Worth reading
66In 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
633
¥ million (maximum treasury stock acquisition amount)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateROE-2,015.0pt
基準 2,025Target10％
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).
Net SalesNot disclosed → 55,000 (FY2026 forecast)
Operating profitNot disclosed → 2,300 (FY2026 forecast)
Operating profit marginAt least 10% (target when the plan was formulated) → Not disclosed
Net income for the current fiscal yearNot disclosed → 2,000 (FY2026 forecast)
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planOperating margin of at least 10%, ROE of at least 10%, equity ratio of 55% → FY2025 actuals: ROE of 7.8% and equity ratio of 52.2%. Actual operating margin is Not disclosed.+3,581.8%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyFor the fiscal year ending March 2027, the company forecasts a dividend of ¥75 per share, corresponding to a payout ratio of approximately 100%. The total payout ratio, including treasury stock acquisitions, is expected to be approximately 130%.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Board of Directors resolved to conduct the acquisition on 6 August 2026. The maximum number of shares to be acquired is 400,000, equivalent to 1.5% of the total number of issued shares excluding treasury stock, and the maximum total acquisition price is ¥633 million. The shares will be held for the time being, and their use in the share-based compensation program is under consideration. Details including the acquisition period are Not disclosed.
Cost of capitalShareholders’ equity cost of approximately 7–8%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceAlthough the PBR at the end of FY2025 was 1.07x, remaining above 1x, the share price fell substantially compared with FY2024, when it reached a record high since listing. The company recognizes that a recovery in earnings and improvement in capital profitability are essential to the recovery of the share price.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Formulation of the next medium-term management plan (FY2027–FY2031)
02Proactive IR activities
03Treasury stock acquisition
04Dividend policy (flexible shareholder returns with a focus on capital efficiency)
05Reduction of cross-shareholdings
Plan assumptionsThe challenging business environment is expected to continue through the first half of the next medium-term management plan period (FY2027–FY2031)., The business environment is expected to recover during the latter half of the next medium-term management plan period., In Japan’s steel bridge market, order volumes measured by steel weight declined from nearly 200,000 tonnes around FY2022 to less than 100,000 tonnes in FY2025.
Size of the Target MarketOrder volumes in Japan’s steel bridge market, measured by steel weight, were nearly 200,000 tonnes around FY2022 and less than 100,000 tonnes in FY2025. Source: Not disclosed.
Risks identified by the company
Higher construction unit prices due to rising wages and prices
Decline in order volumes for the bridge business
Need for significantly larger additional budgets for existing contracted projects
Downsizing or postponement of new contracts related to large-scale renewal and maintenance
Risk of losses associated with the construction of highly complex projects
Business continuity risk in the event of a major natural disaster
Reason for revision or withdrawal
The business environment has deteriorated substantially from the outlook at the time the plan was formulated in 2022. Construction unit prices have risen due to higher wages and prices, order volumes have declined on a work-volume basis, and existing contracted projects require significantly larger additional budgets. As a result, the trend toward downsizing or postponing new contracts has continued.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (FY2022–FY2026) |
| Plan period | FY2022–FY2026 |
| Progress against the plan | Annual update |
| Sales Target | Not disclosed → 55,000 (FY2026 forecast) |
| Operating profit target | Not disclosed → 2,300 (FY2026 forecast) |
| Operating profit margin target | At least 10% (target when the plan was formulated) → Not disclosed |
| Net income target | Not disclosed → 2,000 (FY2026 forecast) |
| ROE target | 7.8% (FY2025 actual) → 10% (target for the current fiscal year) |
| Payout ratio / DOE policy | For the fiscal year ending March 2027, the company forecasts a dividend of ¥75 per share, corresponding to a payout ratio of approximately 100%. The total payout ratio, including treasury stock acquisitions, is expected to be approximately 130%. |
| Treasury share acquisition policy | The Board of Directors resolved to conduct the acquisition on 6 August 2026. The maximum number of shares to be acquired is 400,000, equivalent to 1.5% of the total number of issued shares excluding treasury stock, and the maximum total acquisition price is ¥633 million. The shares will be held for the time being, and their use in the share-based compensation program is under consideration. Details including the acquisition period are Not disclosed. |
| Cost of capital | Shareholders’ equity cost of approximately 7–8% |
| Self-assessment of PBR and share price | Although the PBR at the end of FY2025 was 1.07x, remaining above 1x, the share price fell substantially compared with FY2024, when it reached a record high since listing. The company recognizes that a recovery in earnings and improvement in capital profitability are essential to the recovery of the share price. |
| Plan assumptions | The challenging business environment is expected to continue through the first half of the next medium-term management plan period (FY2027–FY2031)., The business environment is expected to recover during the latter half of the next medium-term management plan period., In Japan’s steel bridge market, order volumes measured by steel weight declined from nearly 200,000 tonnes around FY2022 to less than 100,000 tonnes in FY2025. |
| Key initiatives | Formulation of the next medium-term management plan (FY2027–FY2031), Proactive IR activities, Treasury stock acquisition, Dividend policy (flexible shareholder returns with a focus on capital efficiency), Reduction of cross-shareholdings |
| Results under the previous plan | Operating margin of at least 10%, ROE of at least 10%, equity ratio of 55% → FY2025 actuals: ROE of 7.8% and equity ratio of 52.2%. Actual operating margin is Not disclosed. |
| Reason for revision or withdrawal | The business environment has deteriorated substantially from the outlook at the time the plan was formulated in 2022. Construction unit prices have risen due to higher wages and prices, order volumes have declined on a work-volume basis, and existing contracted projects require significantly larger additional budgets. As a result, the trend toward downsizing or postponing new contracts has continued. |
| Size of the Target Market | Order volumes in Japan’s steel bridge market, measured by steel weight, were nearly 200,000 tonnes around FY2022 and less than 100,000 tonnes in FY2025. Source: Not disclosed. |
| Risks identified | Higher construction unit prices due to rising wages and prices, Decline in order volumes for the bridge business, Need for significantly larger additional budgets for existing contracted projects, Downsizing or postponement of new contracts related to large-scale renewal and maintenance, Risk of losses associated with the construction of highly complex projects, Business continuity risk in the event of a major natural disaster |
| Date of board resolution | 6 August 2026 |
| Publication date | 6 August 2026 |
Items this document does not state (5)
ROIC targetTotal investment planInvestment amount by sectorSegment targetNon-financial targets
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 company explained that the business environment has deteriorated due to lower order volumes for public investment projects on a work-volume basis, higher construction unit prices, the need for additional budgets for projects already under contract, and the downsizing or postponement of new contracts. The treasury stock acquisition is intended to further improve capital efficiency and implement a flexible capital policy.
How to read this page
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