DAI-ICHI CUTTER KOGYO K.K.
1716・Standard Market・Construction
Business
Daiichi Cutter Kogyo Co., Ltd., founded in 1967, is a specialized construction company that operates nationwide in concrete structure cutting and drilling work, centered on diamond cutting methods using industrial diamonds and water jet methods utilizing water pressure. The company has four consolidated subsidiaries (Wall Cutting Kogyo, Shinshin Kogyo, Assist, and Unipec) and two equity-method affiliates, with regional sales bases spanning from eastern Japan to Kyushu and Okinawa. Its main customers are general contractors and road construction companies, and it undertakes a wide range of public and private infrastructure work, including bridges, ports, railways, roads, airports, and production facility maintenance. The company also operates a building maintenance business (water supply/drainage facility maintenance and cleaning). It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The business model is mainly subcontracting as a specialized construction contractor. The company receives orders from general contractors and road construction companies acting as prime contractors, and differentiates itself by employing proprietary construction methods—diamond cutting and water jet methods—that place a low burden on the environment. The majority of net sales come from public works-related construction, with the cutting and drilling construction business accounting for approximately 97% of net sales. The building maintenance business is a small growth segment centered on the Tokyo metropolitan area. Funding is mainly covered by internal funds, and the company maintains a solid financial base with an equity ratio of 86.4%.
Company Strengths
Since its founding in 1967, the company has built a group structure with a sales base in six areas nationwide: Eastern Japan (head office), Tokai (Wall Cutting Kogyo), Kinki (Unipec), Kyushu (Diamond Kiko), Okinawa (Shinshin Kogyo), and Kanto (Ashire). Completed construction revenue in the cutting and drilling construction business reached ¥19,614 million, giving it the largest scale in the industry.
As of the end of FY2025 (ended June 2025), against total assets of ¥22,247 million, net assets stood at ¥19,358 million, with an equity ratio of 86.4%, indicating an extremely robust financial base. The company maintains low reliance on interest-bearing debt, adhering to a policy of funding working capital and capital expenditures primarily with internal funds. Cash and cash equivalents stood at ¥8,209 million, providing strong resilience against economic fluctuations.
The diamond method and water jet method, which suppress noise, dust, and vibration, provide competitive advantages at sites in urban areas and under strict environmental regulations. The Equipment Development Section continues to improve and develop machinery and equipment, with R&D expenses of ¥77 million (cutting and drilling construction business) in FY2025 (ended June 2025). The company is advancing technological innovation tailored to on-site needs, such as reducing construction sludge volume and supporting remote operations.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥22,164 million in FY2023 (ended June 2023) and declined to ¥20,229 million in FY2025 (ended June 2025), but has bottomed out with a full-year forecast of ¥20,500 million for FY2026 (ending June 2026), up 1.3% year on year. On the profit side, operating profit fell sharply to ¥1,647 million in FY2025 (ended June 2025), down 33% year on year, but recovered strongly in the cumulative nine months of Q3 FY2026 (ending June 2026), reaching ¥1,774 million in operating profit, up 28.6% year on year. This was mainly driven by cost containment in cost of completed construction contracts (reductions in subcontracting and processing expenses, among others). In terms of the external environment, steady public investment and a recovery in private-sector capital expenditure have supported order intake. The cumulative nine-month progress rate against the full-year forecast stands at a high level of 92.2% for operating profit and 93.1% for net profit.
Growth Strategy
Expanding existing competitive advantages along three axes: expansion into Western Japan, development of new markets such as energy, and strengthening technological capabilities
The company is strengthening its construction capabilities centered on the Kinki and Kyushu areas to capture demand from aging regional infrastructure. As of the end of March 2026, land holdings increased by ¥683 million from the previous fiscal year-end (from ¥2,418 million to ¥3,101 million), reflecting ongoing investment in facility development.
The company is strengthening proposals that apply its existing cutting and drilling technologies to new markets such as renewable energy-related facilities and underwater construction. This aims to diversify the revenue base by reducing dependence on expressway-related construction work.
The company is focusing on developing new projects with major developers, primarily in the Tokyo metropolitan area. Net sales of completed construction contracts for the cumulative nine months of FY2026 (ending June 2026) reached ¥486 million (up 5.2% year on year), securing revenue growth; however, segment profit declined to ¥38 million (down 24.2% year on year) due to increased administrative expenses associated with strengthening the operational structure. Balancing scale expansion with profitability remains a challenge.
In addition to securing orders and strengthening construction capabilities, the company is thoroughly controlling costs such as subcontracting and processing expenses. For the cumulative nine months of FY2026 (ending June 2026), cost of completed construction contracts was reduced by 1.6% year on year, improving the gross profit margin on completed construction contracts from 29.1% to 32.3%. Margin improvement is also expected for the full year.
Last updated: July 17, 2026