NIPPON CONCRETE INDUSTRIES CO., LTD.
5269・Prime Market・Glass & Ceramics Products
Foundation Business
Core business handling manufacturing and sale of concrete piles, along with pile driving and ground improvement works
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year) | ¥22,013 million | ¥24,224 million | ↓ |
| Segment Profit (Full Year) | -¥190 million (loss) | ¥118 million (profit) | ↓ |
| Segment Assets | ¥22,596 million | ¥21,223 million | ↑ |
| Depreciation (Full Year) | ¥696 million | ¥774 million | ↓ |
| Capital Expenditures (Full Year) | ¥921 million | ¥756 million | ↑ |
Business Details
The Foundation Business primarily manufactures and sells Concrete Piles (PHC Piles, etc.) and provides pile driving and ground improvement works. The Company and its domestic subsidiaries and affiliates participate as constituent companies, supplying foundation products for social infrastructure that supports construction demand nationwide. Performance tends to correlate closely with nationwide demand trends for concrete piles, and the business structure is such that fluctuations in construction investment and timing shifts in projects directly affect earnings. In FY2026 (ending March 2026), the segment fell into a segment loss due to difficulties in winning large-scale orders and deteriorating earnings at production subsidiaries.
Recent Overview
Fell into a segment loss due to difficulties winning large-scale orders and deteriorating earnings at production subsidiaries
Net sales of the Foundation Business in FY2026 (ending March 2026) were ¥22,013 million (down 9.1% year on year). Nationwide demand for concrete piles remained roughly flat year on year, but the Group's sales declined as difficulties in winning large-scale orders and timing shifts in projects were only partially offset by a recovery in the second half. On the earnings side, the segment fell into a segment loss of ¥190 million (versus a segment profit of ¥118 million in the prior period) due to the decline in net sales and deteriorating earnings at production subsidiaries, among other factors. In addition, the Company recorded an impairment loss of ¥21 million on idle assets related to the restructuring of production facilities at the Kasaoka Plant of NC Kaibara Pile Manufacturing Co., Ltd. As part of the restructuring of production facilities, the Company has begun suspending operations at some plants and consolidating manufacturing lines.
Key Products
Growth Drivers
- Advancement of national resilience policy and expansion of demand for renewal of aging infrastructure
- Expanded adoption of the Company's proprietary products and construction methods for disaster prevention, mitigation, and recovery demand
- Expectations for high-quality precast concrete products responding to needs for labor-saving and productivity improvement in the construction industry
- Improved profitability through continued penetration of appropriate pricing
- Fixed-cost reduction effects from restructuring the production system (plant suspensions and consolidation of manufacturing lines)
- Acceleration of productivity improvement and new product development initiatives leveraging IT and AI
Risks
- Continued sluggishness in nationwide demand for concrete piles (roughly flat year on year in FY2026, ending March 2026)
- Risk of timing shifts due to difficulties winning large-scale orders, delayed construction starts, and extended construction periods
- Deteriorating earnings at production subsidiaries associated with declining production volume
- Rising manufacturing costs due to higher energy, raw material, and labor costs
- Instability in materials procurement due to escalating international tensions
- Additional costs and impairment risk associated with restructuring production facilities
Last updated: June 24, 2026