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Oi Electric (6822) · RiskWorsenedLatest Results briefing materials (2026-07-29): "Mitigated"

Declining profitability and impairment in the network construction and maintenance business

First written in FY2016. 23 of 37 entries say "Mitigated", first in FY2018-Q1. Latest entry: 2026-07-29.

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ProgressHeldSoftenedWorseMitigatedFY2018-Q1 – FY2019-Q3MitigatedFY2024-Q2 – FY20252016: 320162017: 420172018: 420182019: 420192020: 420202021: 420212022: 420222023: 220232024: 320242025: 220252026: 32026
Same theme, other companies
Scale and Profit Growth in the Network Construction and Maintenance BusinessA theme 2 companies write about · 2 as a headwind · 1 as a tailwind

0 other companies' latest entry also says "Mitigated".

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  1. 2026-07-29MitigatedResults briefing materials

    「In terms of profit and loss, the loss decreased year on year due to the revision of construction unit prices and other factors.」

    The segment loss in network construction and maintenance narrowed year on year, easing the risk of deteriorating profitability as of the first quarter.
  2. FY2026WorsenedAnnual report

    「Segment profit was ¥392 million, down 34.6% year on year due to the effects of lower sales and higher costs. The land in question had been sold during the consolidated fiscal year. The impairment loss recognized during the consolidated fiscal year was ¥8.304 million.」

    Profit in network construction and maintenance declined, and an impairment loss of ¥8.304 million was recognized on land scheduled for disposal in the segment.
  3. 2026-05-15MitigatedEarnings

    「Segment profit was ¥392 million, down 34.6% year on year, due to the impact of lower sales and higher costs.」

    Network construction and maintenance remained profitable but recorded lower profit year on year. The risk of deteriorating profitability eased from a loss-making position, although negative factors remain.
  4. FY2026-H1WorsenedAnnual report

    「Due mainly to lower sales in the telecommunications line construction and maintenance business, sales declined 2.4% year on year to ¥4.593 billion. Segment loss was ¥166 million, an increase of ¥154 million in loss year on year, reflecting the decline in sales. An impairment loss on fixed assets was recognized in the network construction and maintenance segment. The impairment loss recognized in the interim consolidated accounting period was ¥8.304 million.」

    The loss in network construction and maintenance widened, and an impairment loss of ¥8.304 million on fixed assets was also recognized in the segment. The decline in profitability and impairment risk worsened again in the interim period.
  5. FY2025MitigatedAnnual report

    「Although revenue from the telecommunications line construction and maintenance business increased, revenue from the telecommunications equipment construction and maintenance business declined, resulting in revenue of ¥12,236 million, down 3.1% year on year. Segment profit was ¥600 million, up 36.8% year on year, due to price reviews, cost reductions and other measures despite the decline in revenue.」

    Although sales declined, segment profit in network construction and maintenance increased from ¥438 million to ¥600 million, further easing the risk of declining profitability.
  6. FY2025-H1MitigatedAnnual report

    「Revenue increased 4.2% year on year to ¥4,706 million due to higher revenue from the telecommunications line construction and maintenance business. Segment loss was ¥12 million, a decrease of ¥220 million from the same period of the previous year, accompanying the increase in revenue.」

    The segment loss in network construction and maintenance narrowed by ¥220 million year on year, substantially easing the decline in profitability. However, the segment still reported a loss.
  7. FY2024MitigatedAnnual report

    「Revenue was ¥12,633 million, up 9.4% year on year, mainly due to an increase in telecommunications equipment construction for the power sector. Segment profit was ¥438 million, up 110.7% year on year.」

    The risk of declining profitability in the network construction and maintenance business eased from the previous fiscal year due to higher sales and a substantial increase in profit.
  8. FY2024-Q3MitigatedAnnual report

    「Revenue increased 3.0% year on year to ¥7,545 million due to an increase in telecommunications equipment construction. Segment loss was ¥49 million, a decrease of ¥127 million from the same period of the previous year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥127 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  9. FY2024-Q2MitigatedAnnual report

    「Segment results were a loss of ¥232 million, a reduction of ¥39 million in loss year on year, despite lower sales, due to an improved cost ratio.」

    Network construction and maintenance reported lower sales, but the segment loss narrowed by ¥39 million year on year due to an improved cost ratio, partially easing the decline in profitability. However, it remains loss-making.
  10. FY2024-Q1WorsenedAnnual report

    「Revenue declined 12.3% year on year to ¥1,897 million due to decreases in telecommunications line construction and maintenance and base-station construction. Segment loss was ¥249 million, an increase of ¥156 million from the same period of the previous year.」

    The network construction and maintenance business reported lower sales and an expanded segment loss, again worsening the risk of declining profitability.
  11. FY2023-Q2MitigatedAnnual report

    「Although base-station-related construction increased, communications equipment construction declined, resulting in revenue of ¥4,593 million, down 0.3% year on year. The segment posted a loss of ¥272 million, a reduction in the loss of ¥55 million from the previous fiscal year.」

    The segment loss in network construction and maintenance narrowed by ¥55 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  12. FY2023-Q1MitigatedAnnual report

    「Due to an increase in base-station-related construction, revenue rose 3.1% year on year to ¥2,164 million. The segment posted a loss of ¥93 million, a reduction in the loss of ¥123 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥123 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  13. FY2022WorsenedAnnual report

    「Although base-station-related construction increased, sales declined 1.7% year on year to ¥12.046 billion because communications equipment construction for utilities decreased. Segment profit was ¥307 million, down 17.3% year on year, due to increases in material and subcontracting costs.」

    Network construction and maintenance remained profitable, but sales and segment profit declined from the previous year, again worsening the risk of declining profitability.
  14. FY2022-Q3MitigatedAnnual report

    「Due mainly to increases in communications equipment construction for carriers and base-station-related construction, sales rose 17.0% year on year to ¥7.557 billion. Segment loss was ¥157 million, a reduction of ¥219 million in loss year on year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥219 million year on year. However, it still reported a loss of ¥157 million.
  15. FY2022-Q2MitigatedAnnual report

    「Primarily due to an increase in communications equipment construction for telecom carriers, revenue rose 21.1% year on year to ¥4,609 million. The segment posted a loss of ¥327 million, a reduction in the loss of ¥130 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥130 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  16. FY2022-Q1MitigatedAnnual report

    「Primarily due to an increase in communications equipment construction for telecom carriers, revenue rose 19.2% year on year to ¥2,099 million. The segment posted a loss of ¥216 million, a reduction in the loss of ¥110 million from the previous fiscal year.」

    Higher sales and a narrower segment loss in network construction and maintenance partially eased the decline in profitability. However, the segment remains loss-making.
  17. FY2021MitigatedAnnual report

    「Due to an increase in communications equipment construction, sales rose 0.6% year on year to ¥12.248 billion. Segment profit was ¥372 million, an increase of ¥187 million year on year, due to a higher proportion of high-margin projects and the effects of cost reductions in labor and overhead expenses.」

    Network construction and maintenance reported sales of ¥12.248 billion and segment profit of ¥372 million, an increase from the previous year's profit of ¥184 million. The decline in profitability eased for the full year.
  18. FY2021-Q3WorsenedAnnual report

    「Due to a decline in orders and delays in the timing of sales caused by COVID-19, communications-line construction for telecom carriers and maintenance for power utilities declined, and revenue fell 8.2% year on year to ¥6,458 million. The segment posted a loss of ¥376 million as revenue declined, an increase in the loss of ¥52 million from the previous fiscal year.」

    Network construction and maintenance reported lower sales, and the segment loss increased by ¥52 million year on year, worsening the decline in profitability.
  19. FY2021-Q2WorsenedAnnual report

    「Due to a decline in orders and delays in the timing of sales caused by COVID-19, revenue fell 15.4% year on year to ¥3,806 million. The segment posted a loss of ¥457 million as revenue declined, an increase in the loss of ¥140 million from the previous fiscal year.」

    Sales in network construction and maintenance declined 15.4%, and the segment loss increased by ¥140 million year on year. The decline in profitability has worsened.
  20. FY2021-Q1MitigatedAnnual report

    「Due to an increase in communications equipment and communications-line construction, revenue rose 8.1% year on year to ¥1,761 million. The segment posted a loss of ¥327 million, a reduction in the loss of ¥2 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥2 million year on year, slightly easing the decline in profitability. However, it remains loss-making.
  21. FY2020WorsenedAnnual report

    「Due to increases in communications-line construction and maintenance for power utilities and telecom carriers, as well as base-station-related construction and maintenance, revenue was ¥12,180 million, up 7.6% year on year. Segment profit was ¥184 million, down ¥14 million from the previous fiscal year.」

    Network construction and maintenance remained profitable, but segment profit declined from ¥198 million in the previous year to ¥184 million, leaving a risk of further declining profitability.
  22. FY2020-Q3MitigatedAnnual report

    「Due to increases in communications-line construction and maintenance for power utilities and telecom carriers, as well as base-station-related construction and maintenance, revenue rose 7.5% year on year to ¥7,038 million. The segment posted a loss of ¥324 million, a reduction in the loss of ¥57 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥57 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  23. FY2020-Q2MitigatedAnnual report

    「Due to increases in the installation of telecommunications and electrical equipment and in communications-line construction and maintenance for telecom carriers, revenue rose 12.4% year on year to ¥4,498 million. The segment posted a loss of ¥317 million, a reduction in the loss of ¥69 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥69 million year on year, partially easing the decline in profitability. However, it remains loss-making.
  24. FY2020-Q1WorsenedAnnual report

    「Due to a decline in communications equipment construction for power utilities, revenue fell 5.7% year on year to ¥1,628 million. The segment posted a loss of ¥329 million, an increase in the loss of ¥15 million from the previous fiscal year.」

    Network construction and maintenance reported lower sales, and the segment loss widened year on year, worsening the decline in profitability. The segment remains loss-making.
  25. FY2019WorsenedAnnual report

    「Due to an increase in telecommunications line construction for carriers, sales were ¥11.319 billion, up 2.0% year on year. Although cost reductions under the ongoing structural reforms continued to have an effect, segment profit was ¥198 million, down 47.1% year on year, because the number of projects with high subcontracting-cost ratios increased compared with the previous year.」

    Although sales increased, segment profit was ¥198 million, down 47.1% year on year, due to an increase in projects with high subcontracting-cost ratios, again indicating declining profitability.
  26. FY2019-Q3MitigatedAnnual report

    「Due to an increase in communications-line construction and maintenance for telecom carriers, revenue was ¥6,545 million, up 4.0% year on year. The segment posted a loss of ¥381 million, a reduction in the loss of ¥46 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥46 million year on year, partially easing the decline in profitability. However, it still reported a loss.
  27. FY2019-Q2MitigatedAnnual report

    「Although communications-line and equipment construction for power utilities declined, communications-line construction and maintenance for telecom carriers increased, resulting in revenue of ¥4,001 million, up 1.5% year on year. The segment posted a loss of ¥386 million, a reduction in the loss of ¥114 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥114 million year on year, partially easing the decline in profitability. However, it still reported a loss.
  28. FY2019-Q1MitigatedAnnual report

    「Although communications-line and equipment construction for power utilities declined, communications-line construction and maintenance for telecom carriers increased, resulting in revenue of ¥1,727 million, up 5.6% year on year. The segment posted a loss of ¥314 million, a reduction in the loss of ¥72 million from the previous fiscal year.」

    Network construction and maintenance reported higher sales, and the segment loss narrowed by ¥72 million year on year. However, it still reported a loss of ¥314 million.
  29. FY2018MitigatedAnnual report

    「Due to an increase in orders and the acceleration of some construction projects for communications equipment and communications lines for power utilities and telecom carriers, revenue was ¥11,101 million, up 9.7% year on year. Segment profit was ¥375 million, as the increase in sales and changes in the sales mix within the construction business improved profitability, while cost reductions in materials, subcontracting and other expenses implemented as improvement measures also produced results, up ¥461 million year on year.」

    The network construction and maintenance segment turned from a loss of ¥86 million in the previous year to a profit of ¥375 million, indicating improvement from higher sales, changes in the project mix, and reductions in material and subcontracting costs.
  30. FY2018-Q3MitigatedAnnual report

    「Due to an increase in optical telecommunications line construction, sales rose 4.1% year on year to ¥6.291 billion. Segment loss was ¥427 million, a reduction of ¥139 million in loss year on year.」

    Network construction and maintenance reported higher sales due to an increase in optical telecommunications line construction, and the segment loss narrowed by ¥139 million year on year. However, it still reported a loss of ¥427 million.
  31. FY2018-Q2MitigatedAnnual report

    「Due to an increase in optical telecommunications line construction, sales rose 13.5% year on year to ¥3.943 billion. Segment loss was ¥501 million, a reduction of ¥240 million in loss year on year.」

    Sales in network construction and maintenance rose 13.5% year on year due to an increase in optical telecommunications line construction, and the segment loss narrowed by ¥240 million year on year. However, it still reported a loss of ¥501 million.
  32. FY2018-Q1MitigatedAnnual report

    「Due to an increase in optical telecommunications line construction, sales rose 11.1% year on year to ¥1.635 billion. Segment loss was ¥386 million, a reduction of ¥74 million in loss year on year.」

    Network construction and maintenance reported higher sales due to an increase in optical telecommunications line construction, and the segment loss narrowed by ¥74 million year on year. However, it still reported a loss of ¥386 million.
  33. FY2017WorsenedAnnual report

    「Due to a decrease in disaster-prevention-related construction, sales were ¥10.115 billion, down 6.8% year on year. Segment profit and loss was a loss of ¥86 million, reflecting the impact of the decline in sales volume, a reduction of ¥130 million in loss year on year.」

    Network construction and maintenance reported lower full-year sales, and segment results turned to a loss of ¥86 million. In addition, an impairment loss of ¥18.938 million was recognized on certain operating assets.
  34. FY2017-Q3WorsenedAnnual report

    「Due to a decrease in information and communications-related construction for utilities and carriers, sales declined 4.7% year on year to ¥6.041 billion. Although the Company pursued profitability improvements through cost reductions and the development of small-lot projects, the decline in sales volume was substantial, resulting in a segment loss of ¥567 million, an increase of ¥170 million in loss year on year.」

    Network construction and maintenance continued to report lower sales and a loss, with the segment loss increasing by ¥170 million year on year.
  35. FY2017-Q2WorsenedAnnual report

    「Due to a decrease in information and communications-related construction for utilities and carriers and the timing shift of optical network-related construction, sales declined 18.3% year on year to ¥3.473 billion. Although the Company pursued profitability improvements through cost reductions and the development of small-lot projects, the decline in sales volume was substantial, resulting in a segment loss of ¥741 million, an increase of ¥131 million in loss year on year.」

    Due to a decrease in construction for utilities and carriers and the timing shift of optical network construction, sales declined 18.3%, while the segment loss increased by ¥131 million year on year.
  36. FY2017-Q1WorsenedAnnual report

    「Due to a decrease in the number of telecommunications line construction projects and the deferral of certain projects, sales declined 26.3% year on year to ¥1.472 billion. Segment loss was ¥460 million, roughly unchanged from the same period of the previous year, as fixed-cost reductions and other measures improved profitability.」

    Sales in network construction and maintenance declined 26.3%, while the segment loss remained roughly unchanged from the same period of the previous year.
  37. FY2016MaterialisedAnnual report

    「For certain operating assets in the network construction and maintenance business, the Company reviewed its future plans in light of the business environment and reduced their carrying value to recoverable value due to declining profitability and continuing declines in land prices. The resulting ¥814.926 million reduction was recognized as an impairment loss under extraordinary losses.」

    Sales in the network construction and maintenance segment declined 3.9% due to the impact of restrained ordering.
Moved together

"Expansion of the Network Construction and Maintenance Business and Profit Growth" moved the same way as this thread, in the same document, in 23 of its 37 moves.

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  1. ★This thread
  2. 1Expansion of the Network Construction and Maintenance Business and Profit Growth23×
  3. 2First-Half Consolidated Results: Lower Revenue and Shift to an Operating Loss15×
  4. 3Additional Costs and Construction Loss Risk on Awarded Projects12×
  5. 4Strengthening Pricing Responsiveness and Cost Competitiveness11×
  6. 5Financing Risk from Financial Institutions11×
  7. 6Response to Business Related to Smart Grids and Smart Meters10×

★ is this thread; numbers match the list above. The number on a line is how many documents both moved the same way in; lines between the other threads count the documents they moved together in too. Threads that move together often sit closer.

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Oi Electric's next results are scheduled for 2026-10-29. Read the earnings preview It last moved in the Results briefing materials of 2026-07-29: "Mitigated".
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Declining profitability and impairment in the network construction and maintenance business | Oi Electric Co.,Ltd. (6822) | Komori