| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥319.8B | ¥301.1B | +6.2% |
| Operating Income / Operating Profit | ¥65.7B | ¥58.6B | +12.1% |
| Ordinary Income | ¥66.2B | ¥58.4B | +13.3% |
| Net Income / Net Profit | ¥44.7B | ¥38.9B | +14.9% |
| ROE | 6.5% | 5.8% | - |
The Q1 results for the fiscal year ending March 2026 delivered Revenue / Net Sales of ¥319.8B (YoY +¥18.7B +6.2%), Operating Income of ¥65.7B (YoY +¥7.1B +12.1%), Ordinary Income of ¥66.2B (YoY +¥7.8B +13.3%), and Net Income of ¥44.7B (YoY +¥5.8B +14.9%), achieving near-double-digit growth across profit lines. Profit growth outpacing revenue growth was driven by an improvement in gross margin (36.7%, YoY +1.6pt), led by progress in high-margin projects within the domestic construction consulting business. Operating margin improved to 20.5% (YoY +1.1pt) and net margin to 14.0% (YoY +1.0pt), improving profitability; EPS was ¥163.05 (YoY +16.3%), a substantial improvement in earnings per share. Progress toward the full year plan (Revenue ¥1,050B, Operating Income ¥105B) is 30.5% for Revenue and 62.6% for Operating Income, indicating front-loaded performance in the first half and suggesting upside risk to full-year guidance.
【Revenue / Net Sales】Revenue / Net Sales of ¥319.8B (YoY +6.2%) consists of Domestic Construction Consulting Business ¥235.6B (+4.0%) and Overseas Construction Consulting Business ¥84.3B (+12.7%). The domestic business, accounting for 73.6% of revenue mix, remains the core and maintained stable growth. Overseas achieved double-digit growth and lifted consolidated revenue, but its scale remains about 36% of domestic. Gross margin was 36.7%, improving by +1.6pt YoY, reflecting successful containment of cost of sales. Contract liabilities increased to ¥45.0B (prior ¥41.7B), and the rise in backlog with advance-payment characteristics contributes to stabilization of the revenue base.
【Profit & Loss】From Gross Profit of ¥117.4B (gross margin 36.7%), SG&A of ¥51.6B (SG&A ratio 16.2%, YoY +0.5pt) was deducted, resulting in Operating Income of ¥65.7B (Operating margin 20.5%). SG&A increased by ¥4.5B YoY (+9.5%), outpacing revenue growth, but the increase in gross profit (+¥11.6B +11.0%) absorbed this, producing operating leverage. Non-operating income included dividend income ¥0.9B and interest income ¥0.3B, offsetting non-operating expenses ¥1.1B including interest expense ¥0.6B, yielding net +¥0.5B. Ordinary Income grew to ¥66.2B (YoY +13.3%), outpacing operating income. Extraordinary items were Extraordinary Income ¥0.0B (including gains on sales of investment securities ¥1.6B) and Extraordinary Loss ¥0.7B (impairment loss ¥0.6B, valuation loss on investment securities ¥1.6B), netting -¥0.7B and immaterial; Pre-tax income was ¥65.4B, corporate taxes ¥20.7B (effective tax rate 31.6%), resulting in Net Income / Net Profit of ¥44.7B (YoY +14.9%). After deducting Net Income attributable to non-controlling interests ¥0.1B, Net Income attributable to owners of the parent was ¥44.6B. In conclusion, the company achieved revenue and profit growth, and the structure in which profitability improvement drives profit growth has become clear.
The Domestic Construction Consulting Business recorded Revenue ¥235.6B (YoY +4.0%) and Operating Income ¥65.3B (YoY +10.8%), maintaining a very high operating margin of 27.7%. Profit growth significantly exceeded revenue growth, suggesting higher project unit prices and a shift toward high-margin projects. The Overseas Construction Consulting Business achieved Revenue ¥84.3B (YoY +12.7%) and Operating Income ¥0.5B (YoY +255.2%); although profitability expanded into positive territory, the operating margin remains thin at 0.5%. Overseas is in a revenue expansion phase, but margin improvement remains incomplete, and high domestic profitability continues to drive consolidated profits.
【Profitability】Operating margin of 20.5% improved by +1.1pt YoY, and net margin of 14.0% also rose by +1.0pt YoY. ROE is 6.5%; DuPont decomposition yields net margin 14.0%, total asset turnover 0.30x, and financial leverage 1.57x. Gross margin 36.7% improved by +1.6pt YoY, with the domestic business’s high profitability (segment margin 27.7%) lifting consolidated profitability. 【Cash Quality】Interest coverage is 106.0x (Operating Income ¥65.7B / interest expense ¥0.6B), indicating very low interest burden. The buildup of contract liabilities to ¥45.0B contributes to revenue stability as an advance-payment element. 【Investment Efficiency】Total asset turnover 0.30x is standard for construction consulting; fixed asset turnover 2.30x (Revenue ¥319.8B / fixed assets ¥139.2B) reflects an asset-light model. 【Financial Soundness】Equity Ratio 63.7% (prior 69.1% YoY -5.4pt), current ratio 229.3%, quick ratio 229.3% indicate ample liquidity. Cash and deposits ¥165.9B cover short-term borrowings ¥73.8B by 2.25x, ensuring sufficient short-term repayment capacity. However, short-term borrowings surged from ¥13.8B in the prior year (+¥60.0B +434.8%), and the concentration of maturities is a point to watch. Debt/Equity ratio 10.8% shows low reliance on interest-bearing debt and high financial flexibility.
Cash flow statement data is not disclosed, but funding trends are analyzed from balance sheet movements. Cash and deposits rose slightly to ¥165.9B (prior ¥159.9B, +¥6.0B). Short-term borrowings increased significantly to ¥73.8B (prior ¥13.8B, +¥60.0B), suggesting temporary working capital demand or timing of refinancing. Bonus reserves fell to ¥17.8B (prior ¥30.4B, -¥12.6B), reflecting seasonal mid-year payments. Contract liabilities increased to ¥45.0B (prior ¥41.7B, +¥3.3B), indicating continued inflow of advance-like funds. Retained earnings rose to ¥555.8B (prior ¥531.9B, +¥23.9B), with just over half of Net Income ¥44.6B retained internally, advancing capital accumulation in the absence of dividend payments. Treasury stock is -¥23.4B (prior -¥14.8B, -¥8.6B increase), indicating ongoing share repurchases and intent to improve capital efficiency. Overall, profit generation is supporting operating cash, and the rise in short-term borrowings is interpreted as a temporary factor related to seasonal working capital management.
Of Ordinary Income ¥66.2B, non-operating income was limited to ¥1.5B (0.5% of sales), indicating most profit is from core business. Non-operating income consists of dividend income ¥0.9B and interest income ¥0.3B, stable financial income with low transience. Extraordinary items netted -¥0.7B (gains on sales of investment securities ¥1.6B, impairment loss ¥0.6B, valuation loss on investment securities ¥1.6B) and were small in scale, not materially distorting Ordinary Income. The difference between Ordinary Income ¥66.2B and Pre-tax income ¥65.4B is -¥0.8B, minimal; extraordinary items have limited impact on ordinary profit. Comprehensive income ¥44.7B is almost identical to Net Income ¥44.7B, with Other Comprehensive Income ¥0.0B (foreign currency translation adjustments ¥0.2B, valuation difference on available-for-sale securities ¥1.8B, adjustments related to retirement benefits -¥2.0B) having limited effect. On accruals, the increase in contract liabilities strengthens the advance structure and contributes to stability of revenue and cash, while the decrease in bonus reserves reflects seasonal mid-year payments and is not detrimental to earnings quality. Overall, recurring earnings constitute a high proportion and earnings quality is good.
The full year plan anticipates Revenue / Net Sales ¥1,050B (YoY +3.9%), Operating Income ¥105B (YoY +14.9%), Ordinary Income ¥105B (YoY +12.3%), and Net Income ¥70B (EPS ¥256.05). Q1 progress rates versus full year are Revenue 30.5% (standard 25% +5.5pt), Operating Income 62.6% (standard +37.6pt), and Ordinary Income 63.1% (standard +38.1pt), showing strong front-loading. Progress rates for Operating Income and Ordinary Income exceeding 60% suggest either front-loaded project realization in H1 or conservatism in planning. No revisions to guidance have been made as of Q1, but even when considering cost seasonality and smoothing of project timing in H2, there is significant upside potential to the full year. Dividend forecast remains ¥0 and no change in distribution policy has been indicated.
The dividend forecast for the period is ¥0, and no dividend payment is planned. Treasury share acquisitions are in progress (Treasury stock -¥23.4B, YoY -¥8.6B increase), aiming to improve capital efficiency and boost EPS. With Net Income ¥44.6B, year-end net assets ¥680.2B, and cash and deposits ¥165.9B, sufficient dividend resources exist, but the company is currently prioritizing internal reserves and share repurchases as capital policy. Total Return Ratio is indeterminable (dividend ¥0), and future expansion of shareholder returns will depend on profit growth and changes in capital allocation policy.
Concentration risk in the domestic business: Domestic Construction Consulting accounts for 73.6% of revenue mix, making the company sensitive to domestic public investment trends and policy changes. Sudden changes in order environment or postponement of orders could directly impact performance.
Low profitability in overseas business: Although overseas revenue grew to ¥84.3B (+12.7%), operating margin remains thin at 0.5%, and project profitability deterioration or exchange rate movements could compress profits. If margin improvement lags amid revenue expansion, it could weigh on consolidated profitability.
Maturity concentration of short-term borrowings: Short-term borrowings surged to ¥73.8B (YoY +434.8%) and short-term liabilities ratio is 99.1%, indicating concentrated maturities. Refinancing risk or increased funding costs in a rising interest rate environment could pressure liquidity and financial expenses. Cash/short-term debt ratio is 2.25x, providing a liquidity buffer, but precision in maturity management is required.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Income / Operating Profit margin | 20.5% | 6.2% (4.2%–17.2%) | +14.3pt |
| Net Income / Net Profit margin | 14.0% | 2.8% (0.6%–11.9%) | +11.2pt |
The company’s operating margin 20.5% and net margin 14.0% both substantially exceed industry medians, highlighting its superior profitability within the IT & Communications sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue / Net Sales growth rate (YoY) | 6.2% | 20.9% (12.5%–25.8%) | -14.8pt |
Revenue growth rate of 6.2% is well below the industry median of 20.9%, indicating a conservative growth pace relative to peers.
※Source: Company aggregation
High profitability in the Domestic Construction Consulting Business (Operating margin 27.7%) is driving consolidated profitability, with Operating margin 20.5% and Net margin 14.0% maintaining top-tier levels in the industry. Gross margin improved by +1.6pt YoY, and continued improvement in project mix quality and cost control effectiveness is evident. Q1 Operating Income progress of 62.6% significantly leads the full-year plan, and even accounting for front-loaded project realization, there is substantial upside potential to full-year figures.
Short-term borrowings surged by +¥60.0B YoY, revealing maturity concentration with a short-term liabilities ratio of 99.1%. Cash and deposits of ¥165.9B (2.25x short-term borrowings) provide a robust liquidity buffer and interest coverage of 106.0x indicates strong resilience to interest burden; nonetheless, attention is required on roll management of borrowings and potential increases in funding costs in a rising rate environment. Ongoing treasury share acquisitions (-¥8.6B) indicate intent to improve capital efficiency, preserving flexibility in shareholder returns in the absence of dividends.
Overseas business achieved double-digit revenue growth of ¥84.3B (+12.7%) but maintains a thin operating margin of 0.5%, with margin improvement still in progress. With overseas revenue representing 26.4% of total, margin improvement overseas could be the next driver of consolidated profit growth. Balancing high domestic profitability and overseas growth is expected to support sustainable improvement in consolidated profitability.
This report is an AI-generated earnings analysis document automatically produced from XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by our firm using publicly disclosed financial statements. Investment decisions are your responsibility; please consult a professional advisor as necessary before making investment decisions.