AKATSUKI EAZIMA CO., LTD.

Business Details

Centered on Ibaraki Prefecture, this segment handles the full range of building equipment installation work, including building facilities construction, renovation work, and building care (maintenance) work. Serving both public and private sector clients, it provides an integrated service from new equipment installation to renewal and maintenance of existing facilities. In FY2025 (ended August 2025), contract completion revenue was ¥8,945 million, accounting for 97.9% of total company sales, making it the core business. For the nine months cumulative of FY2026 (ending August 2026), contract completion revenue reached ¥6,945 million and orders received reached ¥9,688 million, maintaining a high level of activity.

Recent Overview

Orders received rose 19.2% year-on-year to ¥9,688 million, and segment operating profit also rose 15.3% on improved construction profit margins.

In the nine months cumulative period of FY2026 (ending August 2026), orders received in the equipment business expanded substantially to ¥9,688 million (up 19.2% year-on-year). All work types increased: building facilities construction work (+12.8%), renovation work (+33.9%), and building care work (+10.6%). Backlog remained at a high level of ¥11,532 million (up 28.6% year-on-year), expanding the capacity for future revenue recognition. Due to improved construction profit margins, segment operating profit rose to ¥1,357 million (up 15.3% year-on-year), with operating margin improving to 19.5%.

Key Products

Growth Drivers

• Orders received expanded substantially to ¥9,688 million (up 19.2% year-on-year), and backlog of ¥11,532 million (up 28.6% year-on-year) supports future revenue recognition capacity
• Improved construction profit margin: strengthened profitability at the order-taking stage, thorough cost management, and construction management improved the nine-months cumulative segment operating margin to 19.5% (from 17.6% in the prior-year period)
• Contract completion revenue from building facilities construction work expanded sharply, up 45.0% year-on-year, shifting the sales composition ratio from 38.9% to 54.4%
• Government and private-sector construction investment maintained a certain level, with continued acquisition of large-scale projects in medical, educational, and logistics facilities
• Orders received for renovation work recovered sharply, up 33.9% year-on-year, reflecting continued sole-source orders backed by strong relationships with existing clients
• Expanded order opportunities through enhanced energy-saving and renovation proposals (comprehensive proposals including architectural and electrical equipment)

Risks

• Rising construction costs and intensifying order competition due to chronic shortage of skilled technical workers and surging construction material prices
• Risk of construction delays due to supply chain disruptions arising from sharp fluctuations in demand
• Decline in private-sector capital expenditure appetite due to the impact of U.S. tariff policy and heightened geopolitical risk
• Suppressed capital expenditure due to worsening consumer sentiment amid price increases and heightened wariness over interest rate trends
• Risk of deteriorating order profitability due to the high proportion of competitively-bid orders in building facilities construction work
• Risk that securing construction personnel and technicians will not keep pace with the rapid expansion of backlog (¥11,532 million)