ENVALITH
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Nihon Suido Consultants Co., Ltd.

261A・Standard Market・Services

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株式会社日水コン logo
Nihon Suido Consultants Co., Ltd.261A

Business

Nissuiken Co., Ltd. was established in 1959 as a specialized water supply consultant and provides technical consulting services including surveying, planning, design, and construction supervision for water infrastructure centered on water supply and sewerage systems. The company has departments covering water supply, sewerage, rivers and erosion control, construction, mechanical and electrical engineering, and DX, and its clients are mainly public institutions such as government agencies. Government agency projects account for 93.5% of net sales, and the company has a network of branch offices nationwide, as well as a track record of overseas projects in Southeast Asia, India, Africa, and other regions. In recent years, the company has actively expanded into the PPP/PFI (public-private partnership) field, expanding its business domain through initiatives such as participation in the integrated public-private partnership operation project for water supply, industrial water, and sewerage in Miyagi Prefecture, and the establishment of Japan's first SPC supporting Water PPP [Level 3.5].

Business Model

Teams of specialists across civil engineering, architecture, machinery, electrical engineering, water quality, and information technology carry out survey and design work commissioned by government and public offices, generating revenue by delivering reports and other outputs. Government and public office projects account for 93.5% of net sales, and trust relationships built through involvement in supporting national policy formulation underpin continued order intake. The order backlog accumulates at a level nearly equivalent to net sales (¥24,759 million), enhancing visibility into the following period's sales.

Company Strengths

Of net sales of ¥24,413 million, ¥22,833 million (93.5%) came from public sector projects. By being involved in national policy formulation support work and thoroughly understanding the relevant systems, the company secures continued orders from local governments. Consolidated orders received for FY2025 (ending December 2025) reached ¥26,518 million (up 10.9% year on year), and the order backlog remained at a high level of ¥24,759 million (up 9.1% year on year).

Since its founding in 1959, the company has accumulated technical expertise specialized in water supply and sewerage, employing diverse specialists in civil engineering, architecture, building equipment, machinery, electrical engineering, water quality, and information systems. It has continued R&D activities centered on its Central Research Institute, established in 1972, investing around 1% of net sales in R&D (¥195 million in the current period). The company has obtained company-wide certification for an integrated management system covering ISO9001, 14001, 27001, and 55001.

In 2021, the company participated in Miyagi Prefecture's integrated water supply, industrial water, and sewerage public-private partnership operation project, Japan's first large-scale water infrastructure concession business. In 2023, it established a wide-area complementary organization jointly funded with all municipalities in Akita Prefecture. In 2024, it established Rifrex Co., Ltd., Japan's first SPC corresponding to Water PPP [Level 3.5], establishing a first-mover advantage in the PPP/PFI & Public-Private Partnership Support field.

ENVALITH's Perspective

In Q1 FY2026 (ending December 2026), revenue reached ¥7,409 million (up 4.0% year-on-year), securing revenue growth, while operating profit was ¥1,234 million (down 8.7% year-on-year), with the operating profit margin declining sharply to 16.7% from 19.0% in the same period last year. Cost of sales increased at a pace exceeding revenue growth, reaching ¥5,000 million (up 7.7% year-on-year), clearly illustrating a structure in which rising cost pressures from labor expenses and other factors are squeezing profits. Achieving the full-year operating profit forecast of ¥2,410 million (up 1.3% year-on-year) will require a recovery in the second half, and cost management trends warrant close monitoring.

Consolidated order intake in Q1 FY2026 (ending December 2026) fell sharply to ¥2,813 million, down 55.5% year-on-year. The order backlog also declined to ¥20,160 million, down 7.6% year-on-year, suggesting signs of softening in the current order environment. Despite continued focus on Water PPP-related projects and aging infrastructure countermeasures, the impact of declining orders in the rivers and other segments is directly reflected in revenue (¥821 million, down 25.7% year-on-year). Order trends serve as a leading indicator of performance in subsequent periods, making the recovery of order intake from Q2 onward a key focus.

The annual dividend forecast for FY2026 (ending December 2026) has been maintained at ¥74.00 (unchanged from the previous fiscal year), which can be viewed favorably in terms of stability of shareholder returns. On the other hand, the equity ratio declined from 59.8% at the end of FY2025 (ending December 2025) to 55.1% at the end of Q1 FY2026 (ending December 2026). This is mainly attributable to an increase in liabilities driven by growth in contract liabilities (¥3,870 million) and provision for bonuses (¥3,427 million), which is considered largely due to seasonal factors; nevertheless, the level of net assets at ¥15,269 million against total assets of ¥27,393 million remains sound. Equity in earnings of affiliates accounted for by the equity method increased substantially to ¥42 million (from ¥9 million in the same period last year), and the expanding earnings contribution from affiliated companies is a positive factor over the medium term.

Growth Strategy

Under Vision 2030, the company targets net sales of ¥30.0 billion, an operating margin of 10%, and ROE of 10%.

The company is capturing an increase in public-private partnership projects based on the Cabinet Office's PPP/PFI Promotion Action Plan. It has already established Japan's first SPC (special purpose company) compatible with Water PPP [Level 3.5], leveraging this early track record. In the first quarter of FY2026 (ending December 2026), the company continued to focus on Water PPP-related operations in both the water supply and sewerage fields, with water supply segment sales up 16.8% year-on-year, demonstrating results.

Demand for renewal of pipelines and other infrastructure laid during the period of high economic growth is expanding nationwide, with continued renewal demand for over ¥40 trillion in water supply assets. Following the Noto Peninsula earthquake in January 2024 and the road collapse accident in Yashio City, Saitama Prefecture in January 2025, demand for disaster countermeasures and anti-aging measures has increased further. The company continues to work on aging and seismic resilience measures across the water supply, sewerage, and river fields.

As part of Vision 2030, the company aims to expand its business beyond the traditional construction consulting domain into PPP/PFI and agriculture-related areas. It is also pursuing new water-related businesses, such as small-scale hydroelectric power generation. Equity method investment gains increased significantly to ¥42 million in the first quarter of FY2026 (ending December 2026), up from ¥9 million in the same period of the previous year, indicating growing profit contributions from affiliates and overseas operations.

Last updated: July 17, 2026