Here I will report the business results for this company’s 54th consolidated fiscal year(from July 1, 2025 to June 30, 2026).
General conditions in the current consolidated fiscal year
During the fiscal year under review, the Japanese economy continued to recover gradually due to the improvement in the job market and income environment, as well as steady capital investment by companies. On the other hand, the outlook remains uncertain due to factors including the impact of sustained price increases on consumer spending, as well as US trade policies and overseas economic trends, fluctuations in financial and capital markets, and rising geopolitical risks including the situation in the Middle East.
Operating under these conditions, the Group has been taking various measures based on the medium term business plan, Global Vision ∞“PART II”(FY2023-FY2026) announced in August 2023.
In regards to strengthening existing businesses, we have made systematic facility investments for the purpose of expanding R&D (research and development) and improving production in order to provide high value-added products and techniques. In regards to M&A, we worked to create early synergies by focusing on PMI of subsidiaries acquired in the previous fiscal year. In regards to expansion of global network, we actively developed initiatives to sell the Group’s products such as construction-related materials and forged automobile wheels in the global market.
With regard to operating results for the current fiscal year, the Industrial Infrastructure Business posted a decrease in sales due to a reactionary decline from large transactions in the previous period. However, the Social Infrastructure Business saw a significant increase in sales, driven by robust demand for civil engineering and construction materials related to public works against the backdrop of factors such as national resilience measures, as well as the full-year contribution from performance of the two companies consolidated in the previous fiscal year. As a result, net sales for fiscal year ended June 30, 2026 were ¥71,389 million (up 11.4% year on year), exceeding the previous fiscal year and setting a new record high. In terms of profits, operating profit was ¥12,033 million (up 0.1% year on year), ordinary profit was ¥12,892 million (up 5.2% year on year) due mainly to the recording of foreign exchange gains, and profit attributable to owners of the parent was ¥9,571 million (up 0.9% year on year), all of which were record highs.
Business Performance according to Segment
Social Infrastructure Business
In our main civil engineering materials business, public works investments related to national resilience measures, disaster mitigation, and disaster prevention remained strong, while embankment reinforcement materials, which are the Company’s main products, and marine-related materials performed strongly, in addition to other materials performing well overall. As a result, sales and profits exceeded the performance of the previous fiscal year. In non-woven fabric products business, sales of various automotive materials were strong, but sales of medical and health materials were sluggish, resulting in decreases in both sales and profits.
As for other businesses, while the marine products processing business was affected by a decline in unit sales prices of its main products, the agricultural supplies business achieved strong performance in harmful animal control products. As a result of such factors, sales and profits were in line with those of the previous fiscal year overall. Furthermore, the performances of the companies that became subsidiaries in the previous period progressed steadily and contributed to the increase in sales and profits of this segment.
Based on the factors described above, net sales of this business were ¥46,792 million (up 28.6% year on year), and operating profit was ¥8,855million (up 20.4% year on year).
Industrial Infrastructure Business
In the automobile wheel business, BBS Japan Co., Ltd. achieved strong domestic and overseas OEM sales, while domestic and overseas aftermarket sales progressed largely according to plan, resulting in sales and profits exceeding those of the previous fiscal year. With regard to wheel sales in Europe by BBS Japan’s German subsidiary BBS Motorsport GmbH, on the other hand, sales and profits fell below those of the previous fiscal year due to a decrease in sales and a corresponding decline in profit margins resulting from a reactionary decline from large transactions in the previous fiscal year.
With regard to apparel and various industrial materials, sales of main products such as wiping cloth products for precision equipment performed strongly, and both sales and profits exceeded the performance of the previous fiscal year.
Based on the factors described above, net sales of this business were ¥24,596 million (down 11.2% year on year), and operating profit was ¥4,704 million (down 21.7% year on year).
August 2026
