FUJI P.S CORPORATION

Business Details

This segment undertakes civil engineering construction contracting, planning, design, and construction supervision using prestressed concrete (PC) technology, as well as the manufacture and sale of PC civil engineering products. Major customers include expressway companies, the Ministry of Land, Infrastructure, Transport and Tourism, local governments, and other public sector entities. Consolidated subsidiary Suruga Giken Co., Ltd. handles diagnosis, repair, and reinforcement of concrete structures, also operating a maintenance business. In FY2026 (ending March 2026), this segment accounted for approximately 71% of consolidated net sales, making it the core segment. Major customers include Central Nippon Expressway Company Limited (¥5,456 million) and West Nippon Expressway Company Limited (¥3,785 million).

Recent Overview

Both sales and profit increased, but orders received fell 6.7% year on year due to slowdown in bridge public tenders

In FY2026 (ending March 2026), net sales were ¥23,053 million (up 1.5% year on year), and segment profit was ¥4,124 million (up 20.7% year on year). Increases from final design-change contracts on large-scale projects reaching the end of their construction periods, as well as design changes through negotiations on various escalation clauses with ordering parties, exceeded expectations and significantly improved project profitability. On the other hand, orders received decreased to ¥17,080 million (down 6.7% year on year), mainly due to intensified competition amid a slowdown in bridge-related public tender construction orders. Major customers disclosed were Central Nippon Expressway Company Limited (¥5,456 million) and West Nippon Expressway Company Limited (¥3,785 million).

Key Products

Growth Drivers

• Expansion of aging-infrastructure renewal and disaster-prevention projects under the government-led 'First National Resilience Implementation Medium-Term Plan,' launching in FY2026
• Continued ordering of aging-countermeasure and maintenance/renewal construction based on expressway companies' 'medium-term business outlook'
• Securing large, long-term construction projects and stabilizing management through use of the ECI (Early Contractor Involvement) method
• Improved project profitability through design-change and escalation-clause negotiations with ordering parties
• Expanding demand for factory-manufactured products such as precast PC deck slabs (addressing on-site labor-saving needs)
• Complementary mutual PC technology enhancement, joint technology development, and expansion into new business areas through business alliance with Taiyu Kensetsu Co., Ltd.
• Improved productivity and labor-saving achieved through renewal of the Kyushu Kotake plant
• Expansion of the maintenance business centered on Suruga Giken Co., Ltd. through M&A

Risks

• Risk of decline in orders received due to a slowdown trend in bridge-related public tender construction orders (FY2026 (ending March 2026) orders received: down 6.7% year on year)
• Slowdown in the pace of infrastructure improvement due to work-style reform constraints and funding limitations on the ordering side of large-scale expressway renewal projects
• Risk of deteriorating project profitability due to rising construction costs, including labor, materials, and transportation costs
• Constraints on construction and order-taking capacity due to severe labor shortages (chronic shortage of workers is a hindrance to achieving medium-term plan targets)
• Risk of delayed revenue recognition due to the tendency for extended preparation periods for large-scale projects
• Risk of failing to meet order plans due to delayed contracting for ECI-type projects and similar arrangements
• Risk of fluctuations in public investment budgets due to potential economic downturns influenced by factors such as U.S. trade policy