Subaru Enterprise Co., Ltd.
9632・Standard Market・Services
Road-Related Business
The core segment of the Subaru Kogyo Group, centered on maintenance management, cleaning, and civil engineering works for expressways and public roads.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative first quarter) | ¥7,335 million | ¥7,283 million | ↑ |
| Segment profit (cumulative first quarter) | ¥1,543 million | ¥1,798 million | ↓ |
| Segment profit margin (cumulative first quarter) | 21.0% | 24.7% | ↓ |
| Net sales (full year, from existing report) | ¥28,056 million | — | — |
| Segment profit (full year, from existing report) | ¥5,086 million | — | — |
Business Details
Engaged in road maintenance and cleaning, maintenance and repair works, contracted operation of expressway facilities, and solar power generation business. With expressway operators (Hanshin Expressway Engineering, Central Nippon Highway Maintenance Tomei, etc.) and government agencies as major customers, the segment is founded on annual-contract road maintenance and management services and cleaning services, and also receives orders for one-off works such as bridge repairs. As the core segment accounting for approximately 92% of consolidated net sales, it operates nationwide in cooperation with more than 10 subsidiaries, including Nagoya Road Service Co., Ltd., Tohai Clean Co., Ltd., and Tess Tohoku Co., Ltd.
Recent Overview
Net sales increased, but segment profit fell 14.2% year on year due to the drop-off of the price escalation portion recorded in the prior-year period, among other factors.
In the first quarter of FY2027 (ending January 2027) (February to April 2026), the Road-Related Business recorded net sales of ¥7,335 million (up 0.7% year on year), a modest increase. Road civil engineering works saw increased revenue driven by the smooth progress of large-scale bridge repair works, and road maintenance and management services also increased on the back of proactive sales activities. On the other hand, road cleaning services saw decreased revenue due to a decline in snow/ice countermeasure work. Segment profit declined significantly to ¥1,543 million (down 14.2% year on year), mainly due to the drop-off of the price escalation portion recorded in the same period of the prior year. Rising labor costs and material/equipment prices also continued to pressure the business environment.
Key Products
Growth Drivers
- Acquisition of new projects in annual-contract road maintenance and management services through proactive sales activities
- Continued demand for aging infrastructure countermeasures, including large-scale bridge repair works
- Solid trend in public investment driven by government promotion of disaster prevention, mitigation, and national land resilience measures
- Strengthened response to comprehensive evaluation bidding methods in general competitive bidding (improved cost estimation accuracy and establishment of stable construction systems)
- Earnings contribution from solar power generation equipment installation works and maintenance through Tess Tohoku Co., Ltd. and others
Risks
- Risk of declining profit margin due to the drop-off of the price escalation portion recorded in the same period of the prior year, among other factors
- Constraints on construction systems and rising labor costs due to chronic shortage of skilled construction workers
- Deterioration in construction profitability due to rising labor costs and material/equipment prices
- Fluctuations in earnings in road cleaning services due to dependence on weather conditions for snow/ice countermeasure work, among other factors
- Intensifying competition for orders and risk of decreased orders for large-scale road civil engineering projects
- Increased costs of complying with the Construction Industry "Work Style Reform-Related Act" (overtime work upper limit regulations)
Last updated: April 27, 2026