
「Revenue increased by ¥5,292 million, or 6.2%, year on year to ¥90,712 million. Although revenue from expressway companies declined slightly from the previous fiscal year during a gap between large-scale projects, revenue from the national and local governments increased as the company worked through their substantial opening order backlogs.」
While expressway company projects were between large-scale projects, the company increased revenue by executing the national and local government projects in its opening order backlog. The explanation of progress in large-scale construction and revenue recognition has shifted to one based on customer mix. - FY2024AdvancedAnnual report
「Revenue increased by ¥1,494 million, or 1.8%, year on year to ¥85,419 million, as construction progressed smoothly, particularly on large-scale projects for expressway companies. Expressway companies accounted for 79% of this total, and the company steadily accumulated work on hand expected to contribute to revenue over multiple years.」
Construction of large-scale projects for expressway companies progressed, increasing revenue. Expressway company projects accounted for 79% of the order backlog, and work on hand expected to contribute to revenue over multiple years accumulated. - FY2024-Q3AdvancedAnnual report
「Construction revenue increased by ¥3,813 million, or 7.0%, year on year to ¥57,977 million, as completed construction revenue from NEXCO East Japan, which had a substantial amount of work on hand, increased, along with completed construction revenue from the national and local governments.」
In addition to NEXCO East Japan's work on hand, construction of projects for the national and local governments increased, resulting in a 7.0% year-on-year increase in construction revenue. - FY2024-Q2AdvancedAnnual report
「Construction revenue increased by ¥4,342 million, or 12.7%, year on year to ¥38,564 million as construction of large-scale projects progressed smoothly. The proportion of expressway companies in the order backlog reached 79.8%, and the company steadily accumulated work on hand expected to contribute to construction revenue from the next fiscal year onward.」
Construction revenue increased 12.7% year on year as construction of large-scale projects progressed, and work on hand expected to contribute to revenue from the next fiscal year onward also accumulated. - FY2024-Q1AdvancedAnnual report
「Construction revenue increased by ¥2,537 million, or 15.5%, year on year to ¥18,905 million, mainly because completed construction revenue from NEXCO East Japan increased substantially.」
Completed construction revenue from NEXCO East Japan increased substantially, driving a 15.5% year-on-year increase in construction revenue. Construction and revenue recognition for large-scale projects are progressing. - FY2023AdvancedAnnual report
「Completed construction revenue from large-scale projects for expressway companies, where construction progressed smoothly, was ¥49,274 million, an increase of ¥5,179 million from the previous fiscal year.」
Construction of large-scale projects for expressway companies progressed, increasing completed construction revenue to ¥49,274 million. Full-year results confirmed a transition to the stage of progressing with construction and revenue recognition after receiving orders for large-scale projects. - FY2023-Q3AdvancedAnnual report
「However, third-quarter revenue, for the period from January to March 2023, was ¥22,367 million, the highest quarterly revenue on record. Construction of long-term large-scale projects for expressway companies moved into full swing, and completed construction revenue continued to increase steadily.」
Previously, the company described a structure in which revenue was recognized after a preparation period following receipt of orders for large-scale projects. This time, it stated that construction of long-term large-scale projects for expressway companies had moved into full swing and that the projects had reached the stage of increasing completed construction revenue. Standalone third-quarter revenue was also a record high. - FY2023-Q2ReframedAnnual report
「Completed construction revenue declined year on year because revenue from expressway companies, where long-term large-scale construction projects were progressing smoothly, increased, while revenue from the national and local governments decreased.」
Revenue from expressway company projects increased as long-term large-scale construction progressed smoothly, while projects for the national and local governments declined. The explanation has shifted from the previous structure of delayed revenue recognition due to preparation periods for large-scale projects to revenue fluctuations driven by construction progress and customer mix. - FY2022RestatedAnnual report
「Expressway companies accounted for 60% of construction revenue, and the company is making steady progress in bringing in more large-scale construction projects and strengthening its construction capacity, as set out in the Medium-Term Management Plan.」
The accumulation of large-scale, multi-year construction projects has made expressway company projects the core of construction revenue, and this has been described as progress in strengthening construction capacity. - FY2021ReframedAnnual report
「Revenue increased by ¥12,474 million, or 18.5%, year on year to ¥80,065 million, as the company established an internal structure to handle large-scale construction projects ordered by expressway companies and worked to level construction revenue over the year.」
The explanation has shifted from the previous focus on delays in revenue recognition caused by preparation periods before commencing large-scale construction projects to an explanation centered on leveling construction revenue over the year through the development of an internal structure. - FY2018-Q3RestatedAnnual report
「Most construction projects received from expressway companies are large-scale, and the company has accumulated projects for which revenue will be recognized over multiple years from the following fiscal year onward.」
The company reconfirmed that large-scale, multi-year projects from expressway companies generate revenue after order receipt over the following fiscal years and that projects generating revenue over multiple years have accumulated. - FY2018-Q2RestatedAnnual report
「Large-scale projects received from expressway companies, particularly projects spanning multiple years, require time between receiving the order and recognizing revenue because of detailed design work and construction preparations. The proportion of expressway companies in revenue is expected to rise going forward and is expected to contribute gradually to revenue recognition.」
The company reconfirmed that large-scale, multi-year projects from expressway companies structurally require time between order receipt and revenue recognition because of detailed design work and construction preparations. It expects the proportion of expressway companies in revenue to rise going forward and contribute gradually to revenue recognition. - FY2017ReframedAnnual report
「The gross profit margin improved 1.6% from the same period of the previous year due to the smoothing of operations made possible by larger projects and cost reductions from thorough cost management. As a result, operating profit increased 9.2% to ¥10,160 million, ordinary profit increased 9.0% to ¥10,516 million, and profit attributable to owners of the parent increased 11.7% to ¥6,997 million.」
In the third quarter, the preparation period before commencing large-scale construction projects was identified as a factor behind the decline in revenue, while for the full year the company explained that the larger scale of construction projects contributed to leveling activity. - FY2017-Q3First statedAnnual report
「Revenue fell 3.4% year on year to ¥40,321 million, mainly because the number of large-scale construction projects requiring a preparation period before commencement increased.」
For the first time, the company explicitly identified the preparation period before commencement associated with an increase in large-scale construction projects as a factor behind the decline in revenue for the nine-month period of the current fiscal year.