Kawasaki Geological Engineering Co.,Ltd.
4673・Standard Market・Services
Business
Kawasaki Geological Engineering Co.,Ltd. was founded in 1951 and is a comprehensive construction consulting corporate group with a history of over 80 years. Centered on Geological & Soil Survey, it provides a wide range of services including environmental, disaster prevention, and marine surveys, surveying, construction planning and design, and construction management and works. The group consists of four companies, including the consolidated subsidiary Union Corporation (Geological & Soil Survey, surveying and design), the affiliated company Cultural Property Research Corporation (microfossil analysis, cultural property research), and OHYA UNDERGROUND ENERGY Co., Ltd. (groundwater heat supply). Its main customers are government agencies such as the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of Defense, with sales to the Ministry of Defense reaching ¥3,923 million (30.9% of sales) in FY2025 (ending November 2025). Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
A order-based business model in which the company receives orders for geological survey and consulting work from public agencies such as the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of Defense, as well as from private-sector operators, and recognizes revenue on a completion basis or progress basis. In FY2025 (ending November 2025), orders received totaled ¥13,188 million and net sales totaled ¥12,709 million. To improve profitability, the company has been raising the share of Consulting (Design & Analysis) work to approximately 28% of total order value, and the expansion of consulting work—whose cost ratio is 5 to 7 points lower than that of the business overall—is contributing to an improvement in profit margins.
Company Strengths
The company owns Japan's largest steel jacket structure capable of operating at water depths of 50m, and conducts large-scale offshore soil surveys using SEP (self-elevating platform) vessels and large ships. Sales to the Ministry of Defense in FY2025 (ending November 2025) reached ¥3,923 million (30.9% of sales), approximately three times the previous fiscal year. The company has established a marine survey system capable of providing one-stop services from acoustic surveying to boring.
Since its founding in 1951, the company has expanded its branches, sales offices, and offices nationwide from Hokkaido to Kyushu and Okinawa. It made Union Consultant Co., Ltd. (Hokkaido) a subsidiary in December 2022, and Meiou Soil Survey & Design Co., Ltd. (Okinawa) a subsidiary in December 2025, continuously strengthening its regionally focused area strategy.
In FY2025 (ending November 2025), the first year of the 6th Medium-Term Management Plan (75th to 77th terms), the company achieved actual sales of ¥12,709 million against a planned sales target of ¥10,800 million (achievement rate of 117.7%), and actual operating profit of ¥666 million against a planned target of ¥400 million (achievement rate of 166.5%), significantly exceeding the plan.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded from ¥8,755 million (FY2021) to ¥12,709 million (FY2025), an upward trend. For the interim period of FY2026 (ending November 2026), revenue was ¥5,372 million (up 2.8% year on year), a modest increase, while cost of sales was significantly compressed to ¥3,119 million (from ¥3,838 million in the same period of the prior year), sharply improving the gross profit margin to 41.9% (from 26.6% in the same period of the prior year). Operating profit reached ¥1,121 million (up 294.3% year on year), ordinary profit ¥1,133 million (up 246.2%), and interim net profit ¥760 million (up 142.8%), marking a notable improvement on the profit side. As an external factor, the Cabinet decision (June 2025) on the First Mid-Term Implementation Plan for National Resilience has underpinned the public works environment. The full-year forecast calls for revenue of ¥10,500 million (down 17.4% year on year) and operating profit of ¥1,000 million (up 50.2%), reflecting a structure in which the revenue decline caused by the drop-off of large-scale projects from the prior year is offset by improved profit margins.
Growth Strategy
Accelerating growth through three pillars—defense, renewable energy, and M&A—while improving profitability by raising the proportion of consulting work
Against the backdrop of the First Mid-Term Implementation Plan for National Resilience (FY2026–FY2030, roughly over ¥20 trillion in scale) adopted by the Cabinet in June 2025, the company is actively securing orders for natural disaster and disaster prevention-related work as well as Infrastructure Maintenance & Management work for roads, sewerage, and other infrastructure. Steady growth in the public works environment is expected.
The company positions geological survey work related to defense capability enhancement, such as offshore soil survey work for the Ministry of Defense, as a growth area, with efforts undertaken through the unified cooperation of all employees. This is a field where a high degree of specialized expertise and a track record serve as barriers to entry, allowing the company to demonstrate competitive advantage.
The company is advancing renewable energy work such as offshore wind power and CCS, as well as marine resource development-related work, as growth drivers. It leverages its long-accumulated technical expertise in Marine Survey to capture demand arising from the energy transition.
In the first half of FY2026 (ending November 2026), the company newly consolidated Meiou Doshitsu Sokuryo Sekkei Co., Ltd. as a subsidiary (acquisition expenditure of ¥93 million). Through M&A of regionally rooted companies, the company aims to expand its technical capabilities, human resources, and regional networks, thereby strengthening its order-taking base.
By increasing the proportion of high-value-added Consulting (Design & Analysis) work, the company aims to lower its cost-of-sales ratio and structurally improve profitability. The gross profit margin of 41.9% for the first half of FY2026 (ending November 2026) (26.6% in the same period of the previous year) reflects part of this achievement.
Last updated: July 17, 2026