IBOKIN Co.,Ltd.

Business Details

A business that undertakes demolition and removal work for building structures and plants/machinery equipment as a general contractor. Having obtained a specific construction business license, it can directly receive orders for large-scale projects. By supplying by-products generated at demolition sites (ferrous/non-ferrous scrap, industrial waste) to the Environmental Business and Metal Business, it forms a "one-stop service." The company aims to expand nationwide, centered on the Kinki and Chugoku areas. Construction capacity is being expanded together with Mitsue Co., Ltd. (made a subsidiary in January 2025) and Kokutoku Kogyo Co., Ltd.

Recent Overview

Large decline in sales due to fewer new construction starts, but profit increased and margin improved significantly due to successful application of new construction method

In the first quarter (January to March) of FY2026 (ending December 2026), the Demolition Business saw a significant decline in sales to ¥595 million (down 30.1% year on year) due to a decrease in new construction start projects. On the other hand, the successful application of the new construction method (patent pending) to high-difficulty projects contributed to an increase in operating income to ¥121 million (up 17.8% year on year). The operating margin improved significantly to 20.3% from 12.1% in the same period of the prior year. The order backlog recovered to ¥1,019 million from ¥829 million at the end of the previous fiscal year, indicating progress in building up a pipeline for future sales recognition. The number of construction supervisors was 38 (down 3 from 41 at the end of the previous fiscal year).

Key Products

Growth Drivers

• Demolition demand is expanding nationwide as buildings and plants constructed during the period of rapid economic growth (from the 1960s onward) reach the time for renewal or demolition
• Since the 2016 revision of the Construction Business Act, opportunities for separate ordering of demolition work have increased, expanding direct orders to specialized demolition contractors
• Aiming to increase the number of general contractor orders for large-scale projects by expanding the specific construction business license and first-class construction management engineers
• Improving profitability and establishing competitive advantage through expanded application of a new construction method (patent pending) for high-difficulty projects
• Strengthening construction capacity and order-taking ability through synergy with Mitsue Co., Ltd. (made a subsidiary in January 2025) and Kokutoku Kogyo Co., Ltd.
• Nationwide business area expansion utilizing an alliance network of approximately 30 companies across the country

Risks

• Risk related to the accuracy of construction cost estimates: there have been instances where actual costs significantly exceeded estimated costs on multiple projects, leading to a substantial profit decline in FY2025 (ended December 2025)
• Risk of sales fluctuation due to a decrease in new construction start projects (down 30.1% year on year in Q1 FY2026 results)
• Difficulty in securing qualified personnel such as first-class construction management engineers and construction supervisors (38 supervisors as of end of March 2026) limits the upper bound of construction capacity
• Uncertainty in estimates related to revenue recognition based on construction progress (timing discrepancies in recognizing completed construction revenue)
• Risk of increased integration and management costs related to subsidiaries (Mitsue and Kokutoku Kogyo)