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Presentation materials for financial resultsFiscal year ending March 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥121,327 million-4.1%
Operating profit¥5,788 million+15.4%
Ordinary income¥5,997 million+15.2%
Net income¥3,426 million-17.0%
Selling, general and administrative expenses¥8,737 million
Gross Profit Margin
Rate12.0%
Year-on-year change (points)Improved by 1.3 percentage points
Full-year earnings forecast
Net Sales
¥130,000 million
Operating profit
¥6,000 million
Ordinary income
¥6,100 million
Profit attributable to owners of the parent
¥4,200 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales95.5%
Operating profit89.0%
Ordinary income90.9%
Profit attributable to owners of the parent83.6%
Dividends100.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue, operating income, ordinary income, and net income attributable to owners of the parent fell short of the initial forecasts. The dividend was in line with the initial forecast.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Profit increase
Increase in gross profit1,037
Decrease in net income attributable to non-controlling interests34
Decrease in non-operating expenses24
Decrease in income taxes and other items17
Profit decline
Increase in selling, general and administrative expenses264
Increase in extraordinary losses584
Decrease in extraordinary gains958
Decrease in non-operating income7
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Raw material and energy prices are uncertain or expected to rise, construction orders carried forward in the construction business are up year on year, and orders received are progressing well. However, the numerical assumptions are Not disclosedNew initiatives
- Full-scale operation of the new execution budget system
- Introduction of generative AI and safety-support AI applications specialized for the construction industry
- Development and operation of MWD plus
- Field testing of Wattway solar power-generating pavement on public roads
- Promotion of the commercialization of asphalt paving materials derived from biomass
- Participation in the Ministry of Economy, Trade and Industry's Global South demonstration project
- Road inspections using smartphones equipped with AI cameras
- Deployment of warm-mix equipment at plants nationwide
- Emergency price revisions for products, including those for orders already received
Key KPIsA metric the company considers important as a management benchmark.
- Orders received¥130,134 millionYear on year against the same period last yearUp 8.8% year on year
- Carried-forward construction work¥36,864 millionYear on year against the same period last yearUp 31.4% year on year
- ROE6.3 %Year on year against the same period last yearDown 1.2 percentage points year on year
- PBR1.47 timesYear on year against the same period last yearImproved from 1.2x in the previous year
- DOE8.4 %Year on year against the same period last yearIncreased from 7.9% in the previous year
Segment results
Construction
Net Sales
¥74,298 million-4.0%
Segment profit
¥4,413 million+15.6%
Manufacturing, sales and environmental businesses, etc.
Net Sales
¥47,028 million-4.4%
Segment profit
¥3,835 million+10.7%
Medium-term management plan targets
Fiscal year ending March 2027
Net Sales¥130 billion
Operating profit¥6 billion
ROEMore than 8.0%
Changes from when the plan was formulated
Operating profitChanged from ¥7.5 billion to ¥6 billion
ROEChanged from above 9.0% to above 8.0%
Financial targets
ROE targetAt least 8.0%
Actual ROE6.3%
Actual equity ratio60.6%
Actual PBR1.47x
Orders received and order backlog
Orders received¥130,134 million
Carried-forward construction work¥36,864 million
Number of stores and locations
Number at period-end40 business offices, 24 product plants, 43 asphalt-mix plants, 1 technical research institute, and 24 subsidiaries
Number of employees
Number of Employees1,644 employees (average number of temporary employees: 430)
Changes during the period and hiring planContinue active recruitment of new graduates and mid-career hires
Capital expenditures
¥5,574 million cumulative investment since the first year of the medium-term plan
Three-year cumulative target¥15 billion or more
Annual Dividend
Annual dividend per share¥90
Payout ratio
Rate121.2%
Target100% as the benchmark
DOE8.4% (target: 8%)
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥121,327 million (YoY -4.1%) |
| Operating profit | ¥5,788 million (YoY +15.4%) |
| Ordinary income | ¥5,997 million (YoY +15.2%) |
| Net income | ¥3,426 million (YoY -17.0%) |
| Gross Profit Margin | Rate 12.0% / Year-on-year change (points) Improved by 1.3 percentage points |
| Selling, general and administrative expenses | ¥8,737 million |
| Full-year earnings forecast | Net Sales ¥130,000 million / Operating profit ¥6,000 million / Ordinary income ¥6,100 million / Profit attributable to owners of the parent ¥4,200 million |
| Progress against full-year forecast | Net Sales 95.5% / Operating profit 89.0% / Ordinary income 90.9% / Profit attributable to owners of the parent 83.6% / Dividends 100.0% |
| Self-assessment against the plan | Revenue, operating income, ordinary income, and net income attributable to owners of the parent fell short of the initial forecasts. The dividend was in line with the initial forecast. |
| Segment results | Construction Net Sales ¥74,298 million (YoY -4.0%) / Segment profit ¥4,413 million (YoY +15.6%) / Manufacturing, sales and environmental businesses, etc. Net Sales ¥47,028 million (YoY -4.4%) / Segment profit ¥3,835 million (YoY +10.7%) |
| Breakdown of Factors Affecting the Change | Profit increase Increase in gross profit 1,037 / Decrease in net income attributable to non-controlling interests 34 / Decrease in non-operating expenses 24 / Decrease in income taxes and other items 17 / Profit decline Increase in selling, general and administrative expenses 264 / Increase in extraordinary losses 584 / Decrease in extraordinary gains 958 / Decrease in non-operating income 7 |
| Key KPIs | Indicator name Orders received / Value ¥130,134 million / Year on year against the same period last year Up 8.8% year on year, Indicator name Carried-forward construction work / Value ¥36,864 million / Year on year against the same period last year Up 31.4% year on year, Indicator name ROE / Value 6.3 % / Year on year against the same period last year Down 1.2 percentage points year on year, Indicator name PBR / Value 1.47 times / Year on year against the same period last year Improved from 1.2x in the previous year, Indicator name DOE / Value 8.4 % / Year on year against the same period last year Increased from 7.9% in the previous year |
| Number of stores and locations | Number at period-end 40 business offices, 24 product plants, 43 asphalt-mix plants, 1 technical research institute, and 24 subsidiaries / Number of store openings and closures during the period Not disclosed |
| Number of employees | Number of Employees 1,644 employees (average number of temporary employees: 430) / Changes during the period and hiring plan Continue active recruitment of new graduates and mid-career hires |
| Assumptions Underlying the Business Outlook | Raw material and energy prices are uncertain or expected to rise, construction orders carried forward in the construction business are up year on year, and orders received are progressing well. However, the numerical assumptions are Not disclosed |
| Medium-term management plan targets | Fiscal year ending March 2027 Net Sales ¥130 billion / Operating profit ¥6 billion / ROE More than 8.0% / Changes from when the plan was formulated Operating profit Changed from ¥7.5 billion to ¥6 billion / ROE Changed from above 9.0% to above 8.0% |
| Financial targets | ROE target At least 8.0% / Actual ROE 6.3% / Actual equity ratio 60.6% / Actual PBR 1.47x |
| Annual Dividend | Annual dividend per share ¥90 / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | Rate 121.2% / Target 100% as the benchmark / DOE 8.4% (target: 8%) |
| Capital expenditures | ¥5,574 million (cumulative investment since the first year of the medium-term plan) |
| Orders received and order backlog | Orders received ¥130,134 million / Carried-forward construction work ¥36,864 million |
| New initiatives | Full-scale operation of the new execution budget system, Introduction of generative AI and safety-support AI applications specialized for the construction industry, Development and operation of MWD plus, Field testing of Wattway solar power-generating pavement on public roads, Promotion of the commercialization of asphalt paving materials derived from biomass, Participation in the Ministry of Economy, Trade and Industry's Global South demonstration project, Road inspections using smartphones equipped with AI cameras, Deployment of warm-mix equipment at plants nationwide, Emergency price revisions for products, including those for orders already received |
Items this document does not state (7)
Operating profit marginResults for the three months of the current quarterUnit price and quantity metricsRisk amount incorporated into the outlookAcquisition of treasury sharesMarket Size / ShareKey points of the Q&A
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.The decline in revenue was due to construction progress falling below plan and the adoption of a sales policy focused on profitability in manufacturing and sales operations. The gross profit margin improved because the full-scale operation of the new execution budget system enabled the early identification and remediation of unprofitable construction projects. Net income declined because gains on the sale of fixed assets and other items were recorded in the previous fiscal year, while an impairment loss was recorded in the current fiscal year. The medium-term plan targets were revised because of increased cost burdens resulting from higher crude oil and energy prices against the backdrop of the situation in the Middle East and other factors, as well as significant changes in the business environment since the plan was formulated.
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