Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit+0.1%
基準 2,026Target2,029Hundreds of millions of yen
Operating profit margin+3.0pt
基準 2,026Target2,029％
ROE+3.0pt
基準 2,026Target2,029％
ROIC+5.0pt
基準 2,023Target2,028％
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.
What happened to the previous planOperating income of ¥5.4 billion per year (Medium-Term Management Plan 2023 target) → Operating income of ¥4.6 billion (three-year average actual result under Medium-Term Management Plan 2023)0.0%Calculated from the two disclosed figures
Investment amount by sectorField Capital Expenditure / Amount ¥5.75 billion, Field Future investments / Amount ¥13.0 billion, Field Shareholder Returns / Amount ¥6.3 billion
Statements about the use of capital
Payout ratio / DOE policyThe company will maintain its current dividend metric, DOE, while continuing progressive dividend increases. The applicable period is the term of Medium-Term Management Plan 2026.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Self-assessment of PBR and share priceUnder Medium-Term Management Plan 2023, the company set a target PBR of at least 1.3x, with actual PBR of 1.45x in FY2024, 1.25x in FY2025, and 1.37x in FY2026, for a three-year average of 1.36x. This plan sets a target PBR of at least 1.5x. The company's self-assessment of whether its share price is at a low level is Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Establishing three core business pillars (strengthening the portfolio)
02Exploring and developing new growth businesses and technologies
03People and organization
04Promoting DX
05Being a company trusted and needed by society and customers
06Strengthening and reviewing shareholder returns
07Practicing management with an emphasis on capital efficiency
Segment targetSegment Slope stabilization works / Sales Target ¥28.5 billion (annual average through FY2029) / Profit Target Not disclosed, Segment Foundation and ground improvement works / Sales Target ¥28.5 billion (annual average through FY2029) / Profit Target Not disclosed, Segment Renovation work / Sales Target ¥18.0 billion (annual average through FY2029) / Profit Target Not disclosed
Risks identified by the company
Shortages of personnel and labor, and disruption of the transfer of technical expertise
Pressure on profit from higher material and energy prices
Potential long-term stagnation in civil engineering investment
Information Security Risk
Occupational accidents
Reason for revision or withdrawal
During the period of the previous medium-term management plan, year-to-year earnings fluctuated significantly, leaving challenges in securing stable earnings. In addition, management challenges related to sustainable growth centered on expanding the scale of the business became apparent, as securing the personnel needed to support construction sites, a common challenge across the construction industry, became increasingly difficult.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2026 |
| Plan period | FY2026-FY2028 (April 2026-March 2029) |
| Progress against the plan | Formulated |
| Sales Target | ¥74.3 billion (three-year average under the medium-term plan, FY2024-FY2026) → At least ¥81.5 billion (three-year average, FY2027-FY2029), ¥82.0 billion (FY2029 business plan) |
| Operating profit target | ¥4.6 billion (three-year average under the medium-term plan, FY2024-FY2026) → At least ¥5.7 billion (three-year average, FY2027-FY2029), ¥6.0 billion (FY2029 business plan) |
| Operating profit margin target | 6.2% (three-year average, FY2024-FY2026) → 7.0% (three-year average, FY2027-FY2029), 7.3% (FY2029 business plan) |
| ROE target | 11.5% (FY2026 actual) → At least 10% (FY2028 target, FY2029 plan) |
| ROIC target | 9.0% (three-year average under Medium-Term Management Plan 2023) → At least 10% (FY2028 target) |
| Payout ratio / DOE policy | The company will maintain its current dividend metric, DOE, while continuing progressive dividend increases. The applicable period is the term of Medium-Term Management Plan 2026. |
| Self-assessment of PBR and share price | Under Medium-Term Management Plan 2023, the company set a target PBR of at least 1.3x, with actual PBR of 1.45x in FY2024, 1.25x in FY2025, and 1.37x in FY2026, for a three-year average of 1.36x. This plan sets a target PBR of at least 1.5x. The company's self-assessment of whether its share price is at a low level is Not disclosed. |
| Investment amount by sector | Field Capital Expenditure / Amount ¥5.75 billion, Field Future investments / Amount ¥13.0 billion, Field Shareholder Returns / Amount ¥6.3 billion |
| Segment target | Segment Slope stabilization works / Sales Target ¥28.5 billion (annual average through FY2029) / Profit Target Not disclosed, Segment Foundation and ground improvement works / Sales Target ¥28.5 billion (annual average through FY2029) / Profit Target Not disclosed, Segment Renovation work / Sales Target ¥18.0 billion (annual average through FY2029) / Profit Target Not disclosed |
| Key initiatives | Establishing three core business pillars (strengthening the portfolio), Exploring and developing new growth businesses and technologies, People and organization, Promoting DX, Being a company trusted and needed by society and customers, Strengthening and reviewing shareholder returns, Practicing management with an emphasis on capital efficiency |
| Results under the previous plan | Operating income of ¥5.4 billion per year (Medium-Term Management Plan 2023 target) → Operating income of ¥4.6 billion (three-year average actual result under Medium-Term Management Plan 2023) |
| Reason for revision or withdrawal | During the period of the previous medium-term management plan, year-to-year earnings fluctuated significantly, leaving challenges in securing stable earnings. In addition, management challenges related to sustainable growth centered on expanding the scale of the business became apparent, as securing the personnel needed to support construction sites, a common challenge across the construction industry, became increasingly difficult. |
| Risks identified | Shortages of personnel and labor, and disruption of the transfer of technical expertise, Pressure on profit from higher material and energy prices, Potential long-term stagnation in civil engineering investment, Information Security Risk, Occupational accidents |
| Date of board resolution | 11 May 2026 |
| Publication date | 11 May 2026 |
Items this document does not state (7)
Net income targetTreasury share acquisition policyCost of capitalTotal investment planNon-financial targetsPlan assumptionsSize of the Target Market
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.Under the previous medium-term management plan, year-to-year earnings fluctuated significantly, leaving challenges in securing stable earnings. In addition, securing the personnel needed to support construction sites, a common challenge across the construction industry, became increasingly difficult, bringing management challenges related to sustainable growth centered on expanding the scale of the business to the fore.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.