The Takigami Steel Construction Co.,Ltd.
5918・Standard Market・Metal Products
Steel Structure Manufacturing Business
Core group business handling design, fabrication, and construction of bridges, steel frames, and steel structures
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction contracts (net sales) | ¥20,697 million | ¥20,679 million | — |
| Segment operating income (loss) | ¥320 million | -¥545 million | ↑ |
| Orders received (total) | ¥13,407 million | ¥24,051 million | ↓ |
| Order backlog (total) | ¥30,319 million | ¥38,655 million | ↓ |
| Capital expenditure (increase in tangible and intangible fixed assets) | ¥260 million | ¥1,224 million | ↓ |
| Segment assets | ¥34,960 million | ¥33,783 million | ↑ |
Business Details
The core segment accounting for approximately 88% of the Group's net sales. It handles the design, fabrication, and construction of steel bridges, steel frames, and other steel structures on an integrated basis, with major customers including public infrastructure clients such as West Nippon Expressway Company Limited, the Ministry of Land, Infrastructure, Transport and Tourism, and Central Nippon Expressway Company Limited. Subsidiaries include Kikuchi Tekkosho Co., Ltd. (steel frame processing) and Takigami Construction Industry Co., Ltd. and Tokyo Flag Co., Ltd. (on-site construction). Improved profitability in bridge maintenance works and the securing of design changes in new bridge construction significantly boosted performance for the current fiscal year.
Recent Overview
Turned profitable from an operating loss in the prior year on improved maintenance work profitability and securing of design changes
In FY2026 (ending March 2026), improved profitability in bridge maintenance works and design changes secured in new bridge construction contributed significantly to earnings, resulting in a turnaround to segment operating income of ¥320 million (compared with an operating loss of ¥545 million in the prior period). On the order side, however, there were few large-scale orders for new bridge construction, and a shortage of engineers reduced order-taking opportunities, leading to a sharp decline in orders received in the bridge division to ¥11,287 million (down 42.5% year on year) and in the steel frame division to ¥2,119 million (down 52.1% year on year), with the order backlog declining to ¥30,319 million (down 21.6% year on year). K-System 23 Co., Ltd., belonging to the Machine Tool Manufacturing Business segment, was dissolved on June 30, 2025.
Key Products
Growth Drivers
- Continued demand in the bridge maintenance market: demand in the repair and renewal field is expected to be supported over the medium to long term by disaster prevention and mitigation measures and aging infrastructure countermeasures under the National Resilience Plan
- Profitability improvement through securing design changes: reliably securing design changes for ongoing works significantly boosted performance in the current fiscal year, and continued earnings improvement effects are expected going forward
- Diversification of order-taking regions and clients: expanding beyond the Chubu region-centered order base to broaden the range of regions and clients, and strengthening research capabilities and technical proposal capabilities for orders not limited to steel bridges
- Promotion of collaboration with Kikuchi Tekkosho Co., Ltd.: actively promoting collaborative projects with group companies to enhance competitiveness and presence in the steel frame and steel structure business field
- Expanding order-taking opportunities through engineer reinforcement: strengthening the deployment of engineers through internal transfers and hiring of immediately effective personnel, to curb the loss of order-taking opportunities due to engineer shortages
Risks
- Sharp decline in order backlog: the order backlog at the end of the current fiscal year fell to ¥30,319 million, down 21.6% year on year, posing a risk of downward pressure on sales and earnings in future periods
- Structural decline in steel road bridge order volume: the volume fell 28.2% year on year to approximately 90,000 tons, a record low, and the medium- to long-term contraction of the new bridge construction market is expected to continue
- Shortage of engineers and factory workers: chronic labor shortages create risks of lost order-taking opportunities and construction delays, constraining expansion of orders in the bridge maintenance division
- Increasing caution in private construction investment: revisions of construction plans and postponement of construction starts continue amid persistently high material prices and heightened uncertainty about the outlook, posing a risk of delayed recovery in steel frame demand
- Persistently high raw material and energy prices: persistently high raw material and energy prices stemming from the conflict in Ukraine and the situation in the Middle East are squeezing construction profitability and lowering profit margins
- Intensifying order competition: order competition has intensified against the backdrop of declining steel road bridge order volumes, making it difficult to maintain order volume while securing profitability
Last updated: June 25, 2026