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Financial results presentation1898SEIKITOKYU KOGYO CO.,LTD.Construction and Materials

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue fell year on year, while operating income, ordinary income and net income increased due to price pass-through and profit improvement in the Products business. For the fiscal year ending March 2027, the Company expects higher revenue and earnings, including revenue of ¥102,700 million and operating income of ¥6,700 million.

Worth reading
60In focus
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
575
¥ million (year-on-year increase in consolidated operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202616 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥95,259 million-4.1%
Operating profit¥6,417 million+9.9%
Ordinary income¥6,278 million+8.5%
Net income¥4,666 million+20.0%
Selling, general and administrative expenses¥6,422 million
Operating profit margin6.7%, up 0.8 percentage points year on year
Full-year earnings forecast
Consolidated
Orders received
¥101,700 million
Net Sales
¥102,700 million
Gross profit
¥13,200 million
Operating profit
¥6,700 million
Ordinary income
¥6,600 million
Net income for the current fiscal year
¥4,700 million
Standalone
Orders received
¥96,500 million
Net Sales
¥96,500 million
Gross profit
¥11,800 million
Operating profit
¥6,000 million
Ordinary income
¥5,800 million
Net income for the current fiscal year
¥4,200 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue declined and earnings increased, even compared with the initial plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in product profit¥1,638 million
  • Increase in profit from power sales and other businesses¥37 million
  • Increase in non-operating income¥26 million
  • Increase in extraordinary income¥169 million
  • Decrease in extraordinary losses¥321 million
  • Decrease in construction profit¥868 million
  • Increase in selling, general and administrative expenses¥231 million
  • Increase in non-operating expenses¥111 million
  • Increase in income taxes¥203 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Demand in the road construction market is expected to remain firm. The Company expects higher costs due to increases in raw material prices, investments in human resources and other factors. Risks such as supply disruptions for asphalt and heavy oil due to geopolitical risks have not been incorporated. Numerical assumptions were not disclosed.
New initiatives
  • Acquisition of all shares of 株式会社ゼネラルアクト to make it a wholly owned subsidiary and entry into the agricultural waste plastic recycling business
  • Development of the high-strength asphalt mixture “αストロング”
  • Revision of the personnel system from April 2026
  • First certification as a 2026 Certified Health and Productivity Management Outstanding Organization
Key KPIsA metric the company considers important as a management benchmark.
  • Total orders received¥96,367 million
    Year on year against the same period last year+1.4%
  • Carried-over construction orders¥41,012 million
    Year on year against the same period last year+2.8%
  • Asphalt mixture production volume1,567 thousand tonnes
    Year on year against the same period last year+1.2%
  • Asphalt mixture sales volume1,226 thousand tonnes
    Year on year against the same period last year+2.1%
  • Number of female career-track employees84 people
    Year on year against the same period last year+15.1%
  • Number of female managers5 people
    Year on year against the same period last year+25.0%
  • Employee engagement scoreBBB
    Year on year against the same period last yearImproved from B
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Asphalt mixture production volume was 1,567千t and sales volume was 1,226千t. Increases in selling prices and price revisions are described qualitatively.
Segment results
Construction
Net Sales
¥74,658 million-7.1%
Operating profit
¥7,252 million-10.1%
Pavement Materials Manufacturing and Sales business
Net Sales
¥33,373 million-1.7%
Operating profit
¥2,999 million+101.5%
Electricity sales and other businesses
Net Sales
¥1,039 million+6.9%
Operating profit
¥221 million+39.9%
Medium-term management plan targets
The fiscal 2026 plan targets revenue of ¥100 billion, operating income of ¥6 billion, net income of ¥4 billion and ROE of 9.5%. Actual results and forecasts are revenue of ¥102.7 billion, operating income of ¥6.7 billion, net income of ¥4.7 billion and ROE of 10.4%.
Financial targets
An equity ratio of approximately 50%, a DE ratio of 0.3 or lower, and ROE of 10.0%. For the fiscal year ended March 2026, the actual equity ratio was 52.3% and ROE was 10.9%.
Orders received and order backlog
Total orders received were ¥96,367 million, and the backlog of construction work was ¥41,012 million.
Number of stores and locations
50 sales offices and other locations, 49 asphalt mixture plants and other facilities, and 11 consolidated subsidiaries. The number of openings and closures during the period was not disclosed.
Number of employees
Number of Employees1,011 people
Capital expenditures
¥60 100 million three-year cumulative forecast under the medium-term management plan
Annual Dividend
¥71 for the fiscal year ended March 2026 and a forecast of ¥75 for the fiscal year ending March 2027. The interim and year-end breakdown was not disclosed.
Payout ratio
The Company targets DOE of 6%. For the fiscal year ended March 2026, the payout ratio was 55.7% and DOE was 6.1%; the forecast payout ratio for the fiscal year ending March 2027 is 58.5%.
Gross profit
¥12,840 million, gross profit margin of 13.5%, up 0.9 percentage points year on year
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥95,259 million (YoY -4.1%)
Operating profit¥6,417 million (YoY +9.9%)
Ordinary income¥6,278 million (YoY +8.5%)
Net income¥4,666 million (YoY +20.0%)
Gross profit¥12,840 million, gross profit margin of 13.5%, up 0.9 percentage points year on year
Operating profit margin6.7%, up 0.8 percentage points year on year
Selling, general and administrative expenses¥6,422 million
Full-year earnings forecastConsolidated Orders received ¥101,700 million / Net Sales ¥102,700 million / Gross profit ¥13,200 million / Operating profit ¥6,700 million / Ordinary income ¥6,600 million / Net income for the current fiscal year ¥4,700 million / Standalone Orders received ¥96,500 million / Net Sales ¥96,500 million / Gross profit ¥11,800 million / Operating profit ¥6,000 million / Ordinary income ¥5,800 million / Net income for the current fiscal year ¥4,200 million
Self-assessment against the planRevenue declined and earnings increased, even compared with the initial plan
Segment resultsConstruction Net Sales ¥74,658 million (YoY -7.1%) / Operating profit ¥7,252 million (YoY -10.1%) / Pavement Materials Manufacturing and Sales business Net Sales ¥33,373 million (YoY -1.7%) / Operating profit ¥2,999 million (YoY +101.5%) / Electricity sales and other businesses Net Sales ¥1,039 million (YoY +6.9%) / Operating profit ¥221 million (YoY +39.9%)
Breakdown of Factors Affecting the ChangeFactors Increase in product profit / Amount ¥1,638 million, Factors Increase in profit from power sales and other businesses / Amount ¥37 million, Factors Increase in non-operating income / Amount ¥26 million, Factors Increase in extraordinary income / Amount ¥169 million, Factors Decrease in extraordinary losses / Amount ¥321 million, Factors Decrease in construction profit / Amount ¥868 million, Factors Increase in selling, general and administrative expenses / Amount ¥231 million, Factors Increase in non-operating expenses / Amount ¥111 million, Factors Increase in income taxes / Amount ¥203 million
Key KPIsIndicator name Total orders received / Value ¥96,367 million / Year on year against the same period last year ¥1.4 million, Indicator name Carried-over construction orders / Value ¥41,012 million / Year on year against the same period last year ¥2.8 million, Indicator name Asphalt mixture production volume / Value 1,567 thousand tonnes / Year on year against the same period last year 1.2 thousand tonnes, Indicator name Asphalt mixture sales volume / Value 1,226 thousand tonnes / Year on year against the same period last year 2.1 thousand tonnes, Indicator name Number of female career-track employees / Value 84 people / Year on year against the same period last year 15.1 people, Indicator name Number of female managers / Value 5 people / Year on year against the same period last year 25 people, Indicator name Employee engagement score / Value BBB / Year on year against the same period last year Improved from B
Unit price and quantity metricsAsphalt mixture production volume was 1,567千t and sales volume was 1,226千t. Increases in selling prices and price revisions are described qualitatively.
Number of stores and locations50 sales offices and other locations, 49 asphalt mixture plants and other facilities, and 11 consolidated subsidiaries. The number of openings and closures during the period was not disclosed.
Number of employeesNumber of Employees 1,011 people / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookDemand in the road construction market is expected to remain firm. The Company expects higher costs due to increases in raw material prices, investments in human resources and other factors. Risks such as supply disruptions for asphalt and heavy oil due to geopolitical risks have not been incorporated. Numerical assumptions were not disclosed.
Medium-term management plan targetsThe fiscal 2026 plan targets revenue of ¥100 billion, operating income of ¥6 billion, net income of ¥4 billion and ROE of 9.5%. Actual results and forecasts are revenue of ¥102.7 billion, operating income of ¥6.7 billion, net income of ¥4.7 billion and ROE of 10.4%.
Financial targetsAn equity ratio of approximately 50%, a DE ratio of 0.3 or lower, and ROE of 10.0%. For the fiscal year ended March 2026, the actual equity ratio was 52.3% and ROE was 10.9%.
Annual Dividend¥71 for the fiscal year ended March 2026 and a forecast of ¥75 for the fiscal year ending March 2027. The interim and year-end breakdown was not disclosed.
Payout ratioThe Company targets DOE of 6%. For the fiscal year ended March 2026, the payout ratio was 55.7% and DOE was 6.1%; the forecast payout ratio for the fiscal year ending March 2027 is 58.5%.
Capital expenditures¥60 100 million (three-year cumulative forecast under the medium-term management plan)
Orders received and order backlogTotal orders received were ¥96,367 million, and the backlog of construction work was ¥41,012 million.
New initiativesAcquisition of all shares of 株式会社ゼネラルアクト to make it a wholly owned subsidiary and entry into the agricultural waste plastic recycling business, Development of the high-strength asphalt mixture “αストロング”, Revision of the personnel system from April 2026, First certification as a 2026 Certified Health and Productivity Management Outstanding Organization
Items this document does not state (6)
Results for the three months of the current quarterProgress against full-year forecastRisk 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.

For the fiscal year ended March 2026, revenue from completed construction contracts and construction profit in the Construction business declined following the sharp increase in the previous year driven by progress on large-scale projects. In contrast, product profit in the Paving Materials Manufacturing and Sales business improved due to price revisions in response to higher manufacturing costs, increased sales volumes, higher added value, and increased sales in the recycling business and other areas. SG&A expenses increased as the Company expanded investments in human resources, including training and improvements in employee compensation.

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Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | SEIKITOKYU KOGYO CO.,LTD. (1898) timely disclosure | Komori