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How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales-0.0%
基準 2,026Target2,025Hundreds of millions of yen
Operating profit-0.0%
基準 2,026Target2,025Hundreds of millions of yen
Operating profit margin-1.0pt
基準 2,026Target2,025%
ROE-1.0pt
基準 2,026Target2,025%
ROIC-1.0pt
基準 2,026Target2,025%
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).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planRevenue of ¥1 trillion or more, operating profit of ¥100 billion or more, operating margin of 10% or more, ROE of 10% or more, and ROIC of 7% or more (initial plan for FY2026) → Revenue of ¥906.0 billion, operating profit of ¥70 billion, operating margin of 7.7%, ROE of 2.6%, and ROIC of 4.7% (forecast for FY2025)-0.0%Calculated from the two disclosed figures
Total investment plan¥360 billion (at the time the '26 Medium-Term Management Plan was formulated, cumulative total over 3 years) / ¥460 billion (actual results and outlook as of the present)
Investment amount by sectorField Acquisition of 1 Grimes aggregate quarry and 1 ready-mixed concrete plant / Amount $160 million / Timing First half of 2024, Field Addition of 2 silos at the Stockton terminal / Amount $40 million / Timing Scheduled for completion in the second half of 2026, Field Acquisition of 41 Vulcan ready-mixed concrete plants / Amount $712 million / Timing Scheduled to close in the first half of 2026
Statements about the use of capital
Payout ratio / DOE policyTotal payout ratio of 33% or more and annual dividends of ¥80 or more per share. From FY2025 onward, the company will continue stable dividends with annual dividends of at least ¥100 per share as the floor, and will consider strengthening measures such as progressive dividends.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 company will conduct flexible share buybacks. It repurchased ¥15 billion of its own shares in FY2024 and plans to continue conducting flexible buybacks.
Self-assessment of PBR and share priceThe company aims to achieve a PBR above 1x at an early date by improving ROE and PER. It defines PBR as ROE × PER, but the current PBR is Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Revitalization of the domestic business
02Further advancement of the global strategy
03Promotion of sustainability management and contribution to carbon neutrality
04Appropriate pricing of the company's products
05Withdrawal from unprofitable businesses
06Redefinition of affiliated companies
07Sale of real estate and shareholdings
08Further growth of the U.S. business
09Review of the dividend policy
10Share repurchases
11Review and strengthening of the engagement framework
12Review of the domestic supply chain and pricing policy
13Early realization of synergies through the acquisition of Tokuyama Corporation's cement sales rights
14Realization of synergies through vertical integration
15Continued strategic growth investment exceeding the cost of capital
16Expansion of earnings from the Philippine and Vietnamese businesses
17Deepening partnerships with Indonesia's SIG/SBI, including the ground improvement business and exports to the U.S.
18Manufacture of blended cement in Japan and overseas, and strengthening of sales expansion capabilities in Japan and overseas
19Sustainable achievement of ROE of 10% or more
20Consideration of introducing ROIC by business segment
21Asset sales and business reorganization
22Consideration of strengthening dividend measures, including progressive dividends
23Redefinition of the skills matrix based on the medium- to long-term strategy
24Initiatives concerning diversity among directors
Plan assumptionsDomestic cement demand was 35 million tonnes when the '26 Medium-Term Management Plan was formulated, compared with the company's forecast of 30.3 million tonnes for FY2025, A full-fledged recovery in U.S. cement demand is expected from 2027 onward, From 2026 onward, the Philippines is assumed to achieve economic growth with real GDP growth of 5-6%, A time lag of approximately 6 months is expected between lower interest rates and a recovery in U.S. real estate and construction demand, Philippine cement demand is expected to expand over the medium to long term
Non-financial targetsIndicator name Number of U.S. ready-mixed concrete sites / Target value From 69 plants to 110 plants / Timing Scheduled to close in the first half of 2026, Indicator name U.S. ready-mixed concrete sales volume / Target value From 5.5 million cy to 8.2 million cy / Timing Scheduled to close in the first half of 2026, Indicator name Emissions intensity / Target value Reduction of at least 20% from 2000 levels / Timing Not disclosed, Indicator name Number of meetings with investors / Target value 290 (projected) / Timing FY2025
Size of the Target MarketDomestic cement demand was 35 million tonnes when the '26 Medium-Term Management Plan was formulated, compared with the company's forecast of 30.3 million tonnes for FY2025. Cement imports into the Philippines increased from approximately 6.5 million tonnes in 2021 to approximately 7.6 million tonnes in 2024. The company also presented trends in U.S. cement demand. Sources: the Portland Cement Association's Summer Forecast (2 August 2025), the Bangko Sentral ng Pilipinas, CeMAP, and the company's estimates.
Risks identified by the company
Structural decline in domestic cement demand
Fewer operating days as the five-day workweek becomes more widespread in the construction industry
Higher construction costs
Labor shortages, declining employment, and an aging workforce in the construction industry
Adverse weather conditions, including extreme heat and torrential rain
Weakness in U.S. residential and commercial real estate markets due to high interest rates
A time lag between lower interest rates and a recovery in demand in the U.S.
Stagnant demand in the Philippines due to high interest rates
Increased cement imports and intensifying sales competition in the Philippines
Impairment losses in the Philippine business
Uncertainty regarding the outlook for procuring inexpensive green hydrogen and other inputs for CCUS
Delays in developing domestic CCS infrastructure and an inexpensive CO2 transportation network
Immature mechanisms for passing decarbonization costs through to cement prices
Reason for revision or withdrawal
In light of structural factors behind the decline in domestic demand, a slowdown in the U.S. market, unexpectedly stagnant demand and increased supply in the Philippines, and uncertainty surrounding the conditions and economic viability for implementing CCUS, the company has outlined future policies focused on profitability, cost reductions, asset sales, business reorganization, and stronger shareholder returns.
| Item | Details |
|---|---|
| Plan name | '26 Medium-Term Management Plan |
| Plan period | FY2024–FY2026 |
| Progress against the plan | Partially revised |
| Sales Target | ¥1 trillion or more (initial plan for FY2026) → ¥906.0 billion (forecast for FY2025) |
| Operating profit target | ¥100 billion or more (initial plan for FY2026) → ¥70 billion (forecast for FY2025) |
| Operating profit margin target | 10% or more (initial plan for FY2026) → 7.7% (forecast for FY2025) |
| ROE target | 10% or more (initial plan for FY2026) → 2.6% (forecast for FY2025) |
| ROIC target | 7% or more (initial plan for FY2026) → 4.7% (forecast for FY2025) |
| Payout ratio / DOE policy | Total payout ratio of 33% or more and annual dividends of ¥80 or more per share. From FY2025 onward, the company will continue stable dividends with annual dividends of at least ¥100 per share as the floor, and will consider strengthening measures such as progressive dividends. |
| Treasury share acquisition policy | The company will conduct flexible share buybacks. It repurchased ¥15 billion of its own shares in FY2024 and plans to continue conducting flexible buybacks. |
| Self-assessment of PBR and share price | The company aims to achieve a PBR above 1x at an early date by improving ROE and PER. It defines PBR as ROE × PER, but the current PBR is Not disclosed. |
| Total investment plan | ¥360 billion (at the time the '26 Medium-Term Management Plan was formulated, cumulative total over 3 years) / ¥460 billion (actual results and outlook as of the present) |
| Investment amount by sector | Field Acquisition of 1 Grimes aggregate quarry and 1 ready-mixed concrete plant / Amount $160 million / Timing First half of 2024, Field Addition of 2 silos at the Stockton terminal / Amount $40 million / Timing Scheduled for completion in the second half of 2026, Field Acquisition of 41 Vulcan ready-mixed concrete plants / Amount $712 million / Timing Scheduled to close in the first half of 2026 |
| Non-financial targets | Indicator name Number of U.S. ready-mixed concrete sites / Target value From 69 plants to 110 plants / Timing Scheduled to close in the first half of 2026, Indicator name U.S. ready-mixed concrete sales volume / Target value From 5.5 million cy to 8.2 million cy / Timing Scheduled to close in the first half of 2026, Indicator name Emissions intensity / Target value Reduction of at least 20% from 2000 levels / Timing Not disclosed, Indicator name Number of meetings with investors / Target value 290 (projected) / Timing FY2025 |
| Plan assumptions | Domestic cement demand was 35 million tonnes when the '26 Medium-Term Management Plan was formulated, compared with the company's forecast of 30.3 million tonnes for FY2025, A full-fledged recovery in U.S. cement demand is expected from 2027 onward, From 2026 onward, the Philippines is assumed to achieve economic growth with real GDP growth of 5-6%, A time lag of approximately 6 months is expected between lower interest rates and a recovery in U.S. real estate and construction demand, Philippine cement demand is expected to expand over the medium to long term |
| Key initiatives | Revitalization of the domestic business, Further advancement of the global strategy, Promotion of sustainability management and contribution to carbon neutrality, Appropriate pricing of the company's products, Withdrawal from unprofitable businesses, Redefinition of affiliated companies, Sale of real estate and shareholdings, Further growth of the U.S. business, Review of the dividend policy, Share repurchases, Review and strengthening of the engagement framework, Review of the domestic supply chain and pricing policy, Early realization of synergies through the acquisition of Tokuyama Corporation's cement sales rights, Realization of synergies through vertical integration, Continued strategic growth investment exceeding the cost of capital, Expansion of earnings from the Philippine and Vietnamese businesses, Deepening partnerships with Indonesia's SIG/SBI, including the ground improvement business and exports to the U.S., Manufacture of blended cement in Japan and overseas, and strengthening of sales expansion capabilities in Japan and overseas, Sustainable achievement of ROE of 10% or more, Consideration of introducing ROIC by business segment, Asset sales and business reorganization, Consideration of strengthening dividend measures, including progressive dividends, Redefinition of the skills matrix based on the medium- to long-term strategy, Initiatives concerning diversity among directors |
| Results under the previous plan | Revenue of ¥1 trillion or more, operating profit of ¥100 billion or more, operating margin of 10% or more, ROE of 10% or more, and ROIC of 7% or more (initial plan for FY2026) → Revenue of ¥906.0 billion, operating profit of ¥70 billion, operating margin of 7.7%, ROE of 2.6%, and ROIC of 4.7% (forecast for FY2025) |
| Reason for revision or withdrawal | In light of structural factors behind the decline in domestic demand, a slowdown in the U.S. market, unexpectedly stagnant demand and increased supply in the Philippines, and uncertainty surrounding the conditions and economic viability for implementing CCUS, the company has outlined future policies focused on profitability, cost reductions, asset sales, business reorganization, and stronger shareholder returns. |
| Size of the Target Market | Domestic cement demand was 35 million tonnes when the '26 Medium-Term Management Plan was formulated, compared with the company's forecast of 30.3 million tonnes for FY2025. Cement imports into the Philippines increased from approximately 6.5 million tonnes in 2021 to approximately 7.6 million tonnes in 2024. The company also presented trends in U.S. cement demand. Sources: the Portland Cement Association's Summer Forecast (2 August 2025), the Bangko Sentral ng Pilipinas, CeMAP, and the company's estimates. |
| Risks identified | Structural decline in domestic cement demand, Fewer operating days as the five-day workweek becomes more widespread in the construction industry, Higher construction costs, Labor shortages, declining employment, and an aging workforce in the construction industry, Adverse weather conditions, including extreme heat and torrential rain, Weakness in U.S. residential and commercial real estate markets due to high interest rates, A time lag between lower interest rates and a recovery in demand in the U.S., Stagnant demand in the Philippines due to high interest rates, Increased cement imports and intensifying sales competition in the Philippines, Impairment losses in the Philippine business, Uncertainty regarding the outlook for procuring inexpensive green hydrogen and other inputs for CCUS, Delays in developing domestic CCS infrastructure and an inexpensive CO2 transportation network, Immature mechanisms for passing decarbonization costs through to cement prices |
| Publication date | 30 March 2026 |
Items this document does not state (4)
Net income targetCost of capitalSegment targetDate of board resolution
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 cited domestic cement demand falling below the initial plan, continued market stagnation in the U.S. due to high interest rates, and impairment losses recorded in the Philippines amid stagnant demand and intensifying competition from increased cement imports. It also highlighted achievements including an ¥18.5 billion annual profit improvement from domestic cement price increases and vertical integration of its U.S. business.
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