Seikitokyu Kogyo Co., Ltd. · TSE:1898
Seikitokyu Kogyo — FY2025 Earnings Presentation
45 slides from Seikitokyu Kogyo's earnings presentation, Jun 1, 2026
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2026
Financial Results Presentation for the Fiscal Year Ended March 31, 2026 June 1, 2026 Becoming a truly strong corporate group
Slide 2: Contents
Contents Business Environment During FY2025 4 Financial Results (Consolidated and Non-consolidated) 5 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) 6 Overview of Financial Results Construction Work Orders Received (Non-consolidated) 7 1 Product Manufacturing an
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2026
Overview of Financial Results 1 for the Fiscal Year Ended March 31, 2026
Slide 4: Business Environment During FY2025
1 Business Environment During FY2025 The domestic economy showed a mild recovery, due to improvements in the employment and income environment. In the road construction market, public construction investment remained strong due to disaster prevention and mitigation projects as well as for building n
Slide 5: Financial Results (Consolidated and Non-consolidated)
1 Financial Results (Consolidated and Non-consolidated) Consolidated net sales decreased by 4.1% compared to the previous fiscal year. As for profit and loss, we achieved profit growth for the third consecutive year despite the impact of rising costs. Compared to the initial plan ([consolidated] net
Slide 6: Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated)
1 Orders Received, Net Sales and Construction Contracts Brought Forward (Consolidated) Although total orders received and construction orders received fell below the initial plan figures, they remained at the same level as the previous fiscal year. Net sales of finished goods increased for the fourt
Slide 7: Construction Work Orders Received (Non-consolidated)
1 Construction Work Orders Received (Non-consolidated) Construction orders for U.S. military-related construction remained strong, but orders for large-scale projects such as expressways were sluggish, leading to a 9.3% decrease in construction orders from the public sector. Construction orders from
Slide 8: Product Manufacturing and Sales Results (Non-consolidated)
1 Product Manufacturing and Sales Results (Non-consolidated) Although product demand continued to remain sluggish, production and sales volumes of asphalt composites were maintained at a level exceeding the results of the same period in the previous fiscal year. Net sales of finished goods increased
Slide 9: Net Sales and Profit (Loss) Results by Segment (Consolidated)
1 Net Sales and Profit (Loss) Results by Segment (Consolidated) In the construction business, compared to the previous fiscal year, in which net sales of completed construction contracts and profits increased substantially due to steady progress on multiple large-scale construction projects, both de
Slide 10: SG&A, Operating Profit, Ordinary Profit and Profit (Consolidated)
SG&A, Operating profit, Ordinary Profit and Profit 1 (Consolidated) Selling, general, and administrative expenses increased due to expanded investments in human resources (education and training, improved treatment for workers, etc.) and other factors. All strategic shareholdings (two issues) were s
Slide 11: Analysis of Factors Affecting Changes in Profit (Consolidated)
1 Analysis of Factors Affecting Changes in Profit (Consolidated) Although construction work profit decreased due to lower net sales of completed construction contracts, profit for the year increased by 779 million yen due to factors such as a significant improvement in product profit. Profit increas
Slide 12: Consolidated Financial Position and Cash Flows
1 Consolidated Financial Position and Cash Flows Dividends paid of 2,929 million yen. Purchase of property, plant and equipment of 1,808 million yen, including facility upgrade of plants and rebuilding offices. Refinancing was carried out for 5.0 billion yen in long-term borrowings upon maturity. Op
Slide 13: Major Construction Works We Received Orders for
1 Major Construction Works We Received Orders for Site Customer Project (Prefecture) East Nippon Expressway Pavement repair work within the jurisdiction of Fukushima of Fukushima Company Limited Tohoku Expressway (FY2026) East Nippon Expressway Pavement repair work within the jurisdiction of Utsunom
Slide 14: Major Completed Construction Works
1 Major Completed Construction Works Site Customer Project (Prefecture) East Nippon Expressway Pavement repair work on roads between Matsuo Hachimantai IC and Ashiro JCT Iwate Company Limited of Tohoku Expressway (FY2024) East Nippon Expressway Pavement work on Onahama Road in Yamada Fukushima Compa
Slide 15: TOPICS
1 TOPICS Recognition of Enterprises in the 2026 Outstanding Organizations of KENKO Investment for Health Program (Large Enterprise Category) (March 9, 2026) We have been selected as 2026 Outstanding Organizations of KENKO Investment for Health Program (Large Enterprise Category) by the Ministry of E
Slide 16: Outlook for the Fiscal Year Ending March 31, 2027
Outlook for the Fiscal Year 2 Ending March 31, 2027
Slide 17: Financial Results Forecast for FY2026 (Consolidated and Non-consolidated)
2 Financial Results Forecast for FY2026 (Consolidated and Non-consolidated) We continue to expect firm underlying demand in the road construction market, such as disaster prevention and disaster mitigation business and building national resilience. Consolidated net sales for the fiscal year ending M
Slide 18: Net Sales and Profit (Loss) Forecast by Segment (Consolidated)
2 Net Sales and Profit (Loss) Forecast by Segment (Consolidated) In the construction business, net sales of completed construction contracts are expected to exceed the previous fiscal year, backed by extensive construction works in progress and a solid order environment. In terms of profit, although
Slide 19: Forecast of Construction Work Orders to be Received (Non-consolidated)
2 Forecast of Construction Work Orders to be Received (Non-consolidated) We will continue to focus on strengthening the base of receiving construction orders from the private sector, taking into account medium- to long-term marketability amid an anticipated gradual downward trend in the amount of pu
Slide 20: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market (Management with an awareness of equity cost and share prices)
Slide 21: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market Analysis of current situation ROE had been on a downward trajectory following efforts to enhance equity but has been recovering from the bottom marked in FY2022, when earnings were sluggish, helped by controls on equity through active shareholder returns si
Slide 22: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market Medium-term Management Plan (FY2024-2026) /Where We Should Be in 2030 Achieve management aware of share price and cost of capital and Improve profitability Execute business strategy to ensure profitability (improve profit margins, capital efficiency) exceed
Slide 23: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market Initiatives to improve valuations for the fiscal year ended March 31, 2026 Improve ROE Fiscal year FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales (Millions of yen) 90,025 85,132 92,414 88,037 99,358 95,259 Profit (Millions of yen) 5,180 3,304 1,127 2,7
Slide 24: To Improve Valuation in the Stock Market
3 To Improve Valuation in the Stock Market Lower shareholders’ Initiatives to improve valuations for the fiscal year ended March 31, 2026 equity costs Initiatives for sustainability and resilience Promote initiatives based on materiality • Set non-financial KPIs and promote concrete initiatives alig
Slide 25: Reference: Medium-term Management Plan (FY2024-2026)
Reference: 4 Medium-term Management Plan (FY2024–2026) Becoming a truly strong corporate group 25
Slide 26: Phases on our way to achieving Where We Should Be in 2030
4 Phases on our way to achieving Where We Should Be in 2030 Previous material included (no change) Corporate Philosophy An infrastructure building company that helps Where We A truly strong corporate group create affluent communities Should that pursues personal and corporate growth in tandem and he
Slide 27: Medium-term Management Plan (FY2024-2026)
4 Medium-term Management Plan (FY2024-2026) Previous material Basic Policies included (no change) Becoming a truly strong corporate group 2nd Phase For achieving our vision (Where We Should Be in 2030), we are furthering initiatives under the five basic policies: “Expand stable earnings,” “Diversify
Slide 28: Medium-term Management Plan: Key Performance Indicators
4 Medium-term Management Plan (FY2024-2026) Previous material Key Performance Indicators Consolidated included (updated) ［連結］ FY2026 FY2026 plan Item FY2023 actual FY2024 actual FY2025 actual (announced in May 2024) (Forecast) Net sales 88.0 billion yen 99.3 billion yen 95.2 billion yen 102.7 billio
Slide 29: Individual Strategies: Expand stable earnings
4 Medium-term Management Plan (FY2024-2026) Previous material Individual Strategies included (no change) 01 Key Strategies Expand stable earnings by further strengthening the competitiveness of our core businesses Construction Business Build track record with construction and strengthen response c
Slide 30: Individual Strategies: Expand business areas and new fields
4 Medium-term Management Plan (FY2024-2026) Previous material Individual Strategies included (no change) 02 Key Strategies Rise to the challenge of expanding business areas and developing new business fields Provide new technology and value for social infrastructure development Lengthen the life o
Slide 31: Individual Strategies: Human resources cycle
4 Medium-term Management Plan (FY2024-2026) Previous material Individual Strategies included (updated) 03 Key Strategies Create a virtuous cycle in the recruitment, retention, and development of human resources Actively Promote Diversity & Inclusion and Improve Engagement Enhance recruiting throug
Slide 32: Individual Strategies: New ways of working and management base
4 Medium-term Management Plan (FY2024-2026) Previous material Individual Strategies included (no change) 04 Establish new ways of working that help Key Strategies improve productivity 05 Build a strong and sound management Key Strategies and financial base Improve Productivity and Operational Effici
Slide 33: Financial Capital Policy: Capital Allocation (initial plan)
4 Medium-term Management Plan (FY2024-2026) Previous material included Financial Capital Policy (no change/initial plan) Capital Allocation (FY2024-2026) • Implement continuous and strategic investments for building a sustainable business foundation • Control the balance sheet to reflect a balance b
Slide 34: Financial Capital Policy: Capital Allocation (current forecast)
4 Medium-term Management Plan (FY2024-2026) Material added this time Financial Capital Policy (current forecast) Capital Allocation (FY2024-2026) Operating Cash Flow Shareholder Returns (before R&D expense deductions) Dividends 8.5 billion yen Cumulative 3 years 18.5 billion yen Growth Investments I
Slide 35: Financial Capital Policy: Investments
4 Medium-term Management Plan (FY2024-2026) Previous material Financial Capital Policy included (updated) Implement continuous and strategic investments for building a sustainable business foundation (updated / current outlook) Three-year cumulative Three-year cumulative FY2024 result FY2025 result
Slide 36: Stable and proactive shareholder returns based on DOE
4 Medium-term Management Plan (FY2024-2026) Previous material Financial Capital Policy included (updated) Stable and proactive shareholder returns based on DOE ●Trends of relevant indicators Targeting DOE of 6% FY2026 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (Forecast) Equity (million yen) 40,790 4
Slide 37: Basic Policies to Achieve Where We Should Be
4 Where We Should Be in 2030 Previous material Basic Policies to Achieve Where We Should Be included (no change) Expand stable earnings Enhance management Diversify revenue and financial base sources Becoming a truly strong corporate group Establish new ways Execute people-centric of working managem
Slide 38: Where We Should Be in 2030 (Quantitative Targets)
4 Where We Should Be in 2030 Previous material Where We Should Be in 2030 (Quantitative Targets) included (no change) Updated on May 2024 Key Performance Indicators (KPI) Consolidated Our New Approach to Where We Original target Updated on Should Be (Quantitative Targets) (May 2021) May 2024 Net S
Slide 39: Cash Flow Allocation
4 Where We Should Be in 2030 Previous material Cash Flow Allocation Updated on May 2024 included (no change) ●Cash flow use (2024-2030) Operating cash flow (for 7 cumulative years) Growth Investments Approx. 23 billion yen (capital expenditure/strategic investment) (approx. 18 billion yen/approx. 5
Slide 40: Reference Information
5 Reference Information Becoming a truly strong corporate group 40
Slide 41: Corporate Philosophy / Company Profile
5 Corporate Philosophy / Company Profile Corporate Philosophy An infrastructure building company that helps create affluent communities Company name SEIKITOKYU KOGYO CO., LTD. Established January 16, 1950 Head office location 2-9-3, Shibakoen, Minato-ku, Tokyo, Representative Yoshikazu Taira, Direct
Slide 42: Main Offices, Laboratories, Consolidated Subsidiaries, etc.
5 Main Offices, Laboratories, Consolidated Subsidiaries, etc. Business offices, etc. 50 sites Material plants, etc. 49 sites Hokkaido ・Hokkaido Branch Technology research Tochigi Prefecture laboratory Testing laboratories 8 sites Equipment center Tochigi Prefecture Training center Tochigi Prefecture
Slide 43: Our Technologies
5 Our Technologies αFlat Mible-eco (generic term: foamed asphalt mixture) αFlat is a gap correction material for filling holes and repairing Asphalt and aggregate can be mixed easily with an additive to gaps that occur in bridge joints, and can be applied on asphalt foam fine bubbles in asphalt, whi
Slide 44: Consolidated Performance Indicators, etc.
5 Consolidated Performance Indicators, etc. Business term 61st 62nd 63rd 64th 65th 66th 67th 68th 69th 70th 71st 72nd 73rd 74th 75th 76th 77th Fiscal year FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales (Millions of yen
Slide 45: Forward-looking statements and contact
This material contains financial results forecasts, projections, and other forward-looking statements, which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors including changes in future business environment may caus