YAMAU HOLDINGS CO., LTD.

Business Details

With Yamau Co., Ltd., Oita Fuji Co., Ltd., and Kumamoto Yamau Co., Ltd. as main subsidiaries, this segment manufactures and sells Civil Engineering Products (culverts, gutters, disaster prevention & mitigation products, etc.), Landscape Products (paving materials, street furniture), and Resin Concrete Products (YRG drainage covers, car stops, etc.), with Kyushu as the primary market. The main customer base consists of demand for maintenance and management of public infrastructure and disaster prevention/mitigation measures, and the majority of production is based on a forecast-based production method relying on past performance. Against group-wide sales of ¥21,243 million in FY2026 (ending March 2026), this core business accounts for ¥12,167 million in external customer sales.

Recent Overview

Sales declined 3.6% year on year, but stronger cost management drove operating income up 3.3% and improved margin to 21.4%.

External customer sales for FY2026 (ending March 2026) were ¥12,167 million (down 3.6% year on year), a decline in revenue. However, as a result of efforts to pass on rising material, raw material, and logistics costs to selling prices, along with reductions in manufacturing costs and SG&A expenses, segment profit (operating income) rose to ¥2,600 million (up 3.3% year on year), an increase in profit. The operating margin improved by 1.5 percentage points to 21.4% from 19.9% in the prior year, maintaining the highest profitability within the group.

Key Products

Growth Drivers

• Steady public investment for national resilience and disaster prevention/mitigation (maintenance and renewal measures for aging infrastructure, development of disaster prevention infrastructure)
• Improved profit margin through progress in passing on rising material, raw material, and logistics costs to selling prices (operating margin of 21.4% in FY2026, ending March 2026, a 1.5-point improvement year on year)
• Improved profitability through efforts to reduce manufacturing costs and SG&A expenses
• Deepening of existing business areas and promotion of structural reform under the medium-term management plan "Plan C³" (April 2024 to March 2027)
• Group-wide sales for FY2027 (ending March 2027) are projected at ¥22,200 million (up 4.5% year on year), with recovery expected as the flagship segment

Risks

• Medium- to long-term trend of reduced domestic public investment (risk of gradual decline in the Kyushu market)
• Cost pressure risk from sustained high prices of materials, raw materials, and energy
• Inventory risk from demand fluctuations and risk of delayed pass-through of selling price increases, due to reliance on forecast-based production
• Risk of future demand decline associated with population decrease and shrinking domestic market
• Risk of fluctuations in public investment plans due to macroeconomic uncertainty, including the impact of U.S. trade policy
• Risk of rising crude oil and petroleum-derived product prices and risk to stable procurement due to escalating tensions in the Middle East