SEKISUI JUSHI CORPORATION

Business Details

This segment mainly engages in the manufacture, processing, and sale, as well as construction work, of soundproof wall materials, traffic safety products, road marking materials, road signs, pedestrian and vehicle guardrails, snow and wind protection fences, artificial turf, shelters, and other products. Customers are primarily public sector entities such as the Ministry of Land, Infrastructure, Transport and Tourism, urban expressway operators, railway operators, and local governments. The company has expanded its business scale through M&A in Europe (WEMAS Group) and Hokkaido (Riken Kogyo), capturing demand for public infrastructure safety and security both domestically and abroad.

Recent Overview

Consolidation of Riken Kogyo and steady performance of existing businesses drove substantial increases in both sales and profit

In FY2026 (ending March 2026), Public Sector segment sales were ¥41,589 million (up 7.1% year on year), and segment operating profit improved substantially to ¥2,728 million (up 46.8% year on year). This was mainly attributable to the sales contribution from snow and wind protection products following the consolidation of Riken Kogyo Co., Ltd. While soundproof wall materials, road marking materials, and artificial turf performed favorably, traffic safety products saw profit decline year on year due to the completion of a cycle of electronic product installations and investment in strengthening operational systems. The landscape-related business was affected by a lull between trial installations of head-on collision prevention products for expressways, resulting in both sales and profit for that business falling below the same period of the prior year.

Key Products

Growth Drivers

• Continued sales contribution from snow and wind protection products following the consolidation of Riken Kogyo Co., Ltd. as a subsidiary
• Steady performance of temporary traffic safety products from the WEMAS Group (Europe) and generation of profit exceeding goodwill amortization
• Expanded proposals of environmentally friendly artificial turf products and increased adoption for large-scale sports grounds
• Continued orders for expressway and railway applications and proactive approach to next-period projects, driven by favorable evaluation of design responsiveness for soundproof wall materials
• Expanded adoption in residential road and school route improvement projects due to quality improvements and enhanced delivery responsiveness for road marking materials and sign-related products
• Spread of remote infrastructure monitoring and disaster-prevention DX through the remote-operable LED display board "Opto Marker ICOT"
• Expanded adoption of guardrails in urban area development and river/coastal safety projects
• Strengthening of the global business foundation, centered on Europe and Southeast Asia, and business expansion in the Hokkaido priority strategic region

Risks

• Goodwill amortization burden associated with M&A (WEMAS Group, Riken Kogyo) continuing to pressure profit (Public Sector goodwill amortization of ¥1,366 million in FY2026, ending March 2026)
• Impact on soundproof wall materials, road marking construction, and structure maintenance work due to reduced expressway maintenance budgets
• Sluggish demand for guardrails due to the completion of a cycle of school route safety measures and a trend of reduced budgets for guardrail replacement work
• Downward pressure on landscape-related business performance due to a lull between trial installations of head-on collision prevention products for expressways
• Risk of a ceiling on traffic safety product sales due to the completion of a cycle of installations of electronic products for visibility impairment countermeasures in snowy regions
• Decline in profit margins due to deteriorating procurement conditions and price increases for petroleum-derived raw materials and auxiliary materials
• Intensifying competition for elastic bollards and similar products in Europe
• Impact of goodwill and customer-related asset revaluation associated with the finalization of provisional accounting treatment related to the business combination (Riken Kogyo)