MIYAJI ENGINEERING GROUP, INC.

Business Details

A business segment operated by Miyaji Engineering Co., Ltd. It handles a wide range of businesses including the design, manufacturing, and on-site construction of new bridges, the maintenance, repair, and reinforcement of existing bridges, the design, manufacturing, and construction of steel structures and composite structures around bridges, as well as sales of FRP structures, prestressed concrete bridge and civil engineering business, large-span and super-high-rise buildings, steel towers, chimneys, factory buildings, and seismic retrofitting/base isolation work for existing structures. Its major customers are public institutions such as the Ministry of Land, Infrastructure, Transport and Tourism and West Nippon Expressway Company. In FY2026 (ending March 2026), it accounted for approximately 68.5% of group sales, making it the core segment.

Recent Overview

Sales fell 12.7%, but operating profit remained nearly flat due to efficiency improvement efforts

In FY2026 (ending March 2026), sales were ¥38,792 million (down 12.7% year on year) due to a decrease in large-scale new-construction-related projects. On the other hand, thanks to efforts to improve production efficiency, construction profitability, and work-style reform, operating profit remained nearly flat at ¥3,976 million (down 0.6% year on year). Orders received declined significantly to ¥30,706 million (down 31.8% year on year) amid a challenging business environment, and the order backlog also shrank to ¥55,116 million.

Key Products

Growth Drivers

• Stable earnings base through steady recognition of sales from the order backlog of ¥55,116 million (end of FY2026, ending March 2026)
• Mid- to long-term demand from continued ordering of expressway large-scale renewal and maintenance work (business scale of approximately ¥7 trillion)
• Robust demand for railway-related construction such as terminal station redevelopment and continuous grade separation projects in the Tokyo metropolitan area
• Progress on highly complex major projects such as the Osaka Bay Route Western Extension, the Meishin Bay Route Connecting Bridge, and the Shimonoseki-Kitakyushu Road
• Continued efforts to improve production efficiency, construction profitability, and operational efficiency through DX
• Expectations for recovery in the market environment, including new-construction-related demand, driven by the comprehensive economic package aimed at realizing a "strong economy"

Risks

• Deterioration of the order environment due to a decline in new bridge construction orders (expected to fall to a scale of ¥1,800 million in FY2027, ending March 2027)
• The continuing trend of shrinking new contract scale in large-scale renewal and maintenance-related work
• Impact on construction profitability from trends in the price of steel materials, a key raw material
• Declining order volume on a workload basis due to soaring construction unit prices resulting from wage and price increases
• Uncertainty in order volume due to fluctuations in public works budgets of national and local governments
• Risk of temporary earnings decline due to the long lag between order receipt and revenue/profit recognition