Deteriorating profitability in the sign business due to low-margin projects
First written in FY2023-Q3. 10 of 16 entries say "Mitigated", first in FY2025-H1. Latest entry: 2026-11-12.
No other company in this theme has enough history to compare yet.
- 2026-11-12MitigatedEarnings presentation
「サイン事業は黒字転換。」
サイン事業は前期の損失継続から、2027年3月期第2四半期に営業利益22百万円となり、収益性悪化リスクが損益面で低減している。 - FY2027-H1MitigatedAnnual report
「As support for the nationwide rollout of information-numbering systems and large digital signage expanded steadily, and revenue recognition progressed steadily for various signage projects won in the Tokai area by 株式会社アイセイ, which became a subsidiary on 1 October 2025, revenue amounted to ¥1,014 million and segment profit to ¥22 million, representing a return to profitability from the segment loss recorded in the first quarter cumulative period.」
The Signage business had continued to report losses due to fewer large projects and expenses related to new products, but revenue recognition from information-numbering systems, large digital signage and projects undertaken by 株式会社アイセイ resulted in segment profit of ¥22 million for the interim period and a return to profitability. - 2026-08-10MitigatedEarnings presentation
「サイン事業においても赤字幅が縮小。」
サイン事業の第1四半期営業損失が前年同期の62百万円から41百万円へ縮小し、低利益率案件による収益性悪化は損失額ベースで改善している。ただし赤字は継続している。 - FY2026MitigatedAnnual report
「The directory assistance system provided to local governments and Hello Work offices nationwide continued to expand, while we strengthened sales to railway operators, local governments and tourist facilities. In addition, 株式会社アイセイ社, which became a subsidiary on 1 October 2025, won a large-scale sign project in Aichi Prefecture. As a result, revenue was ¥1,903 million and the segment loss was ¥7 million, representing a narrowing of the loss.」
The segment loss in the sign business narrowed from ¥133 million in the previous fiscal year to ¥7 million. However, losses continued. - FY2026-H1MitigatedAnnual report
「We implemented measures including strengthening sales to railway operators and local governments, expanding business with existing customers, and exhibiting at trade shows to raise awareness of our products and solutions, while also working to provide a directory assistance system to local governments. However, revenue was ¥403 million, down 5.4% year on year, and the segment loss was ¥100 million, compared with a segment loss of ¥105 million in the same period of the previous year, due in part to a decline in large-scale projects.」
In the sign business, revenue declined year on year due in part to a decrease in large-scale projects, while the segment loss narrowed from ¥105 million in the same period of the previous year to ¥100 million. Losses continued, but the loss amount improved. - FY2025MitigatedAnnual report
「While working to deepen our involvement in railway-related business and expand transactions by actively proposing new disaster-prevention products to local governments, revenue was ¥1,186 million, down 20.1% year on year, and the segment loss was ¥133 million, compared with a segment loss of ¥165 million in the previous year, because we failed to secure large-scale projects comparable to those obtained in the previous fiscal year and incurred sales expenses for new products ahead of revenue.」
In the sign business, revenue declined due to a decrease in large-scale projects, while the segment loss narrowed from ¥165 million in the previous year to ¥133 million. Sales expenses for new products were incurred ahead of revenue, and losses continued. - FY2025-H1MitigatedAnnual report
「Although we worked to strengthen sales to local governments and hospitals and expand business with existing customers, revenue was ¥426 million, down 16.2% year on year, and the segment loss was ¥105 million, compared with a segment loss of ¥147 million in the same period of the previous year, due mainly to a decline in large-scale projects.」
The segment loss in the sign business narrowed from ¥147 million in the same period of the previous year to ¥105 million, indicating a lower degree of deterioration based on the loss amount. However, revenue declined due to a decrease in large-scale projects, and losses continued. - FY2024WorsenedAnnual report
「Meanwhile, in the business for the new disaster alert system "NAVI Alert," development costs for the system were incurred ahead of revenue. Revenue was ¥1,484 million, up 11.0% year on year, and the segment loss was ¥165 million, compared with a segment loss of ¥54 million in the same period of the previous year.」
In the sign business, development costs for NAVI Alert were incurred ahead of revenue, causing the segment loss to widen from ¥54 million in the previous year to ¥165 million. In addition to the existing low-margin projects, the deterioration in profitability caused by development costs for new products has become apparent. - FY2024-Q3WorsenedAnnual report
「Meanwhile, in the business for the new disaster alert system "NAVI Alert," development costs for the system were incurred ahead of revenue. Revenue was ¥906 million, up 29.8% year on year, and the segment loss was ¥232 million, compared with a segment loss of ¥118 million in the same quarter of the previous year. Expenses related to "NAVI Alert" were ¥137 million in the nine months ended the third quarter, compared with ¥11 million in the same period of the previous year.」
In the sign business, development costs for NAVI Alert were incurred ahead of revenue, and related expenses increased from ¥11 million in the same period of the previous year to ¥137 million. As a result, the segment loss widened from ¥118 million to ¥232 million. The deterioration in profitability caused by low-margin projects and development costs has become more pronounced. - FY2024-Q2WorsenedAnnual report
「Although we strengthened sales to local governments and hospitals, expanded business with existing customers, and began selling the disaster alert system "NAVI Alert," revenue was ¥509 million, up 23.9% year on year, and the segment loss was ¥147 million, compared with a segment loss of ¥76 million in the same quarter of the previous year, as development costs were incurred ahead of revenue.」
In the sign business, development costs were incurred ahead of revenue, causing the segment loss to widen from ¥76 million in the same period of the previous year to ¥147 million. The direct factor this time was explicitly identified as development costs for new products, separate from the previously cited low-margin projects. - FY2024-Q1WorsenedAnnual report
「Although we worked to strengthen sales to local governments and hospitals and expand business with existing customers, revenue was ¥153 million, down 39.4% year on year, and the segment loss was ¥89 million, compared with a segment loss of ¥27 million in the same quarter of the previous year, due in part to the recognition of development costs for new products.」
In the sign business, the segment loss widened from ¥27 million in the same period of the previous year to ¥89 million due to development costs for new products and other factors. This indicates an increase in the burden associated with the existing theme of deteriorating profitability. - FY2023MaterialisedAnnual report
「Although we received orders for large-scale projects from local governments and companies, some projects had low profit margins. Revenue was ¥1,337 million, up 22.3% year on year, and the segment loss was ¥54 million, compared with segment profit of ¥9 million in the same period of the previous year.」
The increase in large-scale project orders and the presence of low-margin projects were reflected in a loss in the sign business, which recorded a segment loss of ¥54 million. - FY2023-Q3MaterialisedAnnual report
「Although we received orders for large-scale projects from local governments and companies, some projects had low profit margins. Revenue was ¥698 million, up 7.3% year on year, and the segment loss was ¥118 million, compared with a segment loss of ¥38 million in the same period of the previous year.」
While receiving orders for large-scale projects, we also had low-margin projects, resulting in a segment loss of ¥118 million in the sign business.