Wakita & Co.,LTD.
8125・Prime Market・Wholesale Trade
Construction Machinery Business
Wakita's core business. Nationwide sales and rental of civil engineering and construction machinery, etc.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative first quarter) | ¥19,148 million | ¥18,706 million | ↑ |
| Segment profit (cumulative first quarter) | ¥880 million | ¥1,039 million | ↓ |
| Segment sales (full year, prior year actual) | ¥76,838 million | — | — |
| Segment assets (end of prior fiscal year) | ¥65,167 million | — | — |
| Rental revenue, etc. (cumulative first quarter) | ¥8,693 million | ¥8,253 million | ↑ |
| Sales revenue, etc. (cumulative first quarter) | ¥10,447 million | ¥10,450 million | — |
Business Details
The core segment of the Wakita Group, engaged in the sales and rental of civil engineering and construction machinery, material handling equipment, and related products. In addition to the parent company, subsidiaries such as Chiba Lease Kogyo Co., Ltd. and Toko Nissan Co., Ltd. handle operations. With a customer base spanning both public investment (national resilience and disaster prevention measures) and private investment, the segment pursues growth strategies centered on expanding rental demand, including expansion of the store network, promotion of Construction DX, and new entry into the temporary equipment (kasetsu) industry. It is the most important segment, accounting for approximately 78% of consolidated net sales.
Recent Overview
Segment sales increased on strong rental performance, but segment profit declined 15.2% due to continued upfront investment
In the first quarter of FY2027 (ending February 2027) (March to May 2026), the Construction Machinery Business posted sales of ¥19,148 million (up 2.4% year on year) and segment profit of ¥880 million (down 15.2% year on year). The rental division achieved increases in both sales and profit through optimization of rental unit prices and improved utilization rates, while the sales division saw declines in sales and profit due to reduced customer purchasing appetite amid rising construction machinery prices. Continued upfront investment—including high-level investment in rental assets, expansion of the store network, and personnel investment—along with IT infrastructure development and increased hiring at certain group companies, weighed on segment profit. Note that from this fiscal year, shareholder benefit program expenses have been reclassified as company-wide expenses, changing the method of measuring segment profit.
Key Products
Growth Drivers
- Steady trend in public investment (national resilience, disaster prevention, and aging infrastructure renewal policies)
- Continued expansion of rental demand driven by a recovery in private investment
- Improved asset efficiency through optimization of rental unit prices and higher utilization rates
- Steady expansion of equipment maintenance device sales for the temporary equipment (kasetsu) industry (new market development)
- Boost to utilization rates and sales from expansion of the store network (including through M&A)
- Expansion of solution revenue through promotion of Construction DX (ICT One-Stop Service and i-Construction 2.0 compatibility)
Risks
- Decline in customer purchasing appetite due to rising construction machinery prices (impact on the sales division)
- Rising rental asset procurement costs due to persistently high construction machinery purchase prices
- Risk of overall construction industry work volume constraints due to worsening shortages of skilled construction workers and stricter overtime regulations
- Continued downward pressure on profit from upfront investment expenses, including high-level rental asset investment, new store openings, and increased hiring
- Short-term increase in expenses from upfront investment such as IT infrastructure development and increased hiring at certain group companies
- Impairment risk related to M&A goodwill (unamortized balance of ¥8,492 million)
Last updated: May 25, 2026