UEKI CORPORATION

Business Details

The Company, together with Hokuriku Shisetsu Kogyo Co., Ltd. and other consolidated subsidiaries, undertakes civil engineering, building construction, and other construction contracting work, while Ueki Kiko Co., Ltd. is responsible for the construction materials rental business. The segment serves both public and private-sector clients, operating on two pillars: government-oriented work (mainly civil engineering) and private-sector-oriented work (mainly building construction). As the core segment accounting for approximately 90% of the Group's consolidated revenue, its competitiveness is driven by productivity improvements through ICT/DX utilization and the ability to secure orders and manage construction of large-scale projects.

Recent Overview

Smooth progress on large-scale projects carried over from the prior period drove substantial increases in both revenue and profit.

In FY2026 (ending March 2026), large-scale projects carried over from the prior period, mainly in the building construction division, progressed smoothly, resulting in consolidated segment revenue of ¥57,049 million (up 28.4% year on year) and segment profit of ¥3,258 million (up 44.4% year on year), a substantial increase in both revenue and profit. On a non-consolidated basis, building construction division revenue expanded sharply, up 60.4% year on year to ¥24,349 million. On the other hand, orders received for the period declined 16.4% year on year to ¥56,584 million, a rebound decrease; however, the order backlog carried forward at period-end remained at a high level of ¥65,025 million (up 2.4% year on year), securing the revenue base for the next fiscal period.

Key Products

Growth Drivers

• Maintenance of a high order backlog carried forward of ¥65,025 million (up 2.4% year on year), securing the revenue base for the next fiscal period
• Stable construction demand driven by steady public investment (civil engineering division: orders from government clients of ¥16,096 million)
• Improvement in construction profit margins through productivity gains from ICT technology and DX promotion, and promotion of contracts at appropriate prices
• Expansion of orders for large-scale projects (factories, warehouses, etc.) in the building construction division, driven by private-sector capital expenditure demand
• Strengthening of competitiveness under the medium-term management plan (FY2025-FY2027), with focus themes on "sales capability," "technical capability," and "human capital"

Risks

• Upward cost pressure on construction costs due to persistently high construction material and energy prices
• Rising labor costs due to tight labor supply-demand conditions and a shortage/aging of skilled workers and construction engineers
• Order backlog for the period declined 16.4% year on year to ¥56,584 million, representing a rebound decrease; maintaining the mid-term order level remains a challenge
• Risk of material shortages, delivery delays, and suppressed private-sector capital expenditure due to uncertainty over overseas conditions, including the situation in the Middle East
• Seasonal fluctuation in revenue recognition (concentration in Q4) due to concentrated progress on large-scale projects, and its impact on operating cash flow