CTI Engineering Co.,Ltd.
9621・Prime Market・Services
Business
Construction Technology Institute Co., Ltd. traces its origins to its founding in 1945 and is one of Japan's largest comprehensive construction consulting groups. It handles the planning, survey, design, construction supervision, and maintenance of public works across a broad range of fields including rivers, dams, roads, the environment, and information systems. The domestic business primarily serves national and local governments as clients, giving it a structure that directly benefits from disaster prevention/mitigation and national resilience policies. The overseas business consists of ODA-related consulting focused mainly on Southeast Asia (through CTI Engineering International Co., Ltd.) and the Building-Related Business (UK, Australia) conducted through Waterman Group Plc. With 25 consolidated subsidiaries, the group forms a global infrastructure solutions organization with revenue of ¥101,038 million.
Business Model
The main revenue source is service contracts commissioned by national and local governments, overseas government agencies, and similar entities. Revenue is recognized based on progress (percentage-of-completion method), with an order backlog of ¥72,231 million serving as a leading indicator of future sales. The domestic business accounts for roughly 69% of net sales and is highly profitable, with an operating margin of 12.3%. The overseas business accounts for roughly 31% of net sales but has a low operating margin of 1.8%. The company continuously invests in R&D (approximately 1.5% of net sales) to maintain technological competitiveness, reflecting a knowledge-intensive business model.
Company Strengths
In June 2025, the Cabinet approved the "First National Resilience Implementation Medium-Term Plan" (a five-year plan starting FY2026), securing medium-term public works budgets. Domestic orders received for FY2025 (ending December 2025) reached ¥72,411 million (up 10.2% year on year), with order backlog of ¥41,200 million (up 8.4% year on year), showing steady accumulation amid a continuing policy tailwind.
As of the end of FY2025 (ending December 2025), the equity ratio stood at 69.1%, well above the industry average. The company held net assets of ¥66,815 million and cash and cash equivalents of ¥15,093 million, and generally conducts business expansion, M&A, and capital expenditure within the scope of its own funds. Low reliance on interest-bearing debt underpins strong financial stability.
Since establishing a company-wide development expense system in 1977 that allocates 2% of net sales to R&D, the company has continued to invest more than ¥1 billion annually. R&D expenses for FY2025 (ending December 2025) totaled ¥1,505 million. Investments in cutting-edge technology areas such as AI, IoT, DX, basin-wide flood control, and environmental DNA analysis maintain the company's technological competitiveness.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥74,409 million in FY2021 to ¥101,038 million in FY2025. Operating profit, however, peaked at ¥10,011 million in FY2023 before declining for two consecutive years to ¥9,396 million in FY2024 and ¥9,136 million in FY2025, with net income also falling from ¥7,534 million in FY2023 to ¥5,952 million in FY2025. In Q1 of FY2026 (ending December 2026), however, supported by external tailwinds such as the expansion of the national resilience budget and an improving environment for public works orders, the company posted a clear recovery: revenue of ¥31,977 million (+6.2% YoY) and operating profit of ¥6,571 million (+12.1% YoY). Gross margin also improved to 36.7% (versus 35.1% in the same period a year earlier), confirming that profitability has bottomed out. Progress against the full-year forecast (revenue of ¥105,000 million, operating profit of ¥10,500 million) is on track, and FY2026 is expected to mark a turnaround to growth in both revenue and profit.
Growth Strategy
Aiming for net sales of ¥130,000 million in 2030 through business portfolio transformation and productivity improvement under the Medium-Term Management Plan 2027
Promoting the shift of management resources toward growth areas such as the Energy Business, Information Provision Services, and CM/PM Business. Aiming to increase added value and profitability in Domestic Construction Consulting; the domestic segment profit margin remained at a high level of 27.7% in Q1 FY2026 (ending December 2026).
Promoting improvement in engineer utilization efficiency and business process innovation through digital utilization. The improvement in gross profit margin to 36.7% in Q1 FY2026 (ending December 2026) (from 35.1% in the same period of the previous year) indicates that the effects of productivity improvement measures are partially materializing.
Promoting the strengthening of the earnings base of CTI Engineering International Co., Ltd. (Asia, Africa) and Waterman Group Plc (UK). The overseas segment turned profitable in Q1 FY2026 (ending December 2026) (profit of ¥45 million), but the profit margin remains at a low level of 0.5%, and continuous improvement remains a challenge.
Strengthening the securing, development, and retention of human resources, which are the source of competitiveness in knowledge-intensive businesses. Amid continued improvement in the employment and income environment, competition for hiring engineers is intensifying, making the strengthening of the human resource base through engagement improvement measures a prerequisite for medium- to long-term growth.
Last updated: July 17, 2026