DAI-ICHI CUTTER KOGYO K.K.
1716・Standard Market・Construction
Cutting and Boring Construction Business
Japan's leading specialized cutting and boring construction business, centered on the diamond method and water jet method
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (completed construction contracts) - 3Q cumulative | ¥15,162 million | ¥14,735 million | ↑ |
| Segment profit - 3Q cumulative | ¥2,626 million | ¥2,229 million | ↑ |
| Segment profit margin - 3Q cumulative | 17.3% | 15.1% | ↑ |
| Segment revenue (completed construction contracts) - full-year actual (prior period) | ¥19,614 million | — | — |
| Segment profit - full-year actual (prior period) | ¥2,763 million | — | — |
Business Details
Using the diamond method employing industrial diamonds and the water jet method employing high-pressure water, the company conducts cutting and boring work on roads, bridges, and concrete structures nationwide. Its main customers are general contractors, road construction companies, and similar entities, with the majority of work related to public works projects. Operations are handled regionally by the company itself (Eastern Japan), Wall Cutting Kogyo (Tokai), Shinshin Kogyo (Okinawa), Assire (Kanto), Unipec (Kinki), and the equity-method affiliate Diamond Kiko (Kyushu). Work is classified into five construction types: civil engineering, building construction, urban civil engineering, roads/airports, and production facility maintenance.
Recent Overview
Expressway-related and private-sector construction remain solid; profit margin improves significantly due to outsourcing cost containment
In the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), completed construction contracts amounted to ¥15,162 million (up 2.9% year on year), securing revenue growth. Orders remained solid, driven mainly by expressway-related work and private-sector construction. Cost containment, including outsourcing and processing expenses, was effective, and segment profit reached ¥2,626 million (up 17.8% year on year), with the profit margin improving significantly to 17.3% from 15.1% in the same period of the prior year. The full-year earnings forecast remains unchanged from the figures announced on February 13, 2026.
Key Products
Growth Drivers
- Continued expansion of demand for repair and renewal of aging infrastructure (bridges, roads, ports, etc.)
- Capturing renewal demand associated with an increase in seismic retrofit and base-isolation renovation work
- Strengthening sales activities targeting transportation infrastructure such as expressways and railways, as well as industrial infrastructure
- Active capital investment and expansion of operating bases in the western Japan area (Kinki, Kyushu)
- Strengthening proposals for expanding markets such as energy-related and underwater construction work
- Expansion of private-sector construction orders backed by a recovery in private-sector capital investment
Risks
- Risk of fluctuation in orders for large-scale public works projects such as expressway renewal work
- Risk of rising costs due to soaring construction material prices and tight labor supply-demand conditions
- Risk of downside pressure on domestic construction investment due to changes in trade policy such as U.S. tariff policy
- Risk of constraints on construction capacity due to difficulty securing and training skilled technicians
- Compliance and governance risk in light of past improper fund diversion issues at a consolidated subsidiary
Last updated: September 29, 2025