Improving Construction Profit Margins by Reducing Low-Margin Projects
First written in FY2016. 16 of 37 entries say "Advanced", first in FY2017-Q2. Latest entry: 2026-08-07.
Ichiken moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
91 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Operating income was ¥9,033 million, up 32.2% from the previous fiscal year; ordinary income was ¥8,954 million, up 32.3%; and net income attributable to owners of the parent was ¥6,408 million, up 36.9%.」
In the second year of consolidation, operating income was ¥9,033 million, ordinary income was ¥8,954 million, and net income attributable to owners of the parent was ¥6,408 million, all substantially higher than in the previous fiscal year. - FY2025First-year disclosure of consolidated earningsAnnual report
「As a result, for the consolidated fiscal year, net sales were ¥9,899 million. Operating income was ¥686.6 million, ordinary income was ¥680 million, and net income attributable to owners of the parent was ¥469.7 million.」
No year-on-year comparison is provided because this was the first year of preparing consolidated financial statements, but consolidated net sales of ¥9,899 million, operating income of ¥686.6 million and ordinary income of ¥680 million were disclosed. - FY2024AdvancedAnnual report
「In terms of profit and loss, gross profit increased due to higher revenue from completed construction and improved margins, among other factors. Operating income was ¥4,100 million, up 53.7% from the previous fiscal year; ordinary income was ¥4,020 million, up 55.5%; and net income attributable to owners of the parent was ¥2,938 million, up 72.0%.」
The company shifted from margin deterioration caused by higher materials prices in the previous fiscal year to higher earnings driven by increased revenue from completed construction and improved margins, with operating income, ordinary income and net income attributable to owners of the parent increasing substantially. - FY2024-Q3AdvancedAnnual report
「In terms of profit and loss, gross profit increased due to improved margins, among other factors. Operating income was ¥3,085 million, up 41.5% year on year; ordinary income was ¥3,028 million, up 40.7%; and net income for the quarter was ¥2,196 million, up 51.8%.」
Improved margins increased gross profit, and operating income, ordinary income and net income for the quarter exceeded the year-earlier levels. - FY2024-Q2WorsenedAnnual report
「Orders received were ¥5,131.6 million, up 29.8% year on year. Revenue from completed construction was ¥4,652.9 million, up 5.0%, and construction contracts carried forward to the next period were ¥8,131.1 million, up 2.4%. Segment profit was ¥217.3 million, down 9.1%.」
In the construction business, orders received, revenue from completed construction and construction contracts carried forward all increased, while segment profit decreased 9.1% year on year, indicating that higher orders and construction volume did not translate into higher profit. - FY2024-Q1WorsenedAnnual report
「Regarding profit and loss, although completed construction revenue increased, gross profit on completed construction contracts declined due to higher construction material prices and other factors. As a result, operating profit was ¥612 million, down 40.8% year on year; ordinary profit was ¥610 million, down 40.7%; and net profit for the quarter was ¥518 million, down 25.1%.」
Although revenue from completed construction increased, higher materials prices reduced gross profit on completed construction and operating income and other income measures, and margin deterioration has continued following the previous period of improving margins. - FY2023WorsenedAnnual report
「Revenue from completed construction increased, but gross profit on completed construction decreased due to higher construction materials prices and other factors, resulting in operating income of ¥2,667 million, down 43.0% from the previous fiscal year.」
Although revenue from completed construction increased, higher materials prices reduced gross profit on completed construction and operating income, marking a shift from the previous period of improving margins to deteriorating margins. - FY2023-Q3WorsenedAnnual report
「Although completed construction revenue increased, gross profit on completed construction contracts declined due to the impact of soaring construction material prices and other factors. As a result, operating profit was ¥2,181 million, down 41.0% year on year; ordinary profit was ¥2,151 million, down 41.5%; and net profit for the quarter was ¥1,447 million, down 45.5%.」
Although revenue from completed construction increased, higher construction materials prices reduced gross profit on completed construction, widening the declines in operating income and other income measures. - FY2023-Q2WorsenedAnnual report
「Although completed construction revenue increased, gross profit on completed construction contracts declined due to higher construction material prices and other factors. As a result, operating profit was ¥1,666 million, down 27.3% year on year; ordinary profit was ¥1,642 million, down 28.1%; and net profit for the quarter was ¥1,106 million, down 34.8%.」
Although revenue from completed construction increased, higher construction materials prices and other factors reduced gross profit on completed construction, and operating income and other income measures fell below the year-earlier levels. - FY2023-Q1WorsenedAnnual report
「Although completed construction revenue increased, gross profit on completed construction contracts declined due to higher construction material prices and other factors. As a result, operating profit was ¥1,033 million, down 18.5% year on year; ordinary profit was ¥1,029 million, down 18.8%; and net profit for the quarter was ¥692 million, down 22.2%.」
Although revenue from completed construction increased 32.7% year on year, higher construction materials prices and other factors reduced gross profit on completed construction, and operating income, ordinary income and net income for the quarter fell below the year-earlier levels. - FY2022WorsenedAnnual report
「Orders received were ¥9,396.9 million, up 10.6% from the previous fiscal year. Revenue from completed construction was ¥8,331.6 million, down 5.3%, while construction contracts carried forward to the next period were ¥8,416.9 million, up 14.5%. Segment profit was ¥614 million, down 7.9%.」
Orders received and construction contracts carried forward increased, while revenue from completed construction and construction business segment profit decreased. - FY2022-Q3WorsenedAnnual report
「In terms of profit and loss, gross profit on completed construction decreased due to lower revenue from completed construction, among other factors. Operating income was ¥3,694 million, down 12.4% year on year; ordinary income was ¥3,679 million, down 11.8%; and net income for the quarter was ¥2,656 million, down 6.5%.」
Lower revenue from completed construction led to a decrease in gross profit on completed construction, and operating income, ordinary income and net income for the quarter fell below the year-earlier levels. - FY2022-Q2Earnings increased as lower SG&A expenses offset a decrease in gross profitAnnual report
「Gross profit on completed construction decreased due to lower revenue from completed construction, among other factors, but lower selling, general and administrative expenses resulted in operating income of ¥2,292 million, up 1.2% year on year, and ordinary income of ¥2,285 million, up 2.4%.」
Gross profit on completed construction decreased, and segment profit in the construction business fell 7.9% year on year, but company-wide operating income and ordinary income increased due to lower SG&A expenses. - FY2022-Q1AdvancedAnnual report
「In terms of profit and loss, gross profit increased due to improved margins, among other factors. Operating income was ¥1,268 million, up 91.7% year on year; ordinary income was ¥1,267 million, up 93.7%; and net income for the quarter was ¥890 million, up 97.5%.」
Improved margins increased gross profit, and operating income, ordinary income and net income for the quarter substantially exceeded the year-earlier levels. - FY2021AdvancedAnnual report
「In terms of profit and loss, gross profit increased due to higher revenue from completed construction and improved margins, among other factors. Operating income was ¥4,758 million, up 8.6% from the previous fiscal year, and ordinary income was ¥4,673 million, up 10.2%.」
Higher revenue from completed construction and improved margins increased gross profit, and operating income and ordinary income exceeded the previous fiscal year. - FY2021-Q3AdvancedAnnual report
「In terms of profit and loss, gross profit on completed construction increased due to higher revenue from completed construction and improved margins, among other factors. Operating income was ¥4,217 million, up 31.1% year on year; ordinary income was ¥4,172 million, up 30.1%; and net income for the quarter was ¥2,842 million, up 28.9%.」
Higher revenue from completed construction and improved margins increased gross profit on completed construction, and operating income, ordinary income and net income for the quarter exceeded the year-earlier levels. - FY2021-Q2AdvancedAnnual report
「In terms of profit and loss, gross profit on completed construction increased due to higher revenue from completed construction and improved project profitability, among other factors. Operating income was ¥2,265 million, up 8.5% year on year; ordinary income was ¥2,230 million, up 7.0%; and net income for the quarter was ¥1,539 million, up 6.6%.」
Gross profit on completed construction increased due to higher completed construction revenue and improved construction profitability, and operating profit, ordinary profit and net income for the quarter exceeded the same period of the previous year. - FY2021-Q1RestatedAnnual report
「In terms of profit and loss, gross profit increased, but higher selling, general and administrative expenses resulted in operating income of ¥661 million, down 16.3% year on year; ordinary income of ¥654 million, down 19.8%; and net income for the quarter of ¥450 million, down 21.0%.」
The pattern has continued in which gross profit increases while operating income, ordinary income and net income for the quarter fall below the year-earlier levels due to higher selling, general and administrative expenses. - FY2020Operating income increased despite lower gross profit as SG&A expenses declinedAnnual report
「Gross profit increased, but higher selling, general and administrative expenses resulted in operating income of ¥4,381 million, down 5.1% from the previous fiscal year, and ordinary income of ¥4,241 million, down 7.6%.」
Although gross profit increased, operating income and ordinary income fell below the previous fiscal year due to higher selling, general and administrative expenses. - FY2020-Q3WorsenedAnnual report
「In terms of profit and loss, gross profit on completed construction decreased due to lower revenue from completed construction, among other factors. Operating income was ¥3,216 million, down 3.9% year on year; ordinary income was ¥3,207 million, down 3.8%; and net income for the quarter was ¥2,204 million, down 5.1%.」
Lower revenue from completed construction led to a decrease in gross profit on completed construction, and operating income, ordinary income and net income for the quarter fell below the year-earlier levels. - FY2020-Q2Gross profit increased despite lower revenue from completed constructionAnnual report
「In terms of profit and loss, although revenue from completed construction decreased, gross profit on completed construction increased, among other factors. Operating income was ¥2,088 million, up 11.6% year on year; ordinary income was ¥2,084 million, up 11.7%; and net income for the quarter was ¥1,444 million, up 13.8%.」
Although revenue from completed construction decreased, gross profit on completed construction increased, and operating income, ordinary income and net income for the quarter all exceeded the year-earlier levels. This disclosure identifies the increase in gross profit on completed construction, rather than a decrease in low-margin construction projects, as the factor behind higher earnings. - FY2020-Q1AdvancedAnnual report
「In terms of profit and loss, gross profit on completed construction increased due to higher revenue from completed construction and improved margins resulting from a decrease in low-margin construction projects. Operating income was ¥790 million, up 89.9% year on year; ordinary income was ¥815 million, up 93.8%; and net income for the quarter was ¥570 million, up 205.1%.」
The company again explicitly identified improved margins resulting from a decrease in low-margin construction projects as a factor behind higher earnings. Operating income, ordinary income and net income for the quarter exceeded the year-earlier levels. - FY2019WorsenedAnnual report
「Regarding profit and loss, although completed construction revenue declined, operating profit was ¥4,618 million, down 6.3% year on year, and ordinary profit was ¥4,590 million, down 7.3%, due mainly to a decline in gross profit on completed construction.」
While revenue from completed construction increased, gross profit on completed construction decreased, and operating and ordinary income fell below the previous fiscal year. - FY2019-Q3RestatedAnnual report
「Regarding profit and loss, although completed construction revenue increased, operating profit was ¥3,347 million, down 13.4% year on year, ordinary profit was ¥3,335 million, down 14.5%, and net income for the quarter was ¥2,323 million, down 12.8%, due mainly to a decline in gross profit on completed construction.」
The pattern of higher completed construction revenue but lower gross profit on completed construction, resulting in operating profit, ordinary profit and net income for the quarter falling below the same period of the previous year, has continued. - FY2019-Q2WorsenedAnnual report
「Regarding profit and loss, although completed construction revenue increased, operating profit was ¥1,870 million, down 23.8% year on year, ordinary profit was ¥1,866 million, down 23.8%, and net income for the quarter was ¥1,269 million, down 9.7%, due mainly to a decline in gross profit on completed construction.」
Completed construction revenue increased, while gross profit on completed construction declined, resulting in operating profit, ordinary profit and net income for the quarter falling below the same period of the previous year. - FY2019-Q1WorsenedAnnual report
「Regarding profit and loss, operating profit was ¥416 million, down 71.3% year on year, ordinary profit was ¥420 million, down 71.1%, and net income for the quarter was ¥187 million, down 82.1%, as gross profit on completed construction declined due mainly to lower completed construction revenue.」
Gross profit on completed construction declined due to lower completed construction revenue, resulting in significant year-on-year declines in operating profit, ordinary profit and net income for the quarter. - FY2018AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥4,927 million, up 13.1% year on year, and ordinary profit was ¥4,951 million, up 15.8%, as gross profit on completed construction increased due mainly to higher completed construction revenue and improved construction profitability.」
Operating profit increased to ¥4,927 million and ordinary profit to ¥4,951 million due to higher completed construction revenue and improved construction profitability. - FY2018-Q3AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥3,866 million, up 16.3% year on year, ordinary profit was ¥3,902 million, up 18.3%, and net income for the quarter was ¥2,664 million, up 12.5%, as gross profit on completed construction increased due mainly to higher completed construction revenue and improved construction profitability.」
In addition to higher completed construction revenue, improved construction profitability was explicitly identified as a factor behind the increase in profit, with operating profit, ordinary profit and net income for the quarter exceeding the same period of the previous year. - FY2018-Q2Change in factors driving profit growthAnnual report
「Regarding profit and loss, operating profit was ¥2,456 million, up 14.1% year on year, and ordinary profit was ¥2,449 million, up 14.6%, as gross profit on completed construction increased due mainly to higher completed construction revenue.」
Operating profit and ordinary profit increased, but the factor explicitly cited for the increase this time was higher completed construction revenue rather than a decline in low-margin construction projects. - FY2018-Q1AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥1,449 million, up 61.4% year on year, ordinary profit was ¥1,454 million, up 62.2%, and net income for the quarter was ¥1,044 million, up 77.3%, as gross profit on completed construction increased due mainly to a decline in low-margin construction projects and higher completed construction revenue.」
Gross profit on completed construction increased due to a decline in low-margin construction projects and higher completed construction revenue, and operating profit, ordinary profit and net income for the quarter exceeded the same period of the previous year. - FY2017AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥4,355 million, up 12.0% year on year, and ordinary profit was ¥4,276 million, up 12.9%, as gross profit on completed construction increased due mainly to higher completed construction revenue and a decline in low-margin construction projects.」
Operating profit and ordinary profit increased year on year due to a decline in low-margin construction projects and higher completed construction revenue. - FY2017-Q3AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥3,325 million, up 3.0% year on year, ordinary profit was ¥3,299 million, up 5.0%, and net income for the quarter was ¥2,369 million, up 22.0%, as gross profit on completed construction increased due mainly to higher completed construction revenue and improved construction profitability.」
Gross profit on completed construction increased due to higher completed construction revenue and improved construction profitability, and operating profit, ordinary profit and net income for the quarter exceeded the same period of the previous year. - FY2017-Q2AdvancedAnnual report
「Regarding profit and loss, operating profit was ¥2,152 million, up 20.5% year on year, ordinary profit was ¥2,137 million, up 25.3%, and net income for the quarter was ¥1,452 million, down 1.9%, as gross profit on completed construction increased due mainly to higher completed construction revenue and improved construction profitability.」
Gross profit on completed construction, operating profit and ordinary profit exceeded the same period of the previous year due to improved construction profitability. Net income for the quarter, however, declined 1.9% year on year. - FY2017-Q1WorsenedAnnual report
「Regarding profit and loss, operating profit was ¥897 million, down 12.4% year on year, ordinary profit was ¥896 million, down 11.1%, and net income for the quarter was ¥588 million, down 39.5%, as gross profit on completed construction declined due mainly to lower gross margins on completed construction.」
Contrary to the decline in low-margin construction projects and margin improvement reported in the previous fiscal year, operating profit, ordinary profit and net income for the quarter declined year on year due to lower gross margins on completed construction. - FY2016First statedAnnual report
「Regarding profit and loss, operating profit was ¥3,890 million, up 64.9% year on year, and ordinary profit was ¥3,788 million, up 63.2%, as gross profit on completed construction increased due to higher completed construction revenue and improved margins resulting from a decline in low-margin construction projects.」
The Company cited a decline in low-margin construction projects and improved margins as factors behind its performance for the fiscal year.