CTI Engineering Co.,Ltd.

Business Details

Provides comprehensive consulting services—planning, surveys, design, procurement support, construction management, and operation/maintenance—for public and private projects in rivers, dams, roads, environment, information, and other fields. Main clients are national and local governments. In addition to the parent company, subsidiaries such as Koken Consultants (Hiroken Consultants), Nihon Toshi Gijutsu, Chiken Sogo Consultant, Nissoken, and Kankyo Sogo Research each cover specialized areas. This is the Group's revenue base, accounting for approximately 74% of consolidated net sales.

Recent Overview

In Q1 FY2026, the domestic segment posted higher sales and profit year on year

In Q1 FY2026 (ending December 2026), net sales to external customers in the Domestic Construction Consulting business were ¥23,545 million (versus ¥22,640 million in the same period of the prior year, up 4.0% year on year), and segment profit was ¥6,527 million (versus ¥5,889 million in the same period of the prior year, up 10.8%), resulting in higher sales and profit. In the national government's FY2026 budget for public works-related expenses, the budget for disaster prevention/mitigation and national resilience exceeds the prior year, and the order environment is favorable against the backdrop of the "1st National Resilience Implementation Medium-Term Plan" (approved by the Cabinet in June 2025, covering 5 years with a budget of just over ¥20 trillion). Group-wide order intake also remained solid, rising 8.9% year on year to ¥26,156 million.

Key Products

Growth Drivers

• Improvement in the medium-term public works order environment due to the "1st National Resilience Implementation Medium-Term Plan" (approved by the Cabinet in June 2025, covering 5 years from FY2026 with a budget of just over ¥20 trillion)
• Year-on-year increase in the budget for disaster prevention/mitigation and national resilience within the national government's FY2026 public works-related expenses
• Continued expansion of demand for climate-change-related disaster prevention/mitigation measures and countermeasures for aging infrastructure such as rivers and roads
• Diversification of the customer base through increased orders from local governments
• Expansion of orders in growth areas including the Energy Business, Information Provision Services, and CM/PM Business
• Expansion of business scale through the consolidation of Hiroken Consultants Co., Ltd.

Risks

• Risk of declining profit margin due to unmet plans at some subsidiaries (FY2025 full-year operating margin of 12.3%)
• An impairment loss of ¥432 million was recorded in the Domestic Construction Consulting segment in FY2025
• Risk of fluctuations in the public works budget (deterioration of the order environment due to cuts in the disaster prevention/mitigation budget or policy changes)
• Uncertainty in estimated total costs under construction consulting service contracts (revenue recognition based on percentage of completion)
• Risk of rising cost ratios due to engineer shortages and rising labor costs
• Risk that changes in the external environment, such as US trade policy and the situation in the Middle East, spill over into domestic public investment policy