Risk of deteriorating profitability in construction projects
First written in FY2021. 12 of 17 entries say "Mitigated", first in FY2022-Q3. Latest entry: 2026-11-06.
The whole theme swung hardest in 2019: 6 of 17 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- 2026-11-06MitigatedResults
「In the Engineering & Services business, orders for construction projects remained strong, with orders received amounting to ¥24.399 billion, up 26.9% year on year.」
Orders received for construction projects remained strong, while operating profit increased 39.3% year on year due to higher net sales and improved profit margins. - FY2027-H1MitigatedAnnual report
「The Engineering & Services business maintained a high level of orders for construction projects, recording orders of ¥24,399 million, up 26.9% year on year. Sales were ¥12,037 million, up 17.0%, while operating profit was ¥1,496 million, up 39.3%, owing to higher sales and improved margins.」
Following a period in which declining profitability in construction projects affected performance, operating profit increased 39.3% year on year as orders and sales grew and margins improved, indicating continued improvement. - 2026-08-07MitigatedResults
「Operating profit amounted to ¥574 million, up 150.1% year on year, owing to higher net sales and improved profit margins.」
In the Engineering & Services business, orders for construction projects remained strong, and operating profit increased with improved profit margins. - FY2026MitigatedAnnual report
「Revenue was ¥24,346 million, down 0.2% year on year. In terms of profit and loss, operating profit was ¥3,697 million, up 8.5% year on year, due to an improved profit margin.」
In the Engineering & Services Business, operating profit increased 8.5% year on year due to an improved profit margin, compared with the period when declining profitability on construction projects was reported. - FY2025MitigatedAnnual report
「Orders received were ¥12,554 million, up 11.6% year on year, due to an increase in conveyance equipment construction for semiconductor manufacturing plants, primarily in Taiwan. Revenue was ¥10,368 million, up 21.6% year on year, and operating profit was ¥1,094 million, up 85.2% year on year, due to higher revenue.」
From the period when declining profitability on construction projects was reported, orders received, revenue and operating profit in the Engineering & Services Business have continued to increase due to an increase in conveyance equipment construction for semiconductor manufacturing plants and other projects. - FY2025-H1MitigatedAnnual report
「In the Engineering & Services Business, orders received were ¥12,554 million, up 11.6% year on year, due to an increase in conveyance equipment construction for semiconductor manufacturing plants, primarily in Taiwan. Revenue was ¥10,368 million, up 21.6% year on year, and operating profit was ¥1,094 million, up 85.2% year on year, due to higher revenue.」
The Engineering & Services Business recorded higher revenue and profit due to an increase in conveyance equipment construction for semiconductor manufacturing plants and other projects. Profit improvement has continued from the losses caused by declining profitability on construction projects described through the previous period. - FY2024MitigatedAnnual report
「In the Engineering & Services Business, revenue was ¥20,539 million, up 6.9% year on year, due to increases in conveyance equipment construction for semiconductor manufacturing plants in Taiwan and Japan and electrical equipment construction for public-sector demand. In terms of profit and loss, operating profit was ¥1,961 million, up 41.5% year on year, due to higher revenue.」
Compared with the situation through the previous quarter, when declining profitability on construction projects had been reported, full-year results showed higher revenue and operating profit driven by conveyance equipment construction for semiconductor manufacturing plants and other projects. - FY2024-Q3MitigatedAnnual report
「In the Engineering & Services Business, revenue was ¥13,290 million, up 16.5% year on year, due to increases in conveyance equipment construction for semiconductor manufacturing plants in Taiwan and Japan and electrical equipment construction for public-sector demand. In terms of profit and loss, operating profit was ¥893 million, compared with an operating loss of ¥9 million in the same quarter of the previous year, due to higher revenue.」
The Engineering & Services Business, which recorded an operating loss in the same period of the previous year, returned to operating profit. Higher revenue from conveyance equipment construction for semiconductor manufacturing plants and other projects, along with improved profit, was reported. - FY2024-Q2MitigatedAnnual report
「In the Engineering & Services Business, orders received were ¥11,249 million, down 6.0% year on year, due to a decrease in conveyance equipment construction for hospitals, although the Company received a series of orders for conveyance equipment construction at new plants being built by semiconductor manufacturers in Japan and overseas. Revenue was ¥8,529 million, up 11.8% year on year, due to increases in electrical equipment construction for public-sector demand and conveyance equipment construction for semiconductor manufacturing plants in Taiwan. In terms of profit and loss, operating profit was ¥590 million, compared with an operating loss of ¥185 million in the same quarter of the previous year, due to higher revenue.」
The Engineering & Services Business, which recorded an operating loss in the same period of the previous year, returned to operating profit. The Company received a series of orders for conveyance equipment construction at new plants for semiconductor manufacturers, and higher revenue and improved profit were reported. - FY2024-Q1MitigatedAnnual report
「In the Engineering & Services Business, revenue was ¥3,562 million, up 10.0% year on year, due to an increase in maintenance services. In terms of profit and loss, operating profit was ¥50 million, compared with an operating loss of ¥149 million in the same quarter of the previous year, due to higher revenue.」
The Engineering & Services Business moved from an operating loss of ¥149 million in the same period of the previous year to operating profit of ¥50 million due to an increase in maintenance services and higher revenue. The impact of deteriorating construction project profitability improved in this business. - FY2023-Q3RestatedAnnual report
「In the Engineering & Services Business, revenue was ¥11,403 million, down 3.8% year on year, due to a decrease in conveyance equipment construction for hospitals. In terms of profit and loss, the business posted an operating loss of ¥9 million, compared with operating profit of ¥847 million in the same quarter of the previous year, due to lower revenue and declining profitability on construction projects, among other factors.」
Declining profitability on construction projects continued, and the Engineering & Services Business moved from operating profit of ¥847 million in the same period of the previous year to an operating loss of ¥9 million. The impact of deteriorating construction project profitability continued to affect performance. - FY2023-Q2WorsenedAnnual report
「In the Support & Engineering Business, revenue was ¥7,631 million, down 2.4% year on year, due to a decrease in conveyance equipment construction for hospitals. In terms of profit and loss, the business posted an operating loss of ¥185 million, compared with operating profit of ¥448 million in the same quarter of the previous year, due to lower revenue and declining profitability on construction projects, among other factors.」
Declining profitability on construction projects resulted in an operating loss in the Support & Engineering Business, which deteriorated from operating profit of ¥448 million in the same period of the previous year to an operating loss of ¥185 million. - FY2023-Q1MitigatedAnnual report
「In the Power Electronics Equipment Business, operating profit was ¥1,110 million, compared with an operating loss of ¥386 million in the same quarter of the previous year, due to higher revenue and improved profitability on social infrastructure projects, among other factors.」
Improved profitability on social infrastructure projects caused the Power Electronics Equipment Business to move from an operating loss in the same period of the previous year to operating profit. The risk of deteriorating profitability on construction projects had improved, at least in this business. - FY2022-Q3MitigatedAnnual report
「In the Support & Engineering Business, revenue was ¥11,854 million, down 2.8% year on year. In terms of profit and loss, operating profit was ¥847 million, up 103.7% year on year, due to improved profitability on construction projects.」
Improved profitability on construction projects resulted in a 103.7% year-on-year increase in operating profit in the Support & Engineering Business. The impact related to construction project profitability continued to appear as an improvement from the previous quarter. - FY2022-Q2Construction project profitability improved in some businesses and deteriorated in othersAnnual report
「In the Power Electronics Equipment Business, operating profit was ¥774 million, down 29.5% year on year, due to higher construction costs in the Social Infrastructure Systems Division and other factors, despite higher revenue in the Clean Conveyance Equipment Division. In the Support & Engineering Business, revenue was ¥7,818 million, down 6.5% year on year. In terms of profit and loss, operating profit was ¥448 million, up 57.1% year on year, due to improved profitability on construction projects.」
While higher construction costs in the Social Infrastructure Systems Division reduced profit in the Power Electronics Equipment Business, improved profitability on construction projects increased profit in the Support & Engineering Business. The impact of construction project profitability differed by business. - FY2022-Q1MaterialisedAnnual report
「In the Power Electronics Equipment Business, in addition to lower revenue, increased construction costs in the Social Infrastructure Systems Division and other factors resulted in an operating loss of ¥386 million, compared with operating profit of ¥379 million in the same quarter of the previous year.」
Higher construction costs resulted in an operating loss in the Power Electronics Equipment Business, including the Social Infrastructure Systems Division, and the risk associated with deteriorating profitability on construction projects continued to affect performance in the current quarter. - FY2021MaterialisedAnnual report
「Although emergency measures to improve earnings were implemented to control costs, operating profit as a percentage of revenue was 5.6%, down 3.4 percentage points from the plan, partly due to deteriorating profitability on construction projects.」
It was stated that deteriorating profitability on construction projects had actually occurred as one of the factors behind the failure to achieve the operating profit margin target in the medium-term management plan.