CONSEC CORPORATION

Develops core drills, wire saws, diamond wire, and other products in-house, manufacturing them at domestic plants and a Chinese subsidiary. A team of 12 R&D staff (3.3% of total employees) continues new product development, having developed five products including a dry wire sawing system in FY2026 (ending March 2026). Consumables sales trended steadily, and the drilling and cutting equipment business achieved net sales of ¥3,641 million, up 1.3% year on year.

The Company handles equipment manufacturing and materials sales, while domestic subsidiaries such as Sanin Kensetsu Service, Kensetsu Service Shimane, and Marukin Kensetsu handle specialized construction work, forming a vertically integrated structure. With the addition of Hokuto Denki Kogyo, Kido Bolt, and Darling Sangyo, the nine-subsidiary structure enables integrated production covering electrical work, fabrication, and painting as well. There is scope to expand the order-taking domain through collaboration within the group.

The equity ratio stood at 64.0% (66.3% in the previous period) at the end of FY2026 (ending March 2026), maintaining a high level. Against total assets of ¥12,367 million, net assets stood at ¥8,142 million. Cash and cash equivalents increased by ¥344 million year on year to ¥1,826 million. With ample cash on hand against total interest-bearing debt of ¥1,739 million, the Company has secured financial capacity for growth investment based on its medium-term management plan.

Viewing the expansion of the repair and maintenance construction market, centered on public works, as a growth opportunity, the company is promoting bundled orders for cutting and drilling ancillary works and strengthening proposal-based sales to main contractors by increasing construction sales personnel. In FY2026 (ending March 2026), segment profit improved significantly to ¥72 million (up 69.8% year on year), but net sales declined to ¥1,551 million (down 5.2% year on year), with sluggish orders for large-scale projects remaining a challenge.

The company continues to expand sales of Diamond Cutting Consumables while promoting the renewal of and launch of new versions of mainstay products such as core drills and Wire Saw Works. In FY2026 (ending March 2026), consumables sales trended favorably, and the segment achieved the only increase in both sales and profit, with segment net sales of ¥3,641 million (up 1.3% year on year) and segment profit of ¥215 million (up 3.7% year on year).

Aiming to become a "100-year company," the company is implementing investments toward human capital management and DX promotion. It is working to encourage employees to obtain construction management engineer qualifications and to strengthen its construction sales workforce. In FY2026 (ending March 2026), company-wide expenses increased to ¥504 million, reflecting an investment phase. The company is also concurrently advancing sustainability management to establish a sustainable management foundation.

In the Construction & Lifestyle-related Products Business, the company is focusing on proposal-based sales activities and securing large-scale orders, aiming to improve profitability through reductions in selling, general and administrative expenses. In FY2026 (ending March 2026), net sales declined to ¥3,746 million (down 2.4% year on year), but segment profit increased to ¥141 million (up 2.5% year on year), reflecting the effects of cost reductions. In the Factory Equipment-related Business, the recovery of orders from major customers remains a challenge.