Risk of construction cost overruns and provisions for construction losses
First written in FY2023. 3 of 10 entries say "Mitigated", first in FY2024-Q3. Latest entry: FY2026.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for loss on construction contracts 27 16」
The provision for construction losses decreased from ¥27 million at the end of the previous fiscal year to ¥16 million, reducing the balance of risks related to construction cost overruns and deteriorating profitability. - 2026-05-14MitigatedEarnings
「Provision for loss on construction contracts 27 16」
The provision for loss on construction contracts declined from ¥27 million at the end of the previous fiscal year to ¥16 million. - FY2026-H1WorsenedAnnual report
「Provision for construction losses 27 31」
The provision for construction losses increased from ¥27 million at the end of the previous fiscal year to ¥31 million at the end of the interim period, quantitatively indicating that the risks of construction cost overruns and deteriorating profitability remain. - FY2025WorsenedAnnual report
「Provision for construction losses 8 27」
The provision for construction losses increased from ¥8 million at the end of the previous fiscal year to ¥27 million, quantitatively indicating that the risks of construction cost overruns and deteriorating profitability remain. - FY2025-H1WorsenedAnnual report
「Provision for construction losses 8 11」
The provision for construction losses increased from ¥8 million at the end of the previous consolidated fiscal year to ¥11 million at the end of the interim period, quantitatively indicating that the risks of construction cost overruns and deteriorating profitability remain. - FY2024Lower provision despite deteriorating profitability in some construction projectsAnnual report
「Lower revenue and deteriorating profitability in some construction projects had a significant impact, resulting in a segment loss of ¥99 million, compared with segment profit of ¥284 million in the previous consolidated fiscal year.」
The risk of construction cost overruns and deteriorating profitability materialized as lower profitability in some construction projects and a segment loss. Meanwhile, the provision for construction losses decreased from ¥121 million at the end of the previous fiscal year to ¥8 million. - FY2024-Q3MitigatedAnnual report
「Provision for construction losses 121 64」
The provision for construction losses decreased from ¥121 million at the end of the previous consolidated fiscal year to ¥64 million at the end of the third quarter, reducing the balance by ¥57 million. - FY2024-Q2Increase in the provision for losses on construction contractsAnnual report
「Provision for construction losses 121 107」
The provision for construction losses decreased from ¥121 million at the end of the previous consolidated fiscal year to ¥107 million at the end of the second quarter. It increased from ¥94 million at the end of the previous quarter. - FY2024-Q1Decrease in the provision for losses on construction contractsAnnual report
「Provision for construction losses 121 94」
The provision for construction losses decreased from ¥121 million at the end of the previous consolidated fiscal year to ¥94 million at the end of the first quarter, a decrease of ¥27 million. - FY2023First statedAnnual report
「If, among construction contracts in progress at the end of the consolidated fiscal year, total estimated construction costs and other costs are likely to exceed total construction revenue and the amount can be reasonably estimated, the company recognizes the expected loss as a provision for construction losses to provide for future losses.」
The possibility of cost overruns and estimation variances in plant and equipment construction was newly identified as a significant accounting estimate, and the provision for construction losses increased from ¥3 million in the previous fiscal year to ¥121 million in the current fiscal year.