Risk of fluctuations in construction costs due to surging material and labor costs
First written in FY2017. 12 of 19 entries say "Worsened", first in FY2020. Latest entry: 2026-08-06.
Tokyo Energy & Systems moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 28 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「Although attention must be paid to higher prices for materials and equipment and longer procurement lead times resulting from a deterioration in the external environment, as well as a chronic labor shortage」
The continuing burden on costs and procurement from higher materials and equipment prices, longer procurement lead times and the labor shortage is disclosed. - FY2026WorsenedAnnual report
「Looking ahead, in addition to labor shortages resulting from strong labor demand, rising prices, the impact of exchange rate fluctuations and an upward trend in interest rates, it will be necessary to monitor the impact of the situation in the Middle East, and the economic outlook is expected to remain uncertain.」
In addition to labor shortages, rising prices of materials and equipment, and rising exchange rates and interest rates, energy prices and supply constraints resulting from the situation in the Middle East were cited as risks affecting the cost environment. - FY2025WorsenedAnnual report
「Japan's economy remained uncertain, despite the continuing upward trend in capital investment on the back of strong corporate earnings, due to risks including strong labor demand, rising prices, exchange rate fluctuations and an upward trend in interest rates.」
Strong labor demand, rising prices, exchange rate fluctuations and rising interest rates, as well as soaring prices of materials and equipment and labor costs and labor shortages, continued to be cited as risks surrounding construction costs. - FY2025-H1WorsenedAnnual report
「In addition, the volume of construction work at conventional power plants, which the Company has long treated as a core business, has been on a declining trend. Together with the impact on costs from soaring prices of materials and equipment and labor costs, as well as chronic labor shortages, this has resulted in a continuing challenging operating environment.」
In addition to the decline in construction volume, soaring prices of materials and equipment and labor costs, together with chronic labor shortages, were described as new burden factors surrounding construction costs. - FY2024WorsenedAnnual report
「In terms of profit, although there was an increase in subcontracting costs associated with labor shortages, operating profit increased to ¥3,959 million, up 14.5% year on year, due to the increase in net sales.」
While the increase in subcontracting costs associated with labor shortages was cited as a new cost burden, operating profit increased due to higher net sales. - FY2024-Q3MitigatedAnnual report
「Japan's economy is generally on a recovery trend, with capital investment showing an increasing trend on the back of strong corporate earnings, a weaker yen trend in foreign exchange markets and a pause in the surge in energy resource prices, among other factors. However, risks weighing on the economy remain, including rising prices and global geopolitical uncertainty, and the outlook remains uncertain.」
The disclosure stated that the surge in energy resource prices had begun to ease, indicating some mitigation in the external environment behind the previously burdensome impact of soaring resource prices on costs. - FY2023WorsenedAnnual report
「There was an increase in the procurement prices of biomass fuel due to soaring resource prices and the effects of exchange rate fluctuations.」
In addition to the existing risk of fluctuations in construction costs, higher procurement prices for biomass fuel due to soaring resource prices and exchange rate fluctuations became an actual factor weighing on profit. - FY2023-Q1WorsenedAnnual report
「Japan's economy remains uncertain due to rising raw material prices and supply constraints, amid concerns over the prolonged situation in Ukraine and the impact of China's restrictions on economic activity, although signs of a recovery have emerged in corporate capital investment and private consumption.」
In addition to concerns over the situation in Ukraine and China's restrictions on economic activity, rising raw material prices and supply constraints emerged, and the uncertain external environment surrounding construction costs was described. - FY2022WorsenedAnnual report
「The provision for loss on construction contracts increased from ¥630 million to ¥984 million, and the balance at the end of the current fiscal year was ¥1,079 million.」
The current-year increase in the provision for loss on construction contracts related to the risk of fluctuations in construction costs was ¥984 million, and the balance at year-end was ¥1,079 million. - FY2022-Q3WorsenedAnnual report
「In terms of profit, despite the increase in net sales, the Company had many projects with high cost ratios, and incurred amortisation of customer-related assets and other assets associated with the business succession, entry costs for the biomass power generation business, upfront investments for future growth such as costs for developing the Thailand plant, the overseas production base, and higher expenses resulting from the active promotion of sales activities and other initiatives」
The high number of construction projects with high cost ratios, together with costs associated with the business succession, entry into the biomass business and development of the Thailand plant, emerged as factors behind the decline in profit. - FY2021WorsenedAnnual report
「Provision for loss on construction contracts 529 631」
The provision for loss on construction contracts increased from ¥529 million at the end of the previous fiscal year to ¥631 million. - FY2020WorsenedAnnual report
「In terms of profit, operating profit was ¥3,918 million, down 18.7% year on year, due to the decrease in net sales and the increase in the cost ratio in new business areas as the Company sought to expand its business domains, among other factors」
While construction cost controls were being advanced, the increase in the cost ratio in new business areas associated with business expansion was cited as a factor behind the decline in profit. - FY2019MitigatedAnnual report
「The provision for loss on construction contracts decreased from ¥2,872 million to ¥520 million.」
The provision for loss on construction contracts decreased from ¥2,872 million at the end of the previous consolidated fiscal year to ¥520 million. - FY2019-Q3Disclosure of a decrease in the provision for loss on construction contractsAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, total liabilities decreased by ¥6,506 million from the end of the previous consolidated fiscal year to ¥18,299 million. This was mainly due to decreases in income taxes payable and the provision for loss on construction contracts.」
The provision for loss on construction contracts decreased from ¥2,887 million at the end of the previous consolidated fiscal year to ¥751 million at the end of the third quarter of the current fiscal year. - FY2019-Q2Provision for losses on construction contracts decreasedAnnual report
「Total liabilities at the end of the second-quarter consolidated accounting period decreased by ¥7,067 million from the end of the previous consolidated fiscal year to ¥17,737 million. This was mainly due to a decrease in the provision for construction losses.」
The company stated that the decrease in the provision for construction losses was the main factor behind the reduction in liabilities. This was a change in the balance of a provision related to the risk of fluctuations in construction costs, but no explicit reduction in risk was stated. - FY2018MaterialisedAnnual report
「The provision for construction losses was ¥2,872 million at the end of the consolidated fiscal year, up from ¥730 million at the end of the previous consolidated fiscal year.」
In connection with the risk of fluctuations in construction costs, the provision for construction losses increased from ¥730 million to ¥2,872 million. - FY2017First statedAnnual report
「However, if construction costs fluctuate significantly during the construction phase due to increases in material and labor costs, the Tokyo Enesys Group's business performance may be affected, including through the recognition of a provision for construction losses.」
The company identifies significant fluctuations in construction costs due to higher material and labor costs and related factors, and the resulting recognition of provisions for construction losses, as risks that may affect business performance.