ENVALITH
株式会社ACKグループ logo

ACKG Limited

2498・Standard Market・Services

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株式会社ACKグループ logo
ACKG Limited2498

Business

ACK Group Co., Ltd. is a pure holding company centered on Oriental Consultants Co., Ltd., forming a corporate group that includes 16 consolidated subsidiaries and affiliated companies. In its core Infrastructure Management Services Business, the company provides intellectual services such as planning, survey, design, and supervision for roads, rivers, transportation, ports, and other infrastructure both domestically and internationally, accounting for approximately 83% of group revenue. It also operates the Environmental Management Business (geological surveys, demolition works, etc.) and other businesses including IT-related solutions. Its major customers are the Ministry of Land, Infrastructure, Transport and Tourism (revenue of ¥12,990 million, 13.6% of composition) and the Department of Transportation of the Republic of the Philippines (revenue of ¥14,990 million, 15.7% of composition), with government agencies and public institutions forming its primary customer base. Listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The business model is fundamentally order-based. Domestically, the company secures stable orders backed by public budgets such as the "Five-Year Acceleration Plan for Disaster Prevention, Mitigation and Building National Resilience." Overseas, it captures infrastructure development demand in developing countries, accumulating large-scale orders centered on ODA projects. The cost structure is mainly composed of personnel expenses and outsourcing costs, and the buildup of order backlog serves as a leading indicator for revenue and profit. Orders received in FY2025 (ended September 2025) totaled ¥97,654 million (up 9.7% year on year), exceeding net sales, indicating high visibility into future earnings.

Company Strengths

The 2030 Medium-Term Management Plan sets targets of 1,300 or more registered professional engineers and 100 or more PhD holders, with roughly half a century of experience in construction consulting operations and specialized human capital serving as the source of competitive advantage. R&D expenses of ¥616 million were recorded in the fiscal year under review, with continuous technology development pursued across 10 domains domestically and internationally.

Sales to the Ministry of Land, Infrastructure, Transport and Tourism reached ¥12,990 million (up 14.2% year on year), and sales to the Department of Transportation of the Republic of the Philippines reached ¥14,990 million (up 67.0% year on year), reflecting an expanding trend in transactions with both major customers. Long-term relationships of trust with government agencies and public institutions form the foundation for stable order intake, and orders received in the fiscal year ended September 2025 reached ¥97,654 million (up 9.7% year on year).

Backed by continued execution of domestic public works under the "Five-Year Acceleration Plan for Disaster Prevention, Mitigation and Building National Resilience," domestic orders received reached ¥65,517 million (up 12.3% year on year). Overseas, the company captured infrastructure development demand in developing countries, winning large-scale bridge projects and other orders, securing overseas orders received of ¥32,137 million (up 4.8% year on year).

ENVALITH's Perspective

For H1 FY2026 (ending September 2026), net sales were ¥49,046 million (up 5.9% year on year), operating profit was ¥4,620 million (up 15.6% year on year), and net income attributable to owners of the parent for the interim period was ¥3,500 million (up 22.1% year on year), achieving double-digit growth at every profit level. Against the full-year forecast (net sales of ¥97,000 million, operating profit of ¥5,800 million), the interim progress rate stood at a high 50.6% for net sales and 79.7% for operating profit. Even factoring in the second-half-weighted seasonality, the probability of achieving the full-year forecast is judged to be high.

Operating cash flow for the interim period was ¥-9,592 million (versus ¥-7,771 million in the same period of the previous year), with the deficit widening. The main cause was an increase in trade receivables and contract assets (¥-11,498 million), reflecting a structural seasonal gap between revenue recognition under the percentage-of-completion method and cash collection. The balance of short-term borrowings swelled to ¥33,700 million (up ¥15,235 million from the previous fiscal year-end), and the equity ratio declined to 32.1% (from 36.4% at the previous fiscal year-end). As an external factor, higher interest expense amid rising interest rates (¥173 million for the interim period, up 47% year on year) is also weighing on profitability.

Operating profit for the Environmental Management Business in the interim period surged to ¥924 million, up 100.1% year on year, but this may partly reflect a temporary profit boost dependent on the progress timing of large-scale projects. Segment net sales were ¥7,698 million (up 13.3% year on year), and whether the substantial improvement in profit margin will continue depends on the state of the project pipeline going forward. The segment's contribution to the full-year forecast warrants close scrutiny.

Growth Strategy

Aiming to become a company that creates social value through three pillars: focused expansion into 10 domestic and overseas markets, promotion of DX, and strengthening human resources

Following the "Five-Year Acceleration Plan for Disaster Prevention, Mitigation, and Building National Resilience" (through FY2025), the company will leverage the "First Mid-Term Implementation Plan for National Resilience" starting in FY2026 as a source of order opportunities. It aims to maintain and expand a stable order base centered on disaster prevention and mitigation-related hardware and software measures, as well as maintenance operations for roads, rivers, ports, and other infrastructure.

Capturing infrastructure development demand in developing countries, the company achieved a 36.9% year-on-year increase in overseas interim orders received, driven by the additional contract for a large-scale railway (track) project, among others. The company is pursuing diversified overseas market development across five fields—smart city development, O&M business, DX business, and business investment—to diversify its revenue base.

Accelerated progress on large-scale projects led to a sharp expansion in operating profit for the first half of FY2026 (ending September 2026), up 100.1% year on year. Against the backdrop of demand for maintenance and renewal of aging infrastructure and continued execution of public works, the company aims to increase this segment's contribution to earnings and improve the group's overall profit structure.

Sales in Other Businesses (IT-related) remained solid, reaching ¥1,143 million in the first half (up 4.2% year on year). The company is capturing growing demand for IT solutions driven by group-wide DX promotion initiatives, as well as increased internal group demand accompanying the growth of the Infrastructure Management Services Business and the Environmental Management Business.

Last updated: July 17, 2026