Kawagishi Bridge Works Co.,Ltd.
5921・Standard Market・Metal Products
Business
Kawagishi Kogyo Co., Ltd., founded in 1906, is a specialized steel structure manufacturer operating under the corporate philosophy of "Supporting Japan with Steel Frames." Its core business consists of the design, fabrication, and on-site installation of steel frames and other steel structures, with its subsidiary Kawagishi Planning Co., Ltd. handling Design & Cost Estimation Services (Kawagishi Planning). The company also operates a Precast Concrete business, manufacturing, selling, and installing architectural products. It maintains multiple manufacturing sites nationwide, including in Chiba, Tsukuba, Okayama, and Yamaguchi, and counts major general contractors such as Kajima Corporation, Shimizu Corporation, Taisei Corporation, and Toda Corporation among its principal customers. The company has been steadily accumulating orders centered on large-scale redevelopment projects in the greater Tokyo area, and is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
A construction contracting business model that handles everything from order receipt through fabrication, installation, and completion/delivery. The company receives individual construction orders from major general contractors such as Kajima Corporation (30.9% of net sales), Shimizu Corporation (20.2%), and Taisei Corporation (15.6%), fabricates Steel Frame (Steel Structures) at its own plant, and completes on-site installation. The order backlog serves as a leading indicator of future sales, and the order backlog at the end of September 2025 remained at a high level of ¥32,472 million.
Company Strengths
Order backlog at the end of FY2025 (ended September 2025) stood at ¥32,472 million (up 26.6% year on year). The company has secured numerous large-scale redevelopment projects in the greater Tokyo area and major cities, including Shinagawa Station West Exit, Yaesu, Minato Mirai, and the Osaka IR, providing high visibility into future revenue. Steel Frame (Steel Structures) order backlog stood at ¥29,812 million, and Precast Concrete order backlog at ¥2,660 million (up 125.9% year on year).
In FY2025 (ended September 2025), completed construction revenue decreased to ¥24,219 million (down 12.1% year on year), but gross profit increased by ¥283 million due to the early completion of highly profitable large-scale projects, and operating profit reached ¥1,873 million (up 12.2% year on year). The operating margin reached 7.7%, the highest level in the past five fiscal years.
At the end of FY2025 (ended September 2025), outstanding borrowings stood at zero. Total net assets amounted to ¥28,956 million, with an equity ratio of approximately 82.7% (net assets of ¥28,956 million ÷ total assets of ¥34,992 million), maintaining an extremely sound financial structure. Operating cash flow also improved significantly to ¥3,243 million, and cash and cash equivalents stood at ¥3,166 million.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue peaked at ¥27,566 million in FY2024 before declining to ¥24,219 million in FY2025. The full-year forecast for FY2026 is ¥22,000 million (down 9.2% year on year), projecting a further decline in revenue. In the first half of FY2026 (ending March 2026), net sales of completed construction contracts rose to ¥12,799 million (up 8.8% year on year) due to the completion of large-scale construction projects, resulting in higher revenue. However, this was directly hit by a decline in factory processing utilization rates, causing the gross profit margin on completed construction contracts to fall sharply from 12.2% in the same period of the previous year to 7.8%. Operating profit fell to ¥487 million (down 49.1% year on year) and ordinary profit to ¥584 million (down 46.4% year on year), with profits reduced to less than half. External factors—including persistently high material prices, rising logistics costs, soaring labor costs, and concerns over raw material price increases stemming from the situation in the Middle East—have compounded one another, and it remains difficult to foresee when profitability will recover. Operating cash flow contracted sharply to ¥527 million (down from ¥3,086 million in the same period of the previous year).
Growth Strategy
Under the first medium-term management plan (FY2024 to FY2026, ending September 2026), the company is advancing efforts to secure orders with an emphasis on profitability while laying the groundwork for future growth.
Amid steel frame (steel structures) demand remaining at a low, flat level, the company is prioritizing both securing orders and maintaining appropriate order pricing. Orders received in the current interim period were ¥13,069 million (down 0.8% year on year), a slight decrease, while the order backlog remained at a high level of ¥32,742 million.
While progress had been made toward passing on the previously observed increases in raw material and other costs, turmoil in the Middle East has introduced a new risk of further raw material price increases, once again clouding the outlook for cost pass-through. Recovering the gross profit margin on completed construction contracts remains a challenge.
Expenditures on acquisition of tangible fixed assets in the current interim period increased to ¥395 million (versus ¥144 million in the same period of the previous year). The net book value of buildings and structures rose to ¥1,931 million compared to the end of the previous fiscal year, reflecting continued investment in maintaining and upgrading factory facilities. Improvements to the production system aimed at raising the utilization rate are anticipated.
Last updated: July 17, 2026