MIDAC HOLDINGS CO., LTD.

Business Details

An integrated in-house facility-based waste treatment business covering everything from intermediate treatment of sludge and waste liquids (coagulation-sedimentation, incineration, etc.) to final landfill disposal at controlled and stable-type landfills. Customers include industrial waste generators and local governments. Waste acceptance volume is expanding against a backdrop of robust landfill demand. As the flagship segment accounting for approximately 81% of the Group's total revenue, it has an extremely high-profit structure with a segment profit margin exceeding 55%. Ohira Kosan Co., Ltd. (a controlled landfill operator in Chiba Prefecture), which became a subsidiary in April 2025, was consolidated from the second quarter onward.

Recent Overview

Revenue increased 12.4% and profit increased 7.5%, driven by the consolidation of Ohira Kosan and the completion of capacity expansion at multiple landfills.

In FY2026 (ending March 2026), the Waste Disposal Business achieved revenue of ¥9,609 million (up 12.4% year on year) and segment profit of ¥5,321 million (up 7.5% year on year), representing increased revenue and profit. Waste acceptance volume increased at the Okuyama no Mori Clean Center against a backdrop of robust landfill demand, and landfill capacity expansion was completed and put into service at the Enshu Clean Center and Hamanako Clean Center. Ohira Kosan Co., Ltd., which became a subsidiary in April 2025, was consolidated from the second quarter onward and resumed waste intake in November 2025. Following the acquisition of Ohira Kosan, segment assets increased by ¥9,480 million from the end of the previous fiscal year to ¥18,384 million. The profit margin declined from 57.9% in the previous fiscal year to 55.4%, due to fixed cost burdens during Ohira Kosan's intake restriction period, among other factors.

Key Products

Growth Drivers

• Increased waste acceptance volume through the acquisition of new large-scale projects centered on the "Okuyama no Mori Clean Center" controlled landfill and expanded transaction volume with existing clients
• Expanded processing capacity following completion of landfill capacity expansion at the Enshu Clean Center and Hamanako Clean Center
• Business expansion into the East Japan area through the consolidation of Ohira Kosan Co., Ltd. (a controlled landfill operator in Chiba Prefecture), which became a subsidiary in April 2025, and full-scale operations following the resumption of waste intake in November 2025
• Improved stable-type landfill share within Shizuoka Prefecture through the Group's addition of Enoken Kogyo Co., Ltd. (a stable-type landfill operator in Shizuoka Prefecture), which became a subsidiary in April 2026
• Increased acceptance of large-scale projects against a backdrop of robust landfill demand centered on the construction industry
• Improved utilization rate of intermediate treatment facilities, centered on the new water treatment facility "Miyakoda Techno Plant"
• Continued growth investment in landfills and intermediate treatment facilities through both in-house development and active M&A

Risks

• There is a physical upper limit to landfill capacity, and obtaining permits for new landfills takes a long time, making securing processing capacity a challenge
• Amendments to or tightening of environmental regulations such as the Waste Management Act may affect the estimated amount of the reserve for landfill maintenance and management (¥4,412 million at the end of FY2026 (ending March 2026), an increase of ¥3,473 million from the end of the previous fiscal year) and operating costs
• Risk that the final asset valuation amount related to goodwill from the purchase price allocation for Ohira Kosan Co., Ltd. (¥2,677 million in the Waste Disposal segment at the end of FY2026 (ending March 2026)) may fluctuate
• In the event of contaminant leakage due to natural disasters or human error, there is a risk of a significant impact on the estimated amount of the reserve for landfill maintenance and management
• Risk of increased goodwill amortization burden (¥337 million in the Waste Disposal segment in FY2026 (ending March 2026)) and integration costs due to the expansion of the scope of consolidation through M&A
• Risk that prolonged intake restrictions accompanying the capacity expansion work at Ohira Kosan Co., Ltd.'s third landfill may delay revenue contribution commensurate with the acquisition cost