ACKG Limited

Business Details

A global comprehensive consulting business that provides intellectual services such as planning, surveying, design, evaluation, and guidance both domestically and internationally. Major subsidiaries include Oriental Consultants Co., Ltd. and Oriental Consultants Global Co., Ltd. Domestically, the segment focuses on disaster prevention/mitigation and maintenance work for roads, rivers, ports, etc., with the Ministry of Land, Infrastructure, Transport and Tourism as its main customer; overseas, it captures infrastructure development demand in developing countries. In the first half of FY2026 (ending March 2026), sales to external customers were ¥40,205 million, accounting for approximately 82% of the group's total first-half sales of ¥49,046 million, making it the core segment.

Recent Overview

Solid performance both domestically and overseas. First-half sales of ¥40,205 million (up 4.8% year on year), operating profit of ¥3,527 million (up 4.1% year on year).

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), sales of hard and soft measures related to disaster prevention/mitigation and maintenance management work for roads, rivers, ports, etc. remained solid, resulting in sales to external customers of ¥40,205 million (up 4.8% year on year) and operating profit of ¥3,527 million (up 4.1% year on year). Domestic orders decreased 10.0% year on year due to the reversal effect of major demolition work orders received in the prior first half, but overseas, the order environment remained favorable, supported by the signing of additional contracts for large-scale railway projects, among other factors.

Key Products

Growth Drivers

• Continued execution of domestic public works under the "Five-Year Acceleration Plan for Disaster Prevention/Mitigation and National Resilience" and transition to the "First National Resilience Implementation Medium-Term Plan" starting in FY2026
• Continued robust infrastructure development demand in developing countries (overseas first-half orders increased 36.9% year on year, including the signing of additional contracts for large-scale railway projects)
• Stability of the sales base due to continued stable order intake for maintenance management work for roads, rivers, ports, etc.
• Expansion of the order base through strengthening of domestic and overseas bases, including local design centers
• Focused business development in five domestic market areas (infrastructure development/maintenance, water management/conservation, disaster prevention, transportation, regional revitalization) and five overseas market areas (private sector projects, smart city development projects, O&M projects, DX projects, business investment)

Risks

• Risk of increased working capital and increased accounts receivable and contract assets due to progress on overseas ultra-large-scale projects (notes and accounts receivable and contract assets at the end of the first half were ¥53,460 million, up ¥11,498 million from the end of the previous fiscal year)
• Impact of foreign exchange rate fluctuations on overseas sales and profit
• Risk of deterioration in the overseas order environment due to unstable international conditions such as U.S. tariff policy, the prolonged situation in Ukraine, and escalating tensions in the Middle East
• Fluctuation in domestic orders due to the reversal effect of temporary large-scale projects such as major demolition work in the prior first half (domestic orders in the current first half decreased 10.0% year on year)
• Risk of constraints on order intake and production capacity due to delays in securing qualified personnel such as licensed professional engineers and in talent development