ENVALITH
応用地質株式会社 logo

OYO Corporation

9755・Prime Market・Services

Official website
応用地質株式会社 logo
OYO Corporation9755

Business

Oyo Corporation is a geological survey and consulting company founded in 1957. Domestically, it operates on two pillars: the Disaster Prevention/Infrastructure business (national resilience and aging infrastructure countermeasures) and the Environment/Energy business (renewable energy and environmental conservation). Overseas, through 26 consolidated subsidiaries and 4 affiliated companies, it provides measurement equipment and solutions in the fields of infrastructure maintenance, disaster prevention, and resource/energy. Its main customers are public-sector entities led by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT); in FY2025 (ending December 2025), sales to MLIT totaled ¥7,830 million (10.3% of net sales). Listed on the Tokyo Stock Exchange Prime Market.

Business Model

Domestically, the company provides order-based consulting services such as geological surveys, design, monitoring, and disaster prevention planning, with public works accounting for the majority of sales. Overseas, it also generates product-based revenue by manufacturing and selling measurement instruments such as seismographs, ground-penetrating radar, and magnetic survey equipment. Of net sales of ¥76,285 million for FY2025 (ending December 2025), the three segments are diversified as follows: Disaster Prevention & Infrastructure 39.3%, Environment & Energy 39.0%, and International 21.6%. The company invests ¥2,403 million in R&D expenses to maintain its technological advantage.

Company Strengths

Against the backdrop of the government's 'National Resilience Implementation Medium-Term Plan (2026–2030, total scale of over ¥20 trillion),' specialized technologies in geology, ground surveying, observation, monitoring, and disaster risk assessment translate directly into demand. Orders received for the Disaster Prevention/Infrastructure business in FY2025 (ending December 2025) showed strong growth, reaching ¥32,803 million (111.9% year-on-year).

The Environment/Energy business achieved net sales of ¥29,759 million, operating profit of ¥3,073 million, and an operating margin of 10.3% in FY2025 (ending December 2025). The company holds the top domestic market share in seabed ground survey technology for offshore wind power and also boasts the top domestic market share in disaster waste treatment planning services. It has become a highly profitable segment driving the group's overall earnings.

The ground information database accumulated over 67 years since the company's founding in 1957 is being developed into a 'Ground Information Data Platform.' Overseas, the group has 13 measuring instrument manufacturers and service companies in the United States, United Kingdom, France, Singapore, and elsewhere, and owns global brands such as KINEMETRICS (seismometers), GSSI (ground-penetrating radar), and GEOMETRICS (magnetic survey equipment).

ENVALITH's Perspective

Operating profit for Q1 FY2026 (ending December 2026) was ¥2,692 million (down 11.9% year-on-year), and net income attributable to owners of the parent was ¥1,929 million (down 19.7% year-on-year), representing a significant decline in earnings. The Q1 progress rate against the full-year operating profit forecast of ¥4,200 million stands at 64.1%, which appears high at first glance but is substantially below the same-quarter progress rate a year earlier (¥3,055 million ÷ ¥4,108 million = 74.4%), indicating a structure in which performance is increasingly weighted toward the second half. While the full-year forecast has been maintained, achieving it will require the environmental and energy business's detailed survey projects to gain momentum and losses in the international business to narrow, and progress should be monitored closely.

The international business posted an operating loss of ¥428 million in Q1 FY2026 (ending December 2026), widening from a loss of ¥234 million in the same period a year earlier. The main causes cited are delays in product shipment timing and schedule slippage in operations at the US subsidiary, compounded by external factors such as geopolitical risk and restrained disaster-prevention-related budget execution, suggesting demand recovery will take time. While order intake, at 135.7% year-on-year, shows signs of bottoming out, revenue remained at only 87.7% year-on-year, and a time lag before monetization is expected to continue.

Demand for disaster recovery work related to the Noto Peninsula earthquake, which was elevated in FY2025 (ending December 2025), has settled down, causing order intake in the disaster prevention and infrastructure business to decline to 91.5% year-on-year. At the same time, in the environmental and energy business, the schedule for detailed survey projects related to offshore wind power generation was pushed back, causing revenue to fall to 85.4% year-on-year. With these two factors—the falloff in special demand and project delays—occurring simultaneously, FY2026 (ending December 2026) is entering a plateau phase with both revenue and profit declining from the previous period. On the other hand, improvement in the gross profit margin of the disaster prevention and infrastructure business and an overall recovery in order intake (up 107.3% year-on-year) can be evaluated as positive factors over the medium to long term.

Growth Strategy

Leveraging tailwinds from national resilience and decarbonization policies, the company aims to deepen its three-segment strategy and achieve an ROE of 6% and an operating profit margin of 8%.

Improving gross profit margin through strengthening the functions of regional offices, optimizing staff allocation, and enhancing productivity. In Q1 of FY2026 (ending December 2026), operating profit reached ¥2,423 million (161.5% year-on-year), demonstrating the effects of these measures in concrete figures. The company will continue to capture medium- to long-term public works demand underpinned by the National Resilience Implementation Medium-Term Plan (2026–2030, totaling over ¥20 trillion).

Promoting order growth in offshore wind power generation (JOGMEC basic surveys), environmental restoration support, and decarbonization-related fields. Orders received in Q1 of FY2026 (ending December 2026) increased 110.5% year-on-year, and the focus going forward is on revenue conversion as detailed survey projects move into full-scale execution. Strengthening cost management for projects with front-loaded costs is also a challenge.

Working to recover order intake at overseas subsidiaries, mainly in the United States and Singapore. Orders received in Q1 of FY2026 (ending December 2026) rose 135.7% year-on-year, showing signs of bottoming out, but revenue remained at 87.7% of the prior-year level, and the operating loss widened to ¥428 million. Resolving timing gaps in product shipments and work progress, as well as addressing geopolitical risk, are urgent priorities.

The annual dividend forecast for FY2026 (ending December 2026) is ¥110 (¥55 at the second-quarter end and ¥55 at year-end), maintaining the same level as the previous fiscal year. Backed by a solid financial foundation with an equity ratio of 71.3% and cash and deposits of ¥23,634 million, the company plans to continue stable dividends even amid fluctuations in business performance.

Last updated: July 17, 2026