Worth reading
48Recurring
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
22
¥ million (year-on-year decrease in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFirst quarter of the fiscal year ending December 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,537 million+2.8%
Operating profit¥269 million-7.8%
Ordinary income¥264 million-10.6%
Net income¥180 million -30.2%net income attributable to owners of the parent
Operating profit margin10.6%, down 1.2 percentage points year on year
Selling, general and administrative expensesA ¥62 million profit-decreasing factor was disclosed among the factors affecting the change. The SG&A-to-sales ratio was Not disclosed
Results for the three months of the current quarterQ1 FY2026 consolidated revenue of ¥2,537 million, operating profit of ¥269 million, ordinary profit of ¥264 million and net income attributable to owners of the parent of ¥180 million
Full-year earnings forecast
Net Sales
¥10,500 million
Operating profit
¥800 million
Ordinary income
¥778 million
Profit attributable to owners of the parent
¥524 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Revenue increase¥75 million
- Labor Costs¥-10 million
- Depreciation¥-28 million
- Selling, general and administrative expenses¥-62 million
- Other¥2 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Assumes that demand for corporate production activities and facility upgrades will gradually recover
- Assumes that market prices for ferrous scrap and other materials will remain at current levels in fiscal 2026
- Assumes that non-ferrous metal prices will moderate somewhat in 2026
New initiatives
- Preparation to open a new plant on approximately 900 tsubo of factory land acquired in Suminoe-ku, Osaka City, with operations targeted to begin during fiscal 2027
- Plans to increase staffing at the Tokyo and Osaka branches and consider opening branches in other cities
- Expansion of sales locations, securing new yards and active pursuit of M&A
- Development and patent application for a pile extraction method using ultra-large heavy machinery
- Calculation and provision to customers of CO2 emissions from each construction project and the amount of CO2 reduction contributed through recycling
Segment results
Demolition Business
Net Sales
¥595 million
Year-on-year (%)-30.1
Environmental Business
Net Sales
¥538 million
Year-on-year (%)6.8
Metals Business
Net Sales
¥1,403 million
Year-on-year (%)26.2
Number of employees
Number of Employees186 People
Record date31 March 2026
Annual Dividend
Annual dividend per share¥32
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | ¥2,537 million (YoY +2.8%) |
| Operating profit | ¥269 million (YoY -7.8%) |
| Ordinary income | ¥264 million (YoY -10.6%) |
| Net income | ¥180 million (net income attributable to owners of the parent) (YoY -30.2%) |
| Operating profit margin | 10.6%, down 1.2 percentage points year on year |
| Selling, general and administrative expenses | A ¥62 million profit-decreasing factor was disclosed among the factors affecting the change. The SG&A-to-sales ratio was Not disclosed |
| Results for the three months of the current quarter | Q1 FY2026 consolidated revenue of ¥2,537 million, operating profit of ¥269 million, ordinary profit of ¥264 million and net income attributable to owners of the parent of ¥180 million |
| Full-year earnings forecast | Net Sales ¥10,500 million / Operating profit ¥800 million / Ordinary income ¥778 million / Profit attributable to owners of the parent ¥524 million |
| Segment results | Demolition Business Net Sales ¥595 million / Year-on-year (%) -30.1 / Profit Not disclosed / Environmental Business Net Sales ¥538 million / Year-on-year (%) 6.8 / Profit Not disclosed / Metals Business Net Sales ¥1,403 million / Year-on-year (%) 26.2 / Profit Not disclosed |
| Breakdown of Factors Affecting the Change | Factors Revenue increase / Amount ¥75 million, Factors Labor Costs / Amount ¥-10 million, Factors Depreciation / Amount ¥-28 million, Factors Selling, general and administrative expenses / Amount ¥-62 million, Factors Other / Amount ¥2 million |
| Number of employees | Number of Employees 186 People / Record date 31 March 2026 |
| Assumptions Underlying the Business Outlook | Assumes that demand for corporate production activities and facility upgrades will gradually recover, Assumes that market prices for ferrous scrap and other materials will remain at current levels in fiscal 2026, Assumes that non-ferrous metal prices will moderate somewhat in 2026 |
| Annual Dividend | Annual dividend per share ¥32 / Interim and Year-End Breakdown Not disclosed |
| New initiatives | Preparation to open a new plant on approximately 900 tsubo of factory land acquired in Suminoe-ku, Osaka City, with operations targeted to begin during fiscal 2027, Plans to increase staffing at the Tokyo and Osaka branches and consider opening branches in other cities, Expansion of sales locations, securing new yards and active pursuit of M&A, Development and patent application for a pile extraction method using ultra-large heavy machinery, Calculation and provision to customers of CO2 emissions from each construction project and the amount of CO2 reduction contributed through recycling |
Items this document does not state (15)
Gross Profit MarginProgress against full-year forecastSelf-assessment against the planKey KPIsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
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 Environmental business reported lower profit due to the reversal of the previous fiscal year's high-margin projects, while the Metals business reported lower profit due to a decline in the processing of obsolete scrap generated by large-scale demolition projects in neighboring areas and other sources. Profit was also reduced by higher labor and SG&A expenses due to an increase in employees and other factors, higher depreciation expenses following the additional introduction of ultra-large demolition machinery, higher borrowing interest expenses related to capital investment, and the reversal of the gain on bargain purchase recognized in the previous fiscal year in connection with the acquisition of a subsidiary.
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