Worth reading
77Important
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
-25
¥100 million (fiscal 2027 operating income target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales0.0%
基準 2,000Target2,000100 million
Operating profit-13.5%
基準 185Target160100 million
ROE-2.0pt
基準 10Target8%
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).
Total investment plan¥65 billion or more (total cash allocation)
Investment amount by sectorField Growth Investment / Amount ¥10 billion, Field Infrastructure investment / Amount ¥9 billion, Field Strategic investment (M&A) / Amount ¥24 billion (acquisition of BrHD shares)
Statements about the use of capital
Payout ratio / DOE policyA DOE (dividend on equity) of 3.5% or higher, continuing progressive dividends and maintaining a trend of dividend increases. The period covered is the 7th Medium-Term Management Plan period (fiscal 2025 to fiscal 2027).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 policyImplement flexible share buybacks. The shareholder returns chart in the presentation states that ¥2 billion will be allocated to share buybacks.
Key initiatives
01Actively direct the Group's management resources into growth areas and strengthen its earnings structure.
02Expand the scope of operations, centered on the maintenance business, and improve safety, quality and productivity by promoting digitalisation.
03Maintain and expand the top market share by enhancing product value and implementing marketing strategies.
04Actively enter new fields.
05Align people, assets, technology and capital with business strategy.
06Aim to increase orders and improve profitability through individual strategies for each product group.
07Support the Group's digitalisation efforts while developing new products and services to maintain and expand the business.
Plan assumptionsNew-build steel bridge order volumes are assumed to be approximately 100,000 tonnes per year., Demand related to civil engineering projects, including the Tokyo Gaikan Expressway and the Chuo Shinkansen maglev line, is expected to remain solid., Demand for semiconductor manufacturing equipment is forecast at ¥6,550.2 billion in fiscal 2026, ¥7,401.7 billion in fiscal 2027 and ¥7,771.8 billion in fiscal 2028., The ordering of the large-scale Osaka Bay Coastal Road West Extension cable-stayed bridge project has been pushed back to FY2028 or later.
Segment targetSegment Bridges / Net Sales ¥107 billion → ¥104 billion, Segment System building / Net Sales ¥64.0 billion → ¥60 billion, Segment Engineering / Net Sales ¥30 billion → ¥23.0 billion, Segment Advanced technologies and Other / Net Sales ¥6 billion → ¥6 billion
Size of the Target MarketMarket National Resilience / Magnitude Approximately ¥20 trillion / Source Basic Act for National Resilience and the 1st Medium-Term Plan for Implementing National Resilience (2026–2030), Market Expressway Renewal Project / Magnitude Approximately ¥7 trillion / Period Covered 2014–2030, Market Semiconductor and FPD manufacturing equipment / Magnitude ¥6,550.2 billion in fiscal 2026, ¥7,401.7 billion in fiscal 2027 and ¥7,771.8 billion in fiscal 2028 / Source Prepared by the Company based on the Semiconductor Equipment Association of Japan's "Semiconductor and FPD Manufacturing Equipment Demand Forecast (Fiscal 2026–Fiscal 2028)," announced in July 2026
Risks identified by the company
Uncertainty in the external environment, including geopolitical risks
Soaring materials prices, inflation and labour costs
Decline in order volumes in the new-build bridge market
Delayed recovery in the market for small and medium-sized factories and warehouses
Delays in the bidding and ordering of ODA projects
Risk of changes in the global situation
Descriptions regarding future forecasts may be affected by various risks and uncertainties
Reason for revision or withdrawal
Since the plan was formulated, the business environment has become more challenging than assumed at that time. In the new-build bridge market, order volumes are below plan because of higher construction costs, while recovery in the market for small and medium-sized factories and warehouses, the primary target market for the system-building business, has been delayed. Revenue is expected to remain at the initial target through the incremental revenue effect of M&A, but existing businesses are expected to see lower profit as conditions in the bridge business deteriorate. Accordingly, operating profit, ROE and EPS have been revised.
| Item | Details |
|---|---|
| Plan name | Seventh Medium-Term Management Plan |
| Plan period | From fiscal 2025 to fiscal 2027 |
| Progress against the plan | Partially revised |
| Sales Target | ¥2,000 100 million → ¥2,000 100 million（0.0%） |
| Operating profit target | ¥185 100 million → ¥160 100 million（-13.5%） |
| ROE target | 10% or higher → 8% or higher（-20%） |
| Payout ratio / DOE policy | A DOE (dividend on equity) of 3.5% or higher, continuing progressive dividends and maintaining a trend of dividend increases. The period covered is the 7th Medium-Term Management Plan period (fiscal 2025 to fiscal 2027). |
| Treasury share acquisition policy | Implement flexible share buybacks. The shareholder returns chart in the presentation states that ¥2 billion will be allocated to share buybacks. |
| Total investment plan | ¥65 billion or more (total cash allocation) |
| Investment amount by sector | Field Growth Investment / Amount ¥10 billion, Field Infrastructure investment / Amount ¥9 billion, Field Strategic investment (M&A) / Amount ¥24 billion (acquisition of BrHD shares) |
| Segment target | Segment Bridges / Net Sales ¥107 billion → ¥104 billion, Segment System building / Net Sales ¥64.0 billion → ¥60 billion, Segment Engineering / Net Sales ¥30 billion → ¥23.0 billion, Segment Advanced technologies and Other / Net Sales ¥6 billion → ¥6 billion |
| Plan assumptions | New-build steel bridge order volumes are assumed to be approximately 100,000 tonnes per year., Demand related to civil engineering projects, including the Tokyo Gaikan Expressway and the Chuo Shinkansen maglev line, is expected to remain solid., Demand for semiconductor manufacturing equipment is forecast at ¥6,550.2 billion in fiscal 2026, ¥7,401.7 billion in fiscal 2027 and ¥7,771.8 billion in fiscal 2028., The ordering of the large-scale Osaka Bay Coastal Road West Extension cable-stayed bridge project has been pushed back to FY2028 or later. |
| Key initiatives | Actively direct the Group's management resources into growth areas and strengthen its earnings structure., Expand the scope of operations, centered on the maintenance business, and improve safety, quality and productivity by promoting digitalisation., Maintain and expand the top market share by enhancing product value and implementing marketing strategies., Actively enter new fields., Align people, assets, technology and capital with business strategy., Aim to increase orders and improve profitability through individual strategies for each product group., Support the Group's digitalisation efforts while developing new products and services to maintain and expand the business. |
| Reason for revision or withdrawal | Since the plan was formulated, the business environment has become more challenging than assumed at that time. In the new-build bridge market, order volumes are below plan because of higher construction costs, while recovery in the market for small and medium-sized factories and warehouses, the primary target market for the system-building business, has been delayed. Revenue is expected to remain at the initial target through the incremental revenue effect of M&A, but existing businesses are expected to see lower profit as conditions in the bridge business deteriorate. Accordingly, operating profit, ROE and EPS have been revised. |
| Size of the Target Market | Market National Resilience / Magnitude Approximately ¥20 trillion / Source Basic Act for National Resilience and the 1st Medium-Term Plan for Implementing National Resilience (2026–2030), Market Expressway Renewal Project / Magnitude Approximately ¥7 trillion / Period Covered 2014–2030, Market Semiconductor and FPD manufacturing equipment / Magnitude ¥6,550.2 billion in fiscal 2026, ¥7,401.7 billion in fiscal 2027 and ¥7,771.8 billion in fiscal 2028 / Source Prepared by the Company based on the Semiconductor Equipment Association of Japan's "Semiconductor and FPD Manufacturing Equipment Demand Forecast (Fiscal 2026–Fiscal 2028)," announced in July 2026 |
| Risks identified | Uncertainty in the external environment, including geopolitical risks, Soaring materials prices, inflation and labour costs, Decline in order volumes in the new-build bridge market, Delayed recovery in the market for small and medium-sized factories and warehouses, Delays in the bidding and ordering of ODA projects, Risk of changes in the global situation, Descriptions regarding future forecasts may be affected by various risks and uncertainties |
| Date of board resolution | 27 October 2026 |
| Publication date | 27 October 2026 |
Items this document does not state (7)
Operating profit margin targetNet income targetROIC targetCost of capitalSelf-assessment of PBR and share priceNon-financial targetsResults under the previous plan
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 business environment has become more challenging than assumed when the plan was formulated. In the new-build bridge market, order volumes are below plan because of higher construction costs, while recovery in the market for small and medium-sized factories and warehouses has been delayed in the system-building business. Revenue is expected to be maintained through the incremental revenue effect of M&A, but existing businesses are expected to see lower profit as conditions in the bridge business deteriorate. Accordingly, operating profit and other targets have been revised.
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