Oriental Shiraishi Cuts Profit Forecast After Costly Bridge Quality Failures

Oriental Shiraishi Corporation ( (JP:1786) ) has issued an announcement.

Oriental Shiraishi Corporation has disclosed that its subsidiary Japan Bridge Corporation must reconstruct and reinstall parts of the Hanshin Namba Line Yodogawa Bridge after discovering that outsourced fabricated components failed to meet required quality standards. The defects were traced to significant product nonconformity at Kanadevia Corporation’s Mukaishima Works, prompting Oriental Shiraishi to review its quality control and pursue damage claims against the fabricator.

The company expects total reconstruction and reinstallation costs of about ¥5 billion, of which approximately ¥1 billion will be recorded as losses, including provisions for loss on construction contracts and extraordinary losses tied to reinstallation. While net sales, operating profit and ordinary profit forecasts remain unchanged, profit attributable to owners of parent for the year ending March 31, 2026 has been cut by about 16.9%, underscoring the financial impact of the quality issues on shareholders and highlighting heightened execution and reputational risks in its bridge construction operations.

The most recent analyst rating on (JP:1786) stock is a Buy with a Yen439.00 price target. To see the full list of analyst forecasts on Oriental Shiraishi Corporation stock, see the JP:1786 Stock Forecast page.

More about Oriental Shiraishi Corporation

Oriental Shiraishi Corporation is a Japan-based construction company listed on the TSE Prime Market, specializing in infrastructure projects such as bridge works through subsidiaries including Japan Bridge Corporation. The group focuses on large-scale civil engineering for public and private clients, positioning itself as a key player in bridge fabrication and related structural construction in the Japanese market.

Average Trading Volume: 266,010

Technical Sentiment Signal: Buy

Current Market Cap: Yen51.8B

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