Reliance on Public Works, Natural Disasters and Legal and Regulatory Risks in the Road Business
First written in FY2022. 1 of 3 entries say "Worsened", first in FY2025-H1. Latest entry: FY2026.
Toho moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 2 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In September 2025, Subaru Kogyo Co., Ltd. underwent an on-site inspection by the Japan Fair Trade Commission concerning bid rigging, followed in April 2026 by cease-and-desist and surcharge payment orders under the Antimonopoly Act. The consolidated financial statements were directly affected, including the recognition of a loss related to the Antimonopoly Act as an extraordinary loss during the current consolidated fiscal year.」
Regarding the Antimonopoly Act risk specific to the road business, an on-site inspection was followed by a cease-and-desist order, a surcharge payment order and recognition of an extraordinary loss. - FY2025-H1WorsenedAnnual report
「In the road business, public investment remained solid, but the situation continued to require close attention, including the urgent need to address the chronic shortage of skilled construction workers and the Work Style Reform-related laws applicable to the construction industry. Against this backdrop, Subaru Kogyo Co., Ltd. and its consolidated subsidiaries worked to secure orders for various projects by strengthening their response to the comprehensive evaluation method used in open competitive bidding, and also undertook emergency responses to natural disasters.」
It was stated that responding to the Work Style Reform-related laws had become an urgent issue among the risks specific to the road business, and that emergency responses to natural disasters had also arisen. - FY2022First statedAnnual report
「The road business faces risks specific to the industry, including risks associated with high dependence on public works, shortages of labor, increases in labor costs and prices of equipment and materials, natural disasters, and regulations such as the Construction Business Act.」
Separate from the existing risks of a shortage of skilled workers and rising costs, risks specific to the road business, including dependence on public works, natural disasters and regulations such as the Construction Business Act, were identified independently.