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
38.5
Year-on-year change in operating profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending June 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales5,131 Millions of yen+24.7%
Operating profit157 Millions of yen-38.5%
Net income78 Millions of yen-50.0%
Selling, general and administrative expenses372 Millions of yen
Gross Profit Margin
Rate10.1
Year-on-year change (points)-5.4
Operating profit margin
Rate3.1
Year-on-year change (points)-3.2
Results for the three months of the current quarter
Revenue¥5,131 million
Gross profit¥515 million
Selling, general and administrative expenses¥372 million
Operating profit¥157 million
Profit for the period¥78 million
Full-year earnings forecast
Revenue
20,699 Millions of yen
Gross profit
3,146 Millions of yen
Selling, general and administrative expenses
1,516 Millions of yen
Operating profit
1,697 Millions of yen
Profit for the period
1,101 Millions of yen
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Revenue24.8
Gross profit16.4
Selling, general and administrative expenses24.6
Operating profit9.3
Profit for the period7.1
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and operating profit came in below internal assumptions, while order intake and order backlog were above internal assumptions.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The equity ratio is 28.6%, and no specific target level has been set.
- M&A will continue, although the number of transactions completed annually may vary. The metrics prioritized in acquisition pricing have not been disclosed.
- Defense-related construction has high barriers to entry because of the difficulty of cost estimation and security requirements, and the company plans to participate actively in bids.
- The company plans to offset the deterioration in profitability caused by front-loaded costs on certain projects through a review of execution budgets and additional orders.
- Approximately 70% of the order backlog at the end of the fiscal year ended June 2026 is expected to be converted into revenue during the fiscal year ending June 2027, with approximately 30% contributing from the fiscal year ending June 2028 onward.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Scale of snow-removal operationsAssumptionAt a level broadly in line with the previous fiscal year
- Timing of order recognitionAssumptionOrders for the current fiscal year are expected to be concentrated in the second half.
- Timing of revenue recognitionAssumptionA larger portion is expected to be recognized in the first half, mainly through the conversion of the order backlog at the end of the previous fiscal year.
New initiatives
- Won an ECI technical cooperation contract concerning Kamimachi Garrison as part of a 4-company JV.
- Capital and business alliance with 大豊建設 and appointment of 1 director
- Execution of a management support agreement and other arrangements with the Development Bank of Japan (DBJ)
- Strategic support focused on human capital management through the DBJ Future Value Co-Creation Program
Key KPIsA metric the company considers important as a management benchmark.
- Orders received3,089 Millions of yenYear on year against the same period last year-26.2%
- Order backlog18,569 Millions of yenYear on year against the same period last year+8.6%
Medium-term management plan targets
Target fiscal yearFiscal year ending June 2036
Revenue¥80.0 billion
Operating profit margin8% or higher
ROE20% or higher
Financial targets
ROE
Target20% or higher
Actual results24.8% (fiscal year ended June 2026)
Equity ratio
Actual results28.6% (at the end of the first quarter of the fiscal year ending June 2027)
Market Size / Share
Domestic construction investment¥63.6 trillion in domestic construction investment
Tohoku construction investment¥5.1 trillion in construction investment in Tohoku
Tohoku Public Works Investment Amount¥2.1 trillion
Orders received and order backlog
Orders received
3,089 Millions of yen-26.2%
Order backlog
18,569 Millions of yen+8.6%
Number of employees
Number of Employees378 people
As ofEnd of June 2026
Annual Dividend
Annual dividend per share45 Yen
Payout ratio
Rate40.4
Basic Policy40
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending June 2027 |
| Net Sales | 5,131 Millions of yen (YoY +24.7%) |
| Operating profit | 157 Millions of yen (YoY -38.5%) |
| Net income | 78 Millions of yen (YoY -50.0%) |
| Gross Profit Margin | Rate 10.1 / Year-on-year change (points) -5.4 |
| Operating profit margin | Rate 3.1 / Year-on-year change (points) -3.2 |
| Selling, general and administrative expenses | 372 Millions of yen |
| Results for the three months of the current quarter | Revenue ¥5,131 million / Gross profit ¥515 million / Selling, general and administrative expenses ¥372 million / Operating profit ¥157 million / Profit for the period ¥78 million |
| Full-year earnings forecast | Revenue 20,699 Millions of yen / Gross profit 3,146 Millions of yen / Selling, general and administrative expenses 1,516 Millions of yen / Operating profit 1,697 Millions of yen / Profit for the period 1,101 Millions of yen |
| Progress against full-year forecast | Revenue 24.8 / Gross profit 16.4 / Selling, general and administrative expenses 24.6 / Operating profit 9.3 / Profit for the period 7.1 |
| Self-assessment against the plan | Revenue and operating profit came in below internal assumptions, while order intake and order backlog were above internal assumptions. |
| Key KPIs | Indicator name Orders received / Value 3,089 Millions of yen / Year on year against the same period last year -26.2 Millions of yen, Indicator name Order backlog / Value 18,569 Millions of yen / Year on year against the same period last year 8.6 Millions of yen |
| Number of employees | Number of Employees 378 people / As of End of June 2026 |
| Assumptions Underlying the Business Outlook | Item Scale of snow-removal operations / Assumption At a level broadly in line with the previous fiscal year, Item Timing of order recognition / Assumption Orders for the current fiscal year are expected to be concentrated in the second half., Item Timing of revenue recognition / Assumption A larger portion is expected to be recognized in the first half, mainly through the conversion of the order backlog at the end of the previous fiscal year. |
| Medium-term management plan targets | Target fiscal year Fiscal year ending June 2036 / Revenue ¥80.0 billion / Operating profit margin 8% or higher / ROE 20% or higher |
| Financial targets | ROE Target 20% or higher / Actual results 24.8% (fiscal year ended June 2026) / Equity ratio Target Not disclosed / Actual results 28.6% (at the end of the first quarter of the fiscal year ending June 2027) |
| Annual Dividend | Annual dividend per share 45 Yen / Interim Not disclosed / End of period Not disclosed |
| Payout ratio | Rate 40.4 / Basic Policy 40 |
| Orders received and order backlog | Orders received 3,089 Millions of yen (YoY -26.2%) / Order backlog 18,569 Millions of yen (YoY +8.6%) |
| Market Size / Share | Domestic construction investment ¥63.6 trillion in domestic construction investment / Tohoku construction investment ¥5.1 trillion in construction investment in Tohoku / Tohoku Public Works Investment Amount ¥2.1 trillion / Company share Not disclosed |
| Key points of the Q&A | The equity ratio is 28.6%, and no specific target level has been set., M&A will continue, although the number of transactions completed annually may vary. The metrics prioritized in acquisition pricing have not been disclosed., Defense-related construction has high barriers to entry because of the difficulty of cost estimation and security requirements, and the company plans to participate actively in bids., The company plans to offset the deterioration in profitability caused by front-loaded costs on certain projects through a review of execution budgets and additional orders., Approximately 70% of the order backlog at the end of the fiscal year ended June 2026 is expected to be converted into revenue during the fiscal year ending June 2027, with approximately 30% contributing from the fiscal year ending June 2028 onward. |
| New initiatives | Won an ECI technical cooperation contract concerning Kamimachi Garrison as part of a 4-company JV., Capital and business alliance with 大豊建設 and appointment of 1 director, Execution of a management support agreement and other arrangements with the Development Bank of Japan (DBJ), Strategic support focused on human capital management through the DBJ Future Value Co-Creation Program |
Items this document does not state (8)
Ordinary incomeSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expenditures
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 increase in revenue was due to the conversion into revenue of orders received by the end of the previous fiscal year. Delays in construction progress resulted from continued adverse weather in September and delays in procuring materials for certain projects. Operating profit declined because costs were incurred ahead of revenue on specific projects, reducing their profitability.
How to read this page
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