Sho-Bond backlog declines as orders fall short of sales
The company expects earthquake-strengthening orders from Nexco East Japan to recover.
Sho-Bond Holdings Co., Ltd. (TSE-1414) ended the fiscal year on June 30, 2026, with an order backlog of 72,498 million yen, down 11.3% from a year earlier because orders received were lower than sales.
Sho-Bond's order intake fell 2.7% to 80,004 million yen as orders from local authorities and expressway companies declined from a year earlier.
Sho-Bond increased orders from the national government by focusing on winning centrally awarded construction work amid low ordering volumes from expressway companies.
Sho-Bond's revenue declined 1.7% to 89,204 million yen as construction sales from national-government and expressway-company projects were weak.
Sho-Bond increased construction-material sales through higher sales of materials used for earthquake strengthening and coupling materials.
Sho-Bond's domestic construction business recorded orders of 75,647 million yen, a decline of 3.3% from the previous fiscal year.
Sho-Bond's domestic construction business recorded segment profit of 19,675 million yen, down 0.8% from the previous fiscal year.
Sho-Bond's consolidated operating profit rose 0.2% from the previous fiscal year to 20,831 million yen in the year ended June 30, 2026.
Sho-Bond's net profit attributable to shareholders of the parent company increased 2.5% from the previous fiscal year to 15,439 million yen.
Sho-Bond ended the fiscal year with cash and cash equivalents of 37,247 million yen, an increase of 4,723 million yen from the previous year-end.
Sho-Bond generated a cash inflow of 19,330 million yen from operating activities during the fiscal year ended June 30, 2026.
Sho-Bond recorded a cash outflow of 14,874 million yen from financing activities during the fiscal year ended June 30, 2026.
Sharp increases in construction-material prices or labor rates, or shortages of skilled workers, could affect Sho-Bond's results through higher project costs that reduce profitability or through construction delays.
Sho-Bond sought to limit the effect of cost changes on construction profitability by monitoring material prices and labor costs, procuring supplies early, and securing dependable suppliers.
Conditions for winning orders in Japan's infrastructure-maintenance market are expected to remain firm over the medium to long term, based on developments in public policy.
Sho-Bond has begun work on considering its next medium-term management plan.
Sho-Bond aims to achieve sustained profit growth and stable shareholder returns by using internal resources it has strengthened to respond to changes in domestic and overseas infrastructure-maintenance markets and the management environment for listed companies, including attention to capital costs and share prices.
Sho-Bond expects a recovery in earthquake-strengthening construction orders from Nexco East Japan, whose ordering volumes were low during the year, and plans to pursue an order-winning strategy that serves the company as a whole to build its backlog at the end of the next fiscal year.