KONDOTEC INC.
7438・Prime Market・Wholesale Trade
Industrial Materials
Kondotec's largest segment, centered on manufacturing and purchase & sales of Civil Engineering & Construction Materials and related products.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) | ¥39,536 million | ¥37,328 million | ↑ |
| Segment profit | ¥2,726 million | ¥2,454 million | ↑ |
| Segment profit margin | 6.9% | 6.6% | ↑ |
| Segment assets | ¥29,630 million | ¥25,763 million | ↑ |
Business Details
The core segment of Kondotec, centered on hardware retail, engaged in the manufacturing and purchase & sales of Civil Engineering & Construction Materials, Machinery & Equipment, etc. Orders from major demand sources remained solid, and the company advanced the pass-through of rising manufacturing costs and purchase prices to selling prices, while sales from Suzuto Corporation and Ryukyu Bridge Co., Ltd., which became subsidiaries in November 2025, also contributed. The profit margin improved through expanded sales of high value-added products and sales activities focused on gross profit margin. This is the largest segment, accounting for approximately 47% of consolidated net sales.
Recent Overview
Net sales rose to ¥39,536 million (up 5.9% YoY) on the contribution of Suzuto and Ryukyu Bridge, with profit up 11.1%.
In FY2026 (ending March 2026), although sales volume decreased due to an overall slowdown in construction demand, orders from major demand sources remained solid, and the pass-through of rising manufacturing costs and purchase prices to selling prices progressed. In addition, sales from Suzuto Corporation, which became a subsidiary in November 2025, and Ryukyu Bridge Co., Ltd., which became a subsidiary in December 2025, contributed, resulting in net sales of ¥39,536 million (up 5.9% year on year). Through expanded sales of high value-added products and sales activities focused on gross profit margin, segment profit increased to ¥2,726 million (up 11.1% year on year). On the other hand, increases in selling, general and administrative expenses and rent and personnel expenses associated with the subsidiarization of Suzuto and Ryukyu Bridge were a burden on the cost side.
Key Products
Growth Drivers
- Increase in major orders and rise in selling prices due to solid trends in urban redevelopment construction and public investment
- Improvement in profit margin through expanded sales of high value-added products and sales activities focused on gross profit margin
- Expansion of group sales capacity and net sales through the subsidiarization of Suzuto Corporation (November 2025) and Ryukyu Bridge Co., Ltd. (December 2025)
- Continued promotion of organic growth strategies, including development of new sales destinations and reactivation of dormant customers
- Differentiated supply leveraging manufacturer function through products from 6 domestic factories and OEM products
Risks
- Risk of decreased sales volume due to an overall slowdown in construction demand
- Pressure on profit margin from increases in selling, general and administrative expenses such as personnel expenses, rent, and freight
- Risk of rising procurement costs due to elevated materials and energy prices
- Risk of widening demand disparities across construction sectors, including sluggish housing investment
- Risk of goodwill amortization and integration costs arising from M&A-related subsidiarization
Last updated: June 23, 2026