SHO-BOND Holdings Co., Ltd.
1414・Prime Market・Construction
Business
Shobond Holdings is a pure holding company for a group specializing in infrastructure maintenance, founded in 1958. Centered on its core subsidiary Shobond Corporation, the group's main business is repair and reinforcement work on public structures such as bridges, roads, and tunnels. Its major customers are the East Nippon, West Nippon, and Central Nippon Expressway companies (accounting for approximately 45% of revenue), as well as the Ministry of Land, Infrastructure, Transport and Tourism and local governments. Leveraging its proprietary strength in developing materials and construction methods that combine chemical and civil engineering technologies, the company has built a stable order base against the backdrop of accelerating infrastructure aging and national resilience policies. The group comprises 17 consolidated subsidiaries and 3 affiliated companies, and also engages in product manufacturing, overseas construction, and materials sales.
Business Model
In the domestic construction segment, which accounts for approximately 96% of net sales, the company operates a contract-based model in which it receives and executes repair and reinforcement work orders from national and local governments and expressway companies. By handling everything in-house from material manufacturing (Show Bond Material) through construction, the company maintains a high gross profit margin of 29.2% (FY2025 (ending June 2025)). It continues to invest ¥565 million in R&D expenses, securing a competitive advantage through the development of new materials and construction methods.
Company Strengths
In FY2025 (ended June 2025), the company achieved net sales of ¥90,712 million (up 6.2% year on year) and operating profit of ¥20,794 million (up 5.7% year on year), marking 11 consecutive periods of revenue and profit growth. From FY2021 to FY2025, net sales expanded steadily from ¥80,065 million to ¥90,712 million, while operating profit grew from ¥15,732 million to ¥20,794 million.
In FY2025 (ended June 2025), the gross profit margin remained at a high level of 29.2%, continuing the trend from the previous period. The company's development capability in proprietary materials and construction methods that combine chemical and civil engineering technologies, together with cost management under an integrated group structure, underpins its high-profitability structure. The operating profit margin also stood at a notably high 22.9% within the construction industry.
As of the end of FY2025 (ended June 2025), the equity ratio stood at 83.2%, with net assets of ¥107,307 million (on a segment analysis basis), maintaining an extremely sound financial position that is nearly debt-free. The company held cash and cash equivalents of ¥32,523 million and continued a high level of shareholder returns, with a total payout ratio of 93.0% (comprising a dividend payout ratio of 60.1% plus ¥5,000 million in share buybacks).
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of Q3 FY2026 (ending June 2026), net sales came to ¥66,753 million (down 1.7% year on year), turning to a slight decrease. Construction sales to national and expressway companies were subdued (construction sales of ¥59,969 million, down 2.7% year on year) due to a decline in the order backlog at the start of the period, while construction materials sales were strong at ¥6,783 million (up 8.2% year on year) on increased sales of seismic reinforcement materials and mechanical joints. On the profit side, gross profit exceeded the same period of the previous year owing to the maintenance of a high gross profit margin on completed construction contracts and the increase in materials sales, securing profit growth with operating profit of ¥16,591 million (up 1.8% year on year), ordinary profit of ¥16,968 million (up 2.8% year on year), and quarterly profit attributable to owners of parent of ¥11,860 million (up 1.5% year on year). Combined with the past five years of full-year results (operating profit of ¥15,732 million in FY2021 → ¥20,794 million in FY2025), the profit growth trend continues, but a deceleration in sales growth has become apparent.
Growth Strategy
Under Medium-Term Management Plan 2027, the company aims to achieve net sales of ¥100.0 billion and operating profit of ¥22.0 billion.
While orders from expressway companies and local governments have been sluggish, the company aims to recover order intake by leveraging the National Resilience Implementation Mid-term Plan (FY2026–FY2030, roughly ¥20 trillion-plus in scale) as an external tailwind. Cumulative orders received through the third quarter stood at ¥62,960 million (down 4.7% year on year), leaving challenges unresolved.
The company aims to increase the profit contribution of materials sales, in addition to construction sales, by expanding sales of its in-house developed seismic reinforcement materials and mechanical couplers. Cumulative construction materials sales through the third quarter reached ¥6,783 million (up 8.2% year on year), expanding steadily and contributing to profitability improvement as a high-margin segment.
Under Medium-Term Management Plan 2027, the company is promoting expansion into adjacent fields such as railways, in addition to its traditional road, bridge, and tunnel repair work. By horizontally deploying its existing repair and reinforcement technologies and construction methods, the company aims to develop new customers and markets, diversifying net sales and accelerating growth.
Under Medium-Term Management Plan 2027, the company is shifting its overseas business toward a technical cooperation and construction management model. It is pursuing new market development through trial construction in India and El Salvador. Net sales to external customers in the Other segment grew to ¥3,273 million (up 9.0% year on year) on a cumulative basis through the third quarter.
Last updated: July 17, 2026