SHO-BOND Holdings Co., Ltd.
1414・Prime Market・Construction
Domestic Construction
Core segment centered on repair and reinforcement work for domestic public infrastructure
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (nine months cumulative) | ¥63,479 million | ¥64,912 million | ↓ |
| Segment profit (nine months cumulative) | ¥15,633 million | ¥15,521 million | ↑ |
| Orders received (nine months cumulative) | ¥62,960 million | ¥66,075 million | ↓ |
| Order backlog (end of third quarter) | ¥81,180 million | ¥91,391 million | ↓ |
Business Details
SHO-BOND Construction Co., Ltd. and other consolidated subsidiaries and affiliates conduct repair and reinforcement construction work and product sales for public structures such as bridges and tunnels. Major customers include East Nippon Expressway, West Nippon Expressway, Central Nippon Expressway companies, the Ministry of Land, Infrastructure, Transport and Tourism, and local governments. The segment's strength lies in proprietary construction methods and materials that combine chemical and civil engineering technologies, establishing it as a top runner in the domestic infrastructure maintenance market. Net sales account for approximately 95% of consolidated total, making it the core business.
Recent Overview
Sales declined but high profit margin maintained; order backlog down 11.2% year on year warrants attention going forward
In the nine months ended March 2026 (FY2026, ending June 2026) (July 2025 to March 2026), net sales of the Domestic Construction segment were ¥63,479 million (down 2.2% year on year). Large-scale order intake from expressway companies and orders from local governments remained sluggish, with orders received of ¥62,960 million (down 4.7% year on year) and order backlog continuing to decline to ¥81,180 million (down 11.2% year on year from the end of the previous year's third quarter). On the other hand, a high gross profit margin on completed construction contracts was maintained in the third quarter as well, and combined with the contribution from increased construction material sales, segment profit increased to ¥15,633 million (up 0.7% year on year). There is no change to the full-year earnings forecast, which remains at full-year net sales of ¥91,000 million (up 0.3% year on year) for FY2026 (ending June 2026).
Key Products
Growth Drivers
- Expansion of demand for public infrastructure development and management based on the National Resilience Implementation Medium-Term Plan (FY2026-FY2030, scale of roughly over ¥20 trillion)
- Increasing demand in response to accelerating infrastructure aging and intensifying, more frequent natural disasters
- Expansion of sales of construction materials such as seismic reinforcement materials and mechanical couplers (up 8.2% year on year in the nine months cumulative)
- Business expansion into peripheral areas beyond roads such as the railway sector (Medium-Term Management Plan 2027)
- Stable profitability through continued maintenance of a high gross profit margin on completed construction contracts
Risks
- Risk of sales fluctuation due to sluggish growth in large-scale order intake from expressway companies (domestic construction orders received down 4.7% year on year in the nine months cumulative)
- Impact on future sales from a decline in order backlog (¥81,180 million at end of third quarter, down 11.2% year on year)
- Volatility in net sales dependent on the level of the beginning order backlog (sluggish construction sales to the national government and expressway companies)
- Instability in the order intake base due to sluggish growth in orders from local governments
- Impact on raw material procurement and pricing stemming from escalating tensions in the Middle East (not yet incorporated into earnings forecasts at this time)
Last updated: September 25, 2025