Deterioration in profitability due to additional project costs and delivery delays
First written in FY2023. 3 of 7 entries say "Mitigated", first in FY2025-H1. Latest entry: 2026-11-12.
The whole theme swung hardest in 2024: 20 of 64 companies on the "Worse" side.
31 other companies' latest entry also says "Mitigated".
- FY2025WorsenedAnnual report
「The provision for expected losses on orders included in cost of sales was ¥17 million in the previous consolidated fiscal year and ¥346 million in the current consolidated fiscal year.」
The provision for expected losses on orders related to the risk of deteriorating project profitability increased from ¥17 million to ¥346 million. - FY2025-H1MitigatedAnnual report
「(Cloud Integration Business) During the interim consolidated accounting period, revenue and average revenue per customer increased as customer penetration progressed through an integrated sales-and-production structure. In addition, changes to the development schedules of some projects from the previous fiscal year and improved profitability at the subsidiary 株式会社ネクストスケープ resulted in revenue of ¥14,151 million, up 21.6% year on year, and segment profit of ¥2,982 million, up 85.9%.」
References to projects with changes to development schedules remain, while profitability at ネクストスケープ社 has improved and segment profit in the cloud integration business increased 85.9% year on year. This indicates an improvement in results relative to the previously reported deterioration in profitability caused by delivery schedule changes and project extensions. - FY2024-Q2WorsenedAnnual report
「(Cloud Integration Business) During the second quarter, projects increased and revenue expanded against a backdrop of strong cloud demand. However, costs increased because of changes to delivery schedules for some large projects and delays in projects at 株式会社ネクストスケープ, resulting in revenue of ¥11,633 million, up 7.6% year on year, and segment profit of ¥1,604 million, down 4.8%.」
Following the previous quarter, costs increased due to changes in delivery schedules and extensions of projects. This time, the company reported impacts on several large projects and projects for ネクストスケープ社, as well as a 4.8% year-on-year decline in segment profit. - FY2024-Q1MaterialisedAnnual report
「Costs increased due to changes in delivery schedules and extensions of certain projects, resulting in revenue of ¥5,653 million, up 15.6% year on year, and segment profit of ¥703 million, down 2.7%.」
While additional costs and delivery delays had previously been identified as risks to project profitability, the company has now reported actual cost increases and a decline in segment profit associated with changes in and extensions of delivery schedules for certain projects. - FY2023First statedAnnual report
「If additional costs arise from unforeseen events or other factors, or delivery is delayed due to an error by our group, project profitability may deteriorate from the initial forecast.」
The company identifies deteriorating project profitability due to additional costs and delivery delays as a risk and manages profitability through schedule and cost forecasts.