Fudo Tetra Corporation
1813・Prime Market・Construction
Civil Engineering Business
Fudo Tetra's core business segment engaged in land-based and marine civil engineering works
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥33,739 million | ¥28,384 million | ↑ |
| Segment profit | ¥280 million | ¥559 million | ↓ |
| Orders received | ¥29,666 million | ¥28,655 million | ↑ |
| Order backlog carried forward to next period | ¥52,675 million | ¥56,748 million | ↓ |
| Depreciation and amortization | ¥540 million | ¥163 million | ↑ |
Business Details
Handled by the Civil Engineering Business Division, this segment's core operations comprise land-based civil engineering works such as roads, tunnels, bridges, and sewerage, as well as marine civil engineering works such as ports, reclaimed seawalls, and coasts. The segment has a high dependence on public works, with the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) as its main customer, and its principal demand base is public investment related to disaster prevention, mitigation, and national resilience. Under the "Harvest and Realization" phase of the medium-term management plan (FY2024-FY2026), the segment is working to improve profitability.
Recent Overview
Net sales increased on progress of large-scale carried-forward projects, but segment profit halved due to unmet profitability targets
In the Civil Engineering Business for FY2026 (ending March 2026), net sales increased to ¥33,739 million (up 18.9% year on year) as large-scale carried-forward projects progressed steadily. On the profit side, however, planned profitability was not secured, and segment profit fell sharply to ¥280 million (down 49.9% year on year). The order backlog carried forward to the next period decreased to ¥52,675 million from ¥56,748 million in the prior period. Net sales for the next fiscal year are forecast at ¥34,400 million, and segment profit is forecast at ¥510 million, anticipating a recovery in profitability.
Key Products
Growth Drivers
- Steady public construction investment trends driven by promotion of disaster prevention, mitigation, and national resilience
- Increase in net sales driven by steady progress on large-scale carried-forward projects
- Expected recovery in profitability in the next fiscal year (segment profit forecast of ¥510 million, up ¥230 million year on year)
- Continued increase in orders received (¥29,666 million in the current fiscal year, up 3.5% year on year)
- Stable public works order base from MLIT, expressway companies, and others
Risks
- Rising construction costs due to soaring construction material prices, labor shortages, and wage increases are pressuring profitability
- Risk of failing to achieve planned profitability on large-scale projects (segment profit fell 49.9% year on year in the current period as planned profitability was not secured)
- Downward pressure on future net sales from a decline in order backlog carried forward to the next period (from ¥56,748 million to ¥52,675 million)
- Governance risk and recurrence-prevention costs arising from the discovery of improper cost recording practices, including cost reallocation
- High dependence on public investment, making the segment susceptible to changes in government budgets and policy
- Tightening labor conditions among partner companies due to the application of overtime work caps and a declining working population
Last updated: June 18, 2026