Research

Original Engineering Consultants: Water consultant expanding into IT through acquisitions

ORIGINAL ENGINEERING CONSULTANTS CO., LTD. (4642) · Published 2026-11-04 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • The company is a construction consultant founded in 1962. It provides surveys, planning, detailed design and construction supervision for water supply and sewerage systems, plus municipal facility information management, GIS and disaster-prevention work.
  • Almost all revenue comes from public-sector clients, mainly local governments and related bodies. The Japan Sewage Works Agency is named as the single largest customer, and the company states that it has a sales network covering all prefectures from Hokkaido to Kyushu and Okinawa.
  • After acquiring Crux System, a Osaka-based software and IT engineering firm, in January 2025, the company split reporting into two segments: Construction Consulting and Information Processing Services. Nihon Gijutsu Service, a Kobe-based water consultant acquired in July 2025, sits in Construction Consulting. The group had 498 employees at December 31, 2025.
  • The fiscal year ends December 31. The year to December 2025 was the first year of consolidated statements, so the annual report gives no prior-year comparisons (see Performance & Balance).

Investment case

  1. The annual securities report for the year to December 2025 states that the order backlog was the highest in the past five fiscal years. It also says water-supply orders, previously a small part of the business, increased.
  2. The company links demand to aging water and sewer networks built mostly in the 1970s, slow pipe-renewal rates, earthquake-resistance requirements and sewer inspection reviews after the January 2025 road collapse in Yashio, Saitama. It also cites its work on Noto Peninsula earthquake recovery, including detailed design for pipeline restoration in Suzu.
  3. The balance sheet at June 30, 2026 shows cash and deposits well above total borrowings, even after the debt-funded acquisitions of 2025 (see Performance & Balance). The interim release attributes the cash increase to collection of fees and says long-term borrowings are being repaid.
  4. The interim earnings release for the year to December 2026 forecasts a higher year-end dividend than for the prior year. It also shows a provision for a shareholder benefit program, and the articles allow share buybacks and interim dividends by board resolution.

Bear case

  1. Profits depend on central and local government budgets, subsidies and transfers. The company names this concentration on public works as its first business risk.
  2. The Information Processing Services segment carries most of the acquisition goodwill and customer-related assets but earned a small profit in the year to December 2025. It reported a segment loss in the first half of the year to December 2026, even though its revenue rose.
  3. Earnings are seasonal because deliveries concentrate around the government fiscal year-end in March. First-half operating profit for the year to December 2026 already exceeded the full-year operating profit forecast, which was left unchanged at August 3, 2026, implying the company expects weaker second-half results.
  4. The interim release recorded a litigation-related loss for damages paid to a former full-time audit and supervisory board member. The release gives no further detail on the dispute.

Catalysts

  • In July 2026 the company acquired all shares of Active Fusions, a developer and operator of internet solutions, which it plans to place in the Information Processing Services segment. Watch the effect on second-half results and on goodwill.
  • Results for the year to December 2026 will show whether the company keeps or revises the full-year forecast first published on February 10, 2026, and whether it pays the forecast year-end dividend.
  • The company states that group working groups are developing new business plans, including Web GIS tools using the national 3D city model program, PLATEAU, and platforms for resident participation in infrastructure maintenance.

Key risks

  • Defects in deliverables: the company handles several hundred public projects a year and may need to perform repairs if design documents contain errors. It also warns that errors from generative AI use could cause serious system errors or defective deliverables.
  • Staffing: the company says a shrinking working-age population makes hiring engineers harder each year, and that falling short of hiring and training plans could weaken production capacity.
  • Natural disasters and accidents could restrict operations; the company maintains a business continuity plan and backs up data between servers in Tokyo and Osaka.
  • The board has five directors, one of them an outside director. The articles reduce the quorum for director elections and special resolutions to shareholders holding one-third of voting rights. The largest shareholders include Tokyo Specs, two entities named UH Partners 2 and UH Partners 3, and HIKARI TSUSHIN,INC. (see Shareholders).

Trading liquidity

Median daily trading value US$0.03mn
Average daily volume 5,012 shares

2025-10-15 to 2026-11-02 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • Consolidated statements begin with the year to December 2025, and the accounting for the Crux System acquisition was finalized in the third quarter of 2025. First-half 2025 figures in the interim release were restated, which limits multi-year comparisons.
  • The annual securities report was filed in March 2026 and the interim earnings release in August 2026. The Active Fusions acquisition and the litigation loss appear only in the later document.
  • Qualitative statements are taken from the annual securities report for the year to December 2025 and the interim (second-quarter) earnings release for the year to December 2026.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Not investment advice. This material is general and impersonal. It does not take into account the investment objectives, financial situation or particular needs of any reader, and it is not tailored to any person. It is published to all readers on the same terms and on a regular basis, and no reader receives advice on the merits of any security for their own account. Readers should make their own independent decisions and consult their own legal, tax, accounting and investment advisers before making any investment.

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Currency. Amounts shown in US$ are converted from Japanese yen at a mid-market rate for convenience only. They are not the amounts an investor would receive, and changes in exchange rates may cause the value of a yen-denominated investment to fall in US$ terms even if its value in yen does not.

Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Services

ORIGINAL ENGINEERING CONSULTANTS CO.,LTD.

Original Engineering Consultants (OEC) is a construction consulting firm specializing in water and sewage infrastructure, providing services across the full project lifecycle including surveys, planning, detailed design, and construction supervision. The company also operates an information processing division focused on urban facility information management and software development. Its subsidiary VISTAQUA (formerly Urushu Co.) supports GIS, disaster prevention, and software development/maintenance services.

Market Cap
US$50.9M
¥8.13B
EV
US$26.0M
¥4.15B
StockUS$8.47(¥1,353)▲+0.00%
US$1 = ¥159.70 (2026-11-12)
LTM EV/EBITDA
3.0
x
LTM EV/EBIT
3.7
x
LTM PER
13.0
x
LTM PBR
1.0
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-28.6%pt
100
Nov 13, 25 – Nov 13, 26StockTOPIX
MC → EV Bridge
US$50.9M¥8.13BMarket CapUS$13.6M¥2.17B+ DebtUS$31.7M¥5.06B− CashUS$6.84M¥1.09B− Inv. Sec.US$26.0M¥4.15BEV
AI Briefing
Generating insights…
Performance & Balance
Revenue 5Y (US$)
US$38.9M¥6.21B'21/12US$40.6M¥6.49B'22/12US$41.5M¥6.63B'23/12US$44.6M¥7.12B'24/12US$53.3M¥8.52B'25/12
EBITDA 5Y (US$)
US$4.30M¥0.69B'21/12US$5.31M¥0.85B'22/12US$5.63M¥0.90B'23/12US$5.94M¥0.95B'24/12US$7.23M¥1.15B'25/12
Net Income 5Y (US$)
US$2.35M¥0.38B'21/12US$2.60M¥0.42B'22/12US$2.99M¥0.48B'23/12US$4.07M¥0.65B'24/12US$3.39M¥0.54B'25/12
Capital Structure
79%
21%
EquityD/E 0.26xDebt
Liquidity vs Debt 5Y (US$)▲ Net Cash
CashInv. Sec.Debt
US$23.9M¥3.81BUS$0.70M¥0.11B'21/12US$26.6M¥4.24BUS$0.53M¥0.08B'22/12US$27.7M¥4.42BUS$0.36M¥0.06B'23/12US$28.9M¥4.62BUS$0.19M¥0.03B'24/12US$30.6M¥4.89BUS$11.5M¥1.84B'25/12
Business Segments
2025/12 · US$ (¥B)
88%
Construction consultant
Revenue
US$47.0M(¥7.51B)
Segment profit
US$6.45M(¥1.03B)13.7%
12%
Information processing service business
Revenue
US$6.44M(¥1.03B)
Segment profit
US$0.11M(¥0.02B)1.7%
Adjustments
Revenue
-US$0.12M(¥-0.02B)
Segment profit
-US$0.79M(¥-0.13B)
Shareholders
Top 10 hold 65.8%
1
Tokyo Specs Co., Ltd.
33.66%
2
UHPartners2 Co., Ltd.
9.08%
3
HIKARI TSUSHIN,INC.
7.42%
4
Yoshiko OZEKI
4.11%
5
UHPartners3 Co., Ltd.
2.53%
6
Toshifumi TAKASHIMA
2.42%
7
CACEIS BK ES IICS CLIENTS (Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch)
2.40%
8
Masatoshi IMAI
1.56%
9
SIL Co., Ltd.
1.43%
10
Sumitomo Life Insurance Company
1.16%
Management
8 officers
Nobuhiko SUGA
Representative Director, President
Apr 1990 Joined Yamaichi Securities Co., Ltd. Apr 1992 Joined the Company Jan 2010 Deputy Manager, Planning Department, Business Strategy Headquarters Nov 2012 Representative Director, President (current)
1967-09-29
Osamu MAKISE
Director, Executive Officer, General Manager of Technology
Apr 1992 Joined the Company Jan 2010 General Manager, Facilities Department 2, Tokyo Branch Jan 2012 Manager, Akita Office Nov 2012 Director, Executive Officer, Manager, Akita Office Jan 2013 Director, Executive Officer, General Manager, Facilities Department, Tokyo Branch Apr 2013 Director, Executive Officer, General Manager, Facilities Headquarters Apr 2022 Director, Executive Officer, General Manager, Facilities & Infrastructure Headquarters, concurrently Head of Research & Consulting Center Apr 2023 Director, Executive Officer, in charge of Technology, concurrently Head of Research & Consulting Center Apr 2024 Director, Executive Officer, General Manager of Technology (current)
1966-02-08
Tatsuya OHIGASHI
Director, Executive Officer, Western Japan Branch Manager
Apr 1984 Joined Kidou Kensetsu Kogyo Co., Ltd. Oct 1991 Joined Yugen Kaisha TTM Jul 2002 Joined Nikken Gijutsu Consultant Co., Ltd. Jan 2012 Joined the Company Apr 2015 Manager, Osaka Office Apr 2017 Deputy Branch Manager, Kansai Branch Oct 2020 General Manager, Western Japan Sales Department Apr 2021 Executive Officer, General Manager, Western Japan Sales Department Mar 2022 Director, Executive Officer, Western Japan Branch Manager, concurrently General Manager, Western Japan Sales Department Jan 2025 Director, Crux System Co., Ltd. (current) Apr 2025 Director, Executive Officer, Western Japan Branch Manager (current) Jul 2025 Representative Director, President, Nihon Gijutsu Service Co., Ltd. (current)
1961-01-16
Hiroyuki INOUE
Director, Executive Officer, General Manager, Western Japan Facilities Department
Apr 1996 Joined the Company Jan 2012 Section Manager, Technical Section 4, Facilities Department Apr 2020 General Manager, Western Japan Facilities Department Apr 2024 Executive Officer, General Manager, Western Japan Facilities Department Mar 2026 Director, Executive Officer, General Manager, Western Japan Facilities Department (current)
1973-12-25
Katsuhiro KAMIFU
Director
Apr 1981 Joined Yasuda Trust & Banking Co., Ltd. (now Mizuho Trust & Banking Co., Ltd.) Jul 1994 Manager, Sales Section 1, Tokyo Branch, Mizuho Trust & Banking Co., Ltd. Jun 1999 Deputy Branch Manager, Nagoya Branch, and General Manager, Personal Sales Department, Mizuho Trust & Banking Co., Ltd. Jun 2005 Branch Manager, Hamamatsu Branch, Mizuho Trust & Banking Co., Ltd. Apr 2009 General Manager, Head Office Sales Department 4, Mizuho Trust & Banking Co., Ltd. Apr 2011 Joined Mizuho Trust Business Operations Co., Ltd. as Managing Director Apr 2013 Joined Heisei Building Co., Ltd. as Managing Executive Officer Nov 2020 Joined Morimoto Quality Co., Ltd. as General Manager, Sales (current) Mar 2022 Director of the Company (current)
1958-10-11
Shu NAGAI
Full-time Audit & Supervisory Board Member
May 1989 Joined the Company Jan 2004 Deputy Manager, Technical Department, Tokyo Branch Jan 2007 Executive Officer, General Manager, Technology Headquarters Nov 2012 Representative Director, Executive Vice President, Executive Officer, General Manager, Design Department, Tokyo Branch Apr 2017 Representative Director, Executive Vice President, Executive Officer, General Manager, Business Management Apr 2022 Executive Officer, Executive Advisor Jul 2023 Full-time Audit & Supervisory Board Member (current)
1954-05-27
Yoshiaki OKADA
Audit & Supervisory Board Member
Apr 1975 Joined Niigata City Hall Apr 2011 Manager, Sewerage Planning Division, Sewerage Department, Niigata City Hall Apr 2015 General Manager, Sewerage Department, Niigata City Hall Sep 2017 Joined Rex Co., Ltd. as Executive Officer, General Manager, Technology Department, Niigata Branch Mar 2019 Audit & Supervisory Board Member of the Company (current) Feb 2023 Director, Executive Vice President, Executive Officer, Rex Co., Ltd. Feb 2025 Senior Advisor, Rex Co., Ltd. (current)
1956-10-06
Koki MIYAHARA
Audit & Supervisory Board Member
Aug 1984 Joined Shizuoka City Hall, Sewerage Department, Waterworks Bureau Apr 1995 City Planning Department, Urban Bureau, Shizuoka City Apr 2005 Road Department, Construction Bureau, Shizuoka City Apr 2018 Deputy Director-General, Urban Bureau, and General Manager, City Planning Department, Shizuoka City Apr 2019 Director-General, Urban Bureau, Shizuoka City Mar 2023 Audit & Supervisory Board Member of the Company (current)
1961-06-11
Large Shareholding Reports
UH Partners 2 Co., Ltd.
2026-09-29
7.38%→7.38%
Annual report (as of 2026-06-30): 9.08%
UH Partners 2 Co., Ltd.
2026-09-08
7.38%→7.38%
Annual report (as of 2026-06-30): 9.08%
UH Partners 2 Co., Ltd.
2025-07-30
7.01%→7.38%
Annual report (as of 2026-06-30): 9.08%
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-11-05
Q3 Earnings Flash
FY ending Dec 2026
EDINET
2026-09-29
Large Shareholding Report
EDINET
2026-09-08
Large Shareholding Report
EDINET
2026-08-05
Semi-Annual Securities Report
Period: Jan 2026 – Dec 2026
TDnet
2026-08-03
Q2 Earnings Flash
FY ending Dec 2026
TDnet
2026-05-08
Q1 Earnings Flash
FY ending Dec 2026
EDINET
2026-03-26
Annual Securities Report
Period: Jan 2025 – Dec 2025
TDnet
2026-03-04
株主総会招集通知
TDnet
2026-02-10
Full-Year Earnings Flash
FY ending Dec 2025
TDnet
2025-11-05
Q3 Earnings Flash
FY ending Dec 2025
EDINET
2025-08-06
Semi-Annual Securities Report
Period: Jan 2025 – Jun 2025
EDINET
2025-07-30
Large Shareholding Report
TDnet
2025-05-09
Q1 Earnings Flash
FY ending Dec 2025
EDINET
2025-03-26
Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-08-07
Semi-Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-05-10
Quarterly Securities Report
Period: Jan 2024 – Mar 2024
EDINET
2024-03-26
Annual Securities Report
Period: Jan 2023 – Dec 2023
EDINET
2023-11-10
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-10
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-05-12
Quarterly Securities Report
Period: Jan 2023 – Mar 2023
EDINET
2023-03-28
Annual Securities Report
Period: Jan 2022 – Dec 2022
EDINET
2022-11-11
Quarterly Securities Report
EDINET
2022-08-04
Quarterly Securities Report
EDINET
2022-05-13
Quarterly Securities Report
EDINET
2022-03-29
Annual Securities Report
EDINET
2021-11-08
Quarterly Securities Report
EDINET
2021-08-05
Quarterly Securities Report
EDINET
2021-05-10
Quarterly Securities Report
EDINET
2021-03-26
Annual Securities Report
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