Worth reading
77Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
1040
¥100 million (increase in the fiscal 2028 revenue target from fiscal 2025 actual revenue)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.1%
基準 2,025Target2,028Hundreds of millions of yen
Operating profit+0.1%
基準 2,025Target2,028Hundreds of millions of yen
ROE+3.0pt
基準 2,025Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Operating profit marginNot disclosed → 7.0% (fiscal 2028 plan)
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planRevenue of ¥415.0 billion, operating profit of ¥25.0 billion, ROE of 10.0%, equity ratio of 30.0%, D/E ratio of 1.5x → Revenue of ¥396.0 billion, operating profit of ¥28.0 billion, ROE of 13.1%, equity ratio of 28.4%, D/E ratio of 1.19x（Revenue down approximately 4.6%, operating profit up 12.0%）-4.6%Calculated from the two disclosed figures
Total investment planFiscal 2026 to fiscal 2035: net investment of approximately ¥300.0 billion. Fiscal 2026 to fiscal 2028: cumulative investment of ¥166.0 billion over the three-year period, including approximately ¥150.0 billion in growth investment and M&A under cash allocation
Investment amount by sectorField Growth Areas / Amount ¥20 billion, Field GX and urban development / Amount ¥30 billion, Field Urban Development / Amount ¥100.0 billion (net ¥0), Field Talent Development / Amount ¥6 billion, Field Technology development, DX and AI / Amount ¥10 billion
Statements about the use of capital
Payout ratio / DOE policyContinue stable shareholder returns at a DOE of approximately 5% from fiscal 2026 through fiscal 2028The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of shareholders’ equity: 7% to 8%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Create new earnings foundations through proactive investment and M&A
02Develop systems that promote the recruitment, development and active participation of human resources
03Improve company-wide efficiency through DX
04Transform the organization into an efficient structure through AI
05Focus on projects with growth potential and strong competitive advantages
06Advance technology development and initiatives involving contracting methods in growth areas
07Strengthen human resources and organizational capabilities
08Focus on market growth areas and fields with competitive advantages
09Recruit and develop human resources
10Productivity improvement
11Improve and stabilize earnings
12Portfolio Restructuring
13Improve profit margins and profitability
14Create construction demand overseas by collaborating with environmental and urban development businesses
15Further expand business areas and scale
16Improve earnings power, inflation resilience and capital efficiency by replacing assets with higher-yielding assets
17Create business opportunities overseas and in new fields
18Acquire business development skills
19Support the growth of diverse human resources and improve engagement
20Establish a lean, highly productive organization
21Promote the formation of a decarbonized society
22Respect human rights throughout the supply chain
23Ensure thorough compliance and prevent corruption
Plan assumptionsThe domestic construction market is expected to expand through around 2030, driven by demand for national resilience, maintenance and repairs, and then stagnate or contract after 2030 as a result of population decline and lower demand for new construction. The rate of personnel capacity created through the use of AI is based on the headcount at the beginning of fiscal 2026. The target of 60,000 regions and communities in fiscal 2050 is based on an estimate that the number in fiscal 2050 will be 1.5 times the fiscal 2024 level on an annual basis.
Segment targetSegment Civil engineering / Net Sales ¥152.0 billion / Operating profit ¥12.3 billion / Operating profit margin 8.1%, Segment Construction / Net Sales ¥251.0 billion / Operating profit ¥16.9 billion / Operating profit margin 6.7%, Segment International / Net Sales ¥37.5 billion / Operating profit ¥100 million / Operating profit margin 0.2%, Segment Environmental and urban development / Net Sales ¥59.5 billion / Operating profit ¥5.8 billion / Operating profit margin 9.7%, Segment Companywide / Net Sales ¥500.0 billion / Operating profit ¥35.0 billion / Operating profit margin 7.0%
Non-financial targetsIndicator Cumulative number of regions and communities to which the company provides value / Target value 60,000 in total / Timing FY2050, Indicator Renewable energy generation / Target value 60GWh / Timing FY2028, Indicator Personnel capacity created in administrative functions through the use of AI / Target value 20% of the fiscal 2026 opening headcount / Timing FY2028, Indicator Personnel capacity created in administrative functions through the use of AI / Target value 50% of the fiscal 2026 opening headcount / Timing FY2035, Indicator Improving on-site productivity / Target value 10% versus fiscal 2024 / Timing FY2028, Indicator Employee engagement score / Target value 3.80 / Timing FY2028, Indicator Employee engagement score / Target value At least 4.00 / Timing FY2035, Indicator Output per employee / Target value 1.11 times fiscal 2024 / Timing FY2028, Indicator Output per employee / Target value 1.38 times fiscal 2024 / Timing FY2035, Indicator Commercial application of technologies that create new value / Target value 6 entries / Timing FY2028, Indicator Commercial application of technologies that create new value / Target value 20 cases / Timing FY2035, Indicator Percentage of female managers among all managers / Target value 3 times fiscal 2025 / Timing By fiscal 2030, Indicator Completion rate for compliance training / Target value 100% / Timing FY2028, Indicator Serious compliance violations / Target value 0 entries / Timing FY2028, Indicator Selection of management personnel for the next management structure / Target value 4 to 8 people / Timing By fiscal 2029, Indicator Percentage of cross-shareholdings relative to consolidated net assets / Target value Less than 15% / Timing FY2028
Risks identified by the company
Stagnation or contraction of the domestic construction market after 2030
Decline in the construction workforce and shortage of workers due to population decline and aging
Higher material prices
Worsening labor shortages
Regulations and requirements related to overtime-work limits and work-style reform
Fiscal difficulties faced by national and local governments
Increasingly severe natural disasters
Intense competition in overseas markets
Declining overseas demand as Japanese companies return to Japan
Difficulty ensuring the feasibility of new development projects due to soaring construction costs
Difficulty acquiring new properties as a result of rising real estate markets
Reason for revision or withdrawal
In response to aging infrastructure, increasingly severe natural disasters, population decline and aging, the company reassessed the future state it seeks to achieve, its role and the value it provides. In anticipation of increasing uncertainty in the domestic construction market after 2030, it will expand its business areas and earnings sources by further expanding its core businesses and investing in growth areas.
| Item | Details |
|---|---|
| Plan name | “西松-Vision 2035” and “Medium-Term Management Plan 2028” |
| Plan period | Medium-Term Management Plan 2028: fiscal 2026 to fiscal 2028; long-term vision: through fiscal 2035 |
| Progress against the plan | Formulated |
| Sales Target | ¥396.0 billion (fiscal 2025 actual) → ¥500.0 billion (fiscal 2028 plan)（Approximately 26.3% increase） |
| Operating profit target | ¥28.0 billion (fiscal 2025 actual) → ¥35.0 billion (fiscal 2028 plan)（Up 25.0%） |
| Operating profit margin target | Not disclosed → 7.0% (fiscal 2028 plan) |
| ROE target | 13.1% (fiscal 2025 actual) → Approximately 11% (fiscal 2028 plan)（Approximately 16.0% decrease） |
| Payout ratio / DOE policy | Continue stable shareholder returns at a DOE of approximately 5% from fiscal 2026 through fiscal 2028 |
| Cost of capital | Cost of shareholders’ equity: 7% to 8% |
| Total investment plan | Fiscal 2026 to fiscal 2035: net investment of approximately ¥300.0 billion. Fiscal 2026 to fiscal 2028: cumulative investment of ¥166.0 billion over the three-year period, including approximately ¥150.0 billion in growth investment and M&A under cash allocation |
| Investment amount by sector | Field Growth Areas / Amount ¥20 billion, Field GX and urban development / Amount ¥30 billion, Field Urban Development / Amount ¥100.0 billion (net ¥0), Field Talent Development / Amount ¥6 billion, Field Technology development, DX and AI / Amount ¥10 billion |
| Segment target | Segment Civil engineering / Net Sales ¥152.0 billion / Operating profit ¥12.3 billion / Operating profit margin 8.1%, Segment Construction / Net Sales ¥251.0 billion / Operating profit ¥16.9 billion / Operating profit margin 6.7%, Segment International / Net Sales ¥37.5 billion / Operating profit ¥100 million / Operating profit margin 0.2%, Segment Environmental and urban development / Net Sales ¥59.5 billion / Operating profit ¥5.8 billion / Operating profit margin 9.7%, Segment Companywide / Net Sales ¥500.0 billion / Operating profit ¥35.0 billion / Operating profit margin 7.0% |
| Non-financial targets | Indicator Cumulative number of regions and communities to which the company provides value / Target value 60,000 in total / Timing FY2050, Indicator Renewable energy generation / Target value 60GWh / Timing FY2028, Indicator Personnel capacity created in administrative functions through the use of AI / Target value 20% of the fiscal 2026 opening headcount / Timing FY2028, Indicator Personnel capacity created in administrative functions through the use of AI / Target value 50% of the fiscal 2026 opening headcount / Timing FY2035, Indicator Improving on-site productivity / Target value 10% versus fiscal 2024 / Timing FY2028, Indicator Employee engagement score / Target value 3.80 / Timing FY2028, Indicator Employee engagement score / Target value At least 4.00 / Timing FY2035, Indicator Output per employee / Target value 1.11 times fiscal 2024 / Timing FY2028, Indicator Output per employee / Target value 1.38 times fiscal 2024 / Timing FY2035, Indicator Commercial application of technologies that create new value / Target value 6 entries / Timing FY2028, Indicator Commercial application of technologies that create new value / Target value 20 cases / Timing FY2035, Indicator Percentage of female managers among all managers / Target value 3 times fiscal 2025 / Timing By fiscal 2030, Indicator Completion rate for compliance training / Target value 100% / Timing FY2028, Indicator Serious compliance violations / Target value 0 entries / Timing FY2028, Indicator Selection of management personnel for the next management structure / Target value 4 to 8 people / Timing By fiscal 2029, Indicator Percentage of cross-shareholdings relative to consolidated net assets / Target value Less than 15% / Timing FY2028 |
| Plan assumptions | The domestic construction market is expected to expand through around 2030, driven by demand for national resilience, maintenance and repairs, and then stagnate or contract after 2030 as a result of population decline and lower demand for new construction. The rate of personnel capacity created through the use of AI is based on the headcount at the beginning of fiscal 2026. The target of 60,000 regions and communities in fiscal 2050 is based on an estimate that the number in fiscal 2050 will be 1.5 times the fiscal 2024 level on an annual basis. |
| Key initiatives | Create new earnings foundations through proactive investment and M&A, Develop systems that promote the recruitment, development and active participation of human resources, Improve company-wide efficiency through DX, Transform the organization into an efficient structure through AI, Focus on projects with growth potential and strong competitive advantages, Advance technology development and initiatives involving contracting methods in growth areas, Strengthen human resources and organizational capabilities, Focus on market growth areas and fields with competitive advantages, Recruit and develop human resources, Productivity improvement, Improve and stabilize earnings, Portfolio Restructuring, Improve profit margins and profitability, Create construction demand overseas by collaborating with environmental and urban development businesses, Further expand business areas and scale, Improve earnings power, inflation resilience and capital efficiency by replacing assets with higher-yielding assets, Create business opportunities overseas and in new fields, Acquire business development skills, Support the growth of diverse human resources and improve engagement, Establish a lean, highly productive organization, Promote the formation of a decarbonized society, Respect human rights throughout the supply chain, Ensure thorough compliance and prevent corruption |
| Results under the previous plan | Revenue of ¥415.0 billion, operating profit of ¥25.0 billion, ROE of 10.0%, equity ratio of 30.0%, D/E ratio of 1.5x → Revenue of ¥396.0 billion, operating profit of ¥28.0 billion, ROE of 13.1%, equity ratio of 28.4%, D/E ratio of 1.19x（Revenue down approximately 4.6%, operating profit up 12.0%） |
| Reason for revision or withdrawal | In response to aging infrastructure, increasingly severe natural disasters, population decline and aging, the company reassessed the future state it seeks to achieve, its role and the value it provides. In anticipation of increasing uncertainty in the domestic construction market after 2030, it will expand its business areas and earnings sources by further expanding its core businesses and investing in growth areas. |
| Risks identified | Stagnation or contraction of the domestic construction market after 2030, Decline in the construction workforce and shortage of workers due to population decline and aging, Higher material prices, Worsening labor shortages, Regulations and requirements related to overtime-work limits and work-style reform, Fiscal difficulties faced by national and local governments, Increasingly severe natural disasters, Intense competition in overseas markets, Declining overseas demand as Japanese companies return to Japan, Difficulty ensuring the feasibility of new development projects due to soaring construction costs, Difficulty acquiring new properties as a result of rising real estate markets |
| Publication date | 12 May 2026 |
Items this document does not state (6)
Net income targetROIC targetTreasury share acquisition policySelf-assessment of PBR and share priceSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In response to aging infrastructure, increasingly severe natural disasters, population decline and aging, the company reassessed the future state it seeks to achieve, its role and the value it provides. In addition, in anticipation of increasing uncertainty in the domestic construction market after 2030, it aims to expand its core businesses and invest in growth areas.
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