Advancing Plant Engineering through EPTC and 3PM

「In maintenance, in addition to the impact of one newly consolidated subsidiary added in March 2026, the volume of domestic SDM (large-scale periodic repair work) increased due to the impact of a major-year cycle.」

「As labor shortages become more severe, the company will promote DX to improve efficiency and productivity and provide more sophisticated services. Initiatives will include creating databases of human resources, technologies and skills, systematizing project management, and providing predictive maintenance services using the latest technologies.」

「In equipment construction, against a backdrop of domestic industrial demand for equipment renewal and decarbonization, construction and renewal work for steel- and chemical-related facilities increased in Japan, as did EV-related construction work in the United States.」

「In equipment construction, against a backdrop of domestic industrial demand for equipment renewal and decarbonization, installation and construction work for steel, chemical and environmental projects increased in Japan, as did factory construction and expansion work related to EVs in the United States.」

「In equipment construction, installation and dismantling work increased for steel, chemical and environmental projects in Japan. In maintenance operations, construction volume for domestic SDM (major scheduled maintenance shutdowns) increased at various sites because it was a major year. As a result, revenue for the Plant Engineering business as a whole was ¥138.791 billion, up 13.2% year on year, and segment profit (operating profit) was ¥15.059 billion, up 32.1% year on year.」

「As a result, revenue for the Plant Engineering business as a whole was ¥252.611 billion, roughly unchanged from the previous fiscal year, while segment profit (operating profit) was ¥25.122 billion, down 3.7% from the previous fiscal year.」

「As a result, revenue for the Plant Engineering business as a whole was ¥187.514 billion, down 1.1% year on year, and segment profit (operating profit) was ¥18.164 billion, down 8.7% year on year.」

「In equipment construction, there was a decline following the completion in the previous fiscal year of steel-related refurbishment projects, chemical-related construction projects and infrastructure facility construction. In maintenance operations, construction volume for domestic SDM (major scheduled maintenance shutdowns) declined because it was a minor year. As a result, revenue for the Plant Engineering business as a whole was ¥122.557 billion, down 3.0% year on year, and segment profit (operating profit) was ¥11.396 billion, down 14.3% year on year.」

「In equipment construction, although construction of steel- and chemical-related facilities increased, this was more than offset by the decline following the completion in the previous fiscal year of steel-related refurbishment projects and infrastructure facility construction. In maintenance operations, construction volume for domestic SDM (major scheduled maintenance shutdowns) declined because it was a minor year. As a result, revenue for the Plant Engineering business as a whole was ¥60.980 billion, down 0.7% year on year, and segment profit (operating profit) was ¥5.808 billion, down 3.8% year on year.」

「In the Plant Engineering business, the company has steadily captured customers' outsourcing needs by capitalizing on its business model, and in recent years the maintenance business has grown substantially in Japan and overseas. Under the new Medium-Term Management Plan 2026, the company will further strengthen the advantages of its existing businesses, reliably capture demand in its core steel and petrochemical industries, and expand into future growth areas such as carbon neutrality-related businesses and overseas operations.」

「The company will use the expertise and strengths developed through its existing businesses to expand into growth and new areas, including mid-sized EPC projects in Japan and overseas, green-related businesses such as renewable energy, and maintenance of aging social infrastructure.」

「In equipment construction, although there was a decline following the completion in the previous fiscal year of chemical plant construction projects and wind power-related construction projects involving heavy-load transportation, construction volume increased in connection with the refurbishment and renewal of steel-related facilities. In maintenance operations, domestic SDM (major scheduled maintenance shutdowns) and inspection work increased. As a result, revenue for the Plant Engineering business as a whole was ¥126.289 billion, up 2.9% year on year, and segment profit (operating profit) was ¥13.303 billion, up 20.2% year on year.」

「In equipment construction, there was a decline following the completion in the previous fiscal year of chemical plant construction projects and wind power-related construction projects involving heavy-load transportation. However, maintenance work and inspection work for domestic SDM (major scheduled maintenance shutdowns) increased. As a result, revenue for the Plant Engineering business as a whole was ¥61.429 billion, up 0.2% year on year, and segment profit (operating profit) was ¥6.035 billion, up 20.3% year on year.」

「In equipment construction, construction volume increased through progress on large chemical plant-related projects in Japan, equipment installation and piping work in Southeast Asia, and project work in China and the United States. However, this was not enough to offset construction volume from the large construction and environmental projects completed in Japan in the previous fiscal year. In maintenance operations, construction volume increased in Kyushu and SDM (major scheduled maintenance shutdowns) in Southeast Asia gradually increased, but cumulative volume remained below the level of the previous fiscal year's major SDM year, resulting in lower revenue and profit. Revenue was ¥181.358 billion, down 0.6% year on year, and segment profit (operating profit) was ¥17.202 billion, down 6.2% year on year.」

「In equipment construction, construction volume increased through progress on large chemical plant-related projects in Japan, the restart of postponed projects in Southeast Asia, and project work in China and the United States. However, this was not enough to offset construction volume from the large construction and environmental projects completed in Japan in the previous fiscal year. In maintenance operations, construction volume increased in eastern Japan in addition to the Kansai and Chugoku regions, but did not reach the level of the previous fiscal year's major SDM year, resulting in lower revenue and profit.」

「In equipment construction, although ongoing large-scale plant projects in Japan and increased volumes of machinery and installation work in China supported construction volume, the completion of large environmental projects in the previous fiscal year and the continued lack of full-scale operations at projects postponed mainly in Southeast Asia resulted in a lull in construction volume. In maintenance operations, although customers' construction volume increased in the Kansai and Chugoku regions, SDM at oil and petrochemical facilities in Japan was generally in a minor year, and the company was unable to secure repair and maintenance-related construction volume at the previous fiscal year's level.」

「In the Plant Engineering business, the company has steadily captured customers' outsourcing needs by capitalizing on its business model, and in recent years the maintenance business has grown substantially in Japan and overseas. Going forward, the company will further expand into power and energy and environmental facilities, which it is developing as a third pillar after steel and chemicals, and pursue steady business growth.」

「In equipment construction, although there were projects for equipment refurbishment and installation and production infrastructure development, large environmental projects that had continued from the previous fiscal year and plant construction projects in Japan and overseas were completed. In addition, many large projects in Southeast Asia that had been suspended or postponed had not yet reached full-scale operations, resulting in lower revenue and profit. In maintenance operations, although repair and maintenance work declined, particularly for steel facilities, domestic SDM at oil and petrochemical facilities was in a major year in autumn as well and progressed steadily, resulting in higher revenue and profit. Ultimately, the negative impact of lower profit in equipment construction was substantial, and the Plant Engineering business as a whole reported lower revenue and profit. Revenue was ¥182.523 billion, down 4.5% year on year, and segment profit (operating profit) was ¥18.349 billion, down 9.2% year on year.」

「In equipment construction, although there were projects for equipment renewal, removal and installation at facilities, large environmental projects that had continued from the previous fiscal year and plant construction projects in Japan and overseas were completed. In addition, many projects were interrupted or had their construction schedules postponed to the fourth quarter or later, resulting in lower revenue and profit. In maintenance operations, although construction volume declined following customers' budget reviews in Japan and declines in SDM (major scheduled maintenance shutdowns) and other work in Southeast Asia and the Middle East from the second quarter onward, domestic SDM was in a major year and spring SDM at oil and petrochemical facilities progressed steadily, resulting in higher revenue and profit. However, the impact of equipment construction was substantial, and the Plant Engineering business as a whole reported lower revenue and profit. Revenue was ¥125.628 billion, down 1.6% year on year, and segment profit (operating profit) was ¥12.505 billion, down 1.7% year on year.」

「In maintenance operations, although construction volume declined following customers' reviews of repair budgets and other factors, domestic SDM (major scheduled maintenance shutdowns) was in a major year. In addition to the steady progress of spring SDM at oil and petrochemical facilities in Japan, SDM at petrochemical facilities in the Middle East increased, resulting in higher revenue and profit for the Plant Engineering business as a whole.」

「In maintenance operations, SDM at oil and petrochemical facilities increased from autumn through winter, including additional ancillary work, and routine maintenance work increased in Japan and overseas throughout the year. However, SDM in Japan and overseas was in a minor year, and the difference in construction volume from the previous year's major year could not be covered, resulting in lower revenue and profit. In equipment construction, although large-scale steel-related dismantling projects, power-related scheduled inspection work and on-site equipment expansion projects declined from the previous fiscal year, revenue and profit increased on the acquisition of large environmental projects and civil engineering work for public facilities in Japan, differences in the year-on-year period following the merger of subsidiaries, and increases in overseas equipment dismantling and production infrastructure expansion projects and additional ancillary work for production lines.」

「In equipment construction, although large-scale steel-related dismantling projects, power-related scheduled inspection work and on-site equipment expansion projects declined from the previous fiscal year, revenue and profit increased on the acquisition of large environmental projects and civil engineering work for public facilities in Japan, as well as overseas equipment dismantling and production infrastructure expansion projects and additional ancillary work for production lines.」

「In equipment construction, although large-scale dismantling projects, power-related scheduled inspection work and on-site equipment expansion projects declined from the previous fiscal year, revenue and profit increased as the company secured large environmental projects in Japan, overseas equipment dismantling and production infrastructure expansion projects, and additional ancillary work. In maintenance operations, daily maintenance work in Japan and overseas petrochemical SDM (major scheduled maintenance shutdowns) increased, but domestic SDM at oil and petrochemical facilities was in a minor year, and construction volume declined from the previous fiscal year. As a result, the Plant Engineering business as a whole reported lower revenue and profit. Revenue was ¥127.712 billion, down 2.8% year on year, and segment profit (operating profit) was ¥12.720 billion, down 10.0% year on year.」

「In equipment construction, the company secured large environmental projects and other work in Japan, but profit declined because of differences in construction volume from the previous fiscal year, when there were large-scale dismantling projects, power-related scheduled inspection work and on-site equipment expansion projects. In maintenance operations, domestic SDM (major scheduled maintenance shutdowns) at oil and petrochemical facilities was in a minor year, and construction volume declined from the previous fiscal year. Overseas construction volume was maintained at the same level as in the same period of the previous year, but the Plant Engineering business as a whole reported lower revenue and profit.」

「In equipment construction, in addition to completing power, environmental, and large-scale bridge construction projects, equipment renewal, improvement, and dismantling work, mainly at customer sites, remained strong. In maintenance, this fiscal year was a major year for SDM at oil and petrochemical facilities, and work volume increased compared with the previous fiscal year, a minor year, while expansion progressed through additional, peripheral, and ancillary work. Overseas, SDM increased, and additional manufacturing-line and ancillary equipment work was secured, resulting in higher revenue and profit for the plant engineering business as a whole. Revenue was ¥257,893 million, up 10.6% from the previous consolidated fiscal year, while segment profit (operating profit) was ¥27,217 million, up 33.8%.」

「In equipment construction, in addition to equipment renewal, improvement, and dismantling work, power and generation-related construction, for which we have been focusing on expanding orders, and equipment repair work centered on customer sites remained strong. In maintenance, this fiscal year was a major year for SDM at oil and petrochemical facilities, and work volume increased compared with the previous fiscal year, a minor year, while expansion progressed through additional, peripheral, and ancillary work. Overseas, we also secured additional construction work for manufacturing lines related to equipment, resulting in higher revenue and profit for the plant engineering business as a whole. Revenue was ¥190,937 million, up 10.2% year on year, while segment profit (operating profit) was ¥20,155 million, up 29.7%.」

「In equipment construction, although large-scale domestic equipment dismantling work had largely been completed, equipment expansion work centered on customer sites remained strong. In maintenance, this fiscal year was a major year for SDM at oil and petrochemical facilities, and work volume increased compared with the previous fiscal year, a minor year, while expansion progressed through additional and dismantling work. Overseas, although some projects were rescheduled, the plant engineering business as a whole reported higher revenue and profit. Revenue was ¥131,453 million, up 13.7% year on year, while segment profit (operating profit) was ¥14,133 million, up 34.9%.」

「In equipment construction, in addition to securing orders for large-scale domestic equipment dismantling, we secured periodic inspection and repair work related to power facilities and equipment expansion work at steelmaking sites. In maintenance, this fiscal year was a major year for SDM at oil and petrochemical facilities, and construction volume increased compared with the previous fiscal year, a minor year, while bridge installation work using heavy-haul transport also contributed to higher revenue and profit. Overseas, maintenance work declined due to a customer’s withdrawal from Southeast Asia, but the plant engineering business as a whole reported higher revenue and profit. Revenue was ¥64,784 million, up 15.0% year on year, while segment profit (operating profit) was ¥7,556 million, up 47.0%.」

「The following newly finalized plans for the construction of significant new facilities were identified during the cumulative third quarter of the consolidated fiscal year under review.」

「In equipment construction, the company expanded orders for manufacturing infrastructure development and efficiency-improvement projects in Japan, securing construction volumes broadly in line with the previous period, while improving profitability by optimizing personnel shifts and equipment allocation and thoroughly managing costs. In maintenance operations, volumes declined because domestic SDM (large-scale scheduled maintenance projects) had been a major year in the previous period. However, SDM in Southeast Asia and maintenance operations in the Middle East increased, as did civil engineering work for large-scale equipment installation projects in Japan, resulting in higher revenue and profits for the plant engineering business overall. Revenue increased 1.0% year on year to ¥173.243 billion, and segment profit (operating profit) increased 6.8% to ¥15.534 billion.」

「In equipment construction, construction volume declined from the previous fiscal year due to a gap between large-scale overseas projects and delays in the start of some projects. However, profitability improved as orders increased for robust manufacturing foundation and efficiency-improvement work at domestic manufacturing sites, while improvements in construction methods, personnel shifts, equipment deployment, and strict cost management also proved effective. In maintenance, although the volume differed from the previous fiscal year, when domestic SDM (major scheduled repair work) was a major year, profit increased due to higher SDM volume in some areas of domestic consolidated subsidiaries and Southeast Asia and the early execution of maintenance work in Brazil. The plant engineering business as a whole reported higher revenue and profit. Revenue was ¥115,628 million, up 0.3% year on year, while segment profit (operating profit) was ¥10,480 million, up 9.0%.」

「In equipment construction, large-scale overseas projects were between project phases, and total construction volume declined year on year. In maintenance, although this fiscal year is a minor year for SDM (major scheduled repair work) at oil and petrochemical facilities, revenue benefited from increased orders for manufacturing foundation and efficiency-improvement work at domestic manufacturing sites and increased on-site improvement work in South America.」

「In the plant engineering business, we will reliably secure overseas project orders by participating from the customer’s feasibility study stage, using our proprietary EPTC business model, which adds T (Transport) for heavy-haul transport to EPC. In maintenance, we will further advance our 3PM (integrated maintenance) services, enhance our technical capabilities to address customers’ upstream processes, and seek to enter the market for major overseas customers.」

「Large-scale domestic blast furnace refurbishment progressed, while projects to strengthen manufacturing foundations and improve production efficiency and work to remove and dismantle existing equipment also increased steadily. Overseas, automotive-related equipment installation work and other projects increased in North America. Revenue was ¥171,582 million, up 13.7% year on year, while segment profit (operating profit) was ¥14,544 million, up 32.1%.」

「We steadily secured orders for projects aimed at strengthening domestic manufacturing foundations and improving production efficiency, and expanded orders for coke oven refurbishment and related synchronized work, blast furnace refurbishment, and factory equipment dismantling. Although large-scale projects in Southeast Asia were between project phases, automotive-related equipment installation work and other projects increased in North America.」

「In equipment construction, in addition to expanding orders for domestic coke oven refurbishment and related synchronized work, which are priorities under our medium-term strategy, we secured orders for blast furnace refurbishment and related work. Overseas, we continued strengthening our construction management systems in Southeast Asia and China and secured orders for automotive-related equipment installation work in the United States.」

「We will further advance the “plant construction EPTC business model” and “3PM (integrated maintenance),” a solutions-based business covering production equipment maintenance from inspection and diagnosis through planning and construction, to provide high-value-added services globally while also」