| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥3587.0B | ¥3304.7B | +8.5% |
| 営業利益 | ¥242.0B | ¥206.2B | +17.3% |
| 経常利益 | ¥246.0B | ¥200.7B | +22.6% |
| 純利益 | ¥181.6B | ¥135.5B | +34.0% |
| ROE | 15.4% | 12.6% | - |
For the fiscal year ending March 2026, Revenue was ¥3586.97B (YoY +¥282.23B +8.5%), Operating Income was ¥241.99B (YoY +¥35.77B +17.3%), Ordinary Income was ¥246.00B (YoY +¥45.27B +22.6%), and Net Income attributable to owners of parent was ¥181.56B (YoY +¥46.02B +34.0%). Gross profit on completed construction expanded from ¥373.02B to ¥418.64B, improving gross margin from 9.7% to 11.1% (+140bp). Strong revenue growth in Overseas Business (+40.5%) and stable profitability in Domestic Civil Engineering drove results, lifting Operating Margin from 6.2% to 6.7% (+51bp). Non-operating items included foreign exchange gains of ¥6.02B and dividend income of ¥4.82B, boosting Ordinary Income; extraordinary gains included gains on sale of investment securities of ¥14.02B. Versus the full-year guidance (Revenue ¥3600B / Operating Income ¥211B / Ordinary Income ¥208B / Net Income ¥140B), Operating Income achieved 114.7% and Net Income 129.7%, a substantial beat. ROE remained high at 15.4%, and Operating Cash Flow of ¥480.06B—2.6x Net Income—highlights strong cash generation.
[Revenue] Revenue was ¥3586.97B (YoY +8.5%). By segment, Domestic Civil Engineering was ¥1560.01B (+10.6%), accounting for 43.5% of consolidated revenue and showing steady performance as the core business. Domestic Building decreased to ¥944.50B (-14.5%), but Overseas Business grew substantially to ¥923.37B (+40.5%), driving consolidated growth. Other segments (real estate, machinery manufacturing, etc.) were ¥272.78B (+22.0%). Revenue from completed construction was ¥3368.59B (YoY +8.1%), and revenue from development businesses, etc. was ¥57.37B. Geographically, the overseas proportion rose significantly with accelerated contract wins and construction progress overseas.
[Profitability] Gross profit on completed construction expanded from ¥373.02B to ¥418.64B (+12.2%), and the gross profit margin on completed construction improved from 9.7% to 11.1% (+140bp). Gross profit from development businesses, etc. was ¥13.62B, with a gross profit margin of 23.7%. Gross profit totaled ¥418.64B (gross margin 11.7%), up 19.6% YoY. SG&A was ¥176.65B (+23.1%), but expanded gross profit led to Operating Income of ¥241.99B (+17.3%), and Operating Margin improved to 6.7% (from 6.2% prior year). Non-operating income included interest income ¥1.36B, dividend income ¥4.82B, and foreign exchange gains ¥6.02B; interest expense was ¥6.28B and foreign exchange losses ¥2.99B. Non-operating income totaled ¥13.04B against non-operating expenses of ¥9.02B, resulting in Ordinary Income of ¥246.00B (+22.6%). Extraordinary gains totaled ¥14.29B (gains on sale of investment securities ¥14.02B, gains on sale of fixed assets ¥0.27B); extraordinary losses totaled ¥3.53B (impairment losses ¥1.88B, loss on retirement of fixed assets ¥1.24B). Profit before income taxes was ¥256.76B; after deducting income taxes of ¥62.37B (effective tax rate 24.3%) and minority interests of ¥0.77B, Net Income attributable to owners of parent was ¥181.56B (+34.0%). In conclusion, higher revenue and profit were driven by overseas high growth and improved gross margins.
Domestic Civil Engineering posted Revenue of ¥1560.01B (YoY +10.6%), Operating Income of ¥137.17B (+4.0%), and an Operating Margin of 8.8%. As the core segment representing 56.7% of consolidated Operating Income, it maintained solid profitability due to stable order environment and favorable project mix. Domestic Building revenue declined to ¥944.50B (-14.5%), but Operating Income rose to ¥81.69B (+27.2%), with Operating Margin improving to 8.6% (from 5.8% prior year) — reflecting improved project selection and stronger cost control. Overseas Business achieved Revenue ¥923.37B (+40.5%), Operating Income ¥75.27B (+77.9%), and Operating Margin 8.2% (from 6.4% prior year). Profitability improved markedly with scale expansion, positioning it as a future growth driver. Other (real estate, machinery manufacturing, etc.) recorded Revenue ¥272.78B (+22.0%), Operating Income ¥16.43B (-22.3%), and Operating Margin 6.0%, indicating relatively lower profitability. Consolidated Operating Income after intersegment adjustments was ¥241.99B.
[Profitability] Operating Margin 6.7% (prior 6.2% +0.5pt) and Net Margin 5.1% (prior 4.1% +1.0pt) improved. Gross profit on completed construction rose from 9.7% to 11.1% (+140bp), supported by better margins on overseas projects and stable profitability in Domestic Civil Engineering. ROE at 15.4% is high relative to historical performance. [Cash Quality] Operating Cash Flow ¥480.06B is 2.6x Net Income, and Operating Cash Flow/EBITDA ratio is 1.76x, indicating very strong cash backing for earnings. Accrual ratio is -9.4%, reflecting a cash-driven earnings profile. [Investment Efficiency] Total Asset Turnover was 1.17x (prior 1.11x), indicating improved asset efficiency. EPS ¥248.40 (prior ¥187.94 +32.2%), BPS ¥1507.27. ROA (on Ordinary Income basis) 8.1% (prior 6.7%). [Financial Soundness] Equity Ratio 38.6% (prior 35.6%), Debt/EBITDA 0.74x, Interest Coverage 38.5x, reflecting a conservative financial structure. Interest-bearing debt was ¥201.35B while cash was ¥493.80B, effectively net cash. Current Ratio 144.5%, indicating healthy short-term liquidity.
Operating Cash Flow was ¥480.06B (significant improvement from ¥-142.55B prior year). Profit before income taxes ¥256.76B was adjusted for depreciation ¥30.13B and increases in provision for construction losses ¥56.78B, with working capital changes contributing—collection of trade receivables ¥146.80B and increase in trade payables ¥38.38B—then deducting corporate tax payments of ¥67.71B. Investing Cash Flow was ¥-15.42B: capital expenditures of ¥28.76B and intangible asset investments of ¥8.40B were partially offset by proceeds from sale of investment securities ¥24.04B. Free Cash Flow was a robust ¥464.64B. Financing Cash Flow was ¥-391.22B, including net decrease in short-term borrowings ¥193.42B, repayment of long-term borrowings ¥41.40B, dividends ¥92.48B, and share buybacks ¥69.20B. Cash and cash equivalents increased from ¥415.83B to ¥492.31B (+¥76.48B), and year-end cash was ¥493.80B. Operating CF/Net Income 2.6x and OCF/EBITDA 1.76x indicate strong cash conversion of earnings.
Recurring earnings are supported by expansion in gross profit on completed construction (¥373.02B → ¥418.64B) and non-operating income such as dividend income ¥4.82B, interest income ¥1.36B, and foreign exchange gains ¥6.02B. One-off factors included extraordinary gains of ¥14.29B (mainly gains on sale of investment securities ¥14.02B), which boosted Net Income. Non-operating income ¥13.04B represents 0.36% of Revenue, below 5%, indicating low dependence on non-core income. The gap from Ordinary Income ¥246.00B to Net Income ¥181.56B is mainly due to income taxes ¥62.37B, with net extraordinary items contributing +¥10.76B partially offsetting. Accrual quality is strong: Operating CF ¥480.06B / Net Income ¥181.56B = 2.6x and accrual ratio -9.4%. Depreciation ¥30.13B yields an EBITDA margin of 7.6%, underpinning cash-generating ability. Contract retention receivables (completed construction accounts receivable) decreased to ¥1577.82B (from ¥1724.87B), suggesting collection progress. Comprehensive income was ¥233.11B, exceeding Net Income ¥181.56B; other comprehensive income items included foreign currency translation adjustments ¥-0.05B, unrealized gains on securities ¥12.06B, deferred hedges ¥1.24B, and retirement benefit adjustments ¥25.87B.
Against full-year guidance (Revenue ¥3600B / Operating Income ¥211B / Ordinary Income ¥208B / Net Income attributable to owners of parent ¥140B / EPS ¥187.54), actual results were Revenue ¥3586.97B (progress 99.6%), Operating Income ¥241.99B (114.7%), Ordinary Income ¥246.00B (118.3%), and Net Income ¥181.56B (129.7%), representing a significant beat. Upside factors included better-than-expected gross margin on completed construction (gross margin +140bp), improved profitability and order growth in Overseas Business, foreign exchange gains ¥6.02B in non-operating income, and extraordinary gains ¥14.29B (gains on sale of investment securities). The company’s plan was conservatively set; on a realized basis, cost control and strong overseas performance substantially exceeded the plan.
Annual dividend per share is ¥100 (interim ¥38 + year-end ¥62), comprised of ordinary dividend ¥77 and special dividend ¥23. Total dividends amounted to ¥62.51B (including ¥3.85B held in trust accounts). Payout Ratio is 40.4% (based on EPS ¥248.40), maintaining parity with past practice. Share buybacks of ¥69.20B were executed, resulting in total shareholder return of ¥131.71B and a Total Return Ratio of 53.0%. Against FCF ¥464.64B, dividends plus share buybacks represent 28.3% coverage, indicating shareholder returns at sustainable levels. With cash ¥493.80B and strong operating cash generation, the company is evaluated as able to continue stable dividends and opportunistic share repurchases.
Construction cost overrun risk: Provision for construction losses is ¥88.92B (from ¥32.14B prior year, +176.7%), a substantial increase. Rising construction difficulty on large projects and higher material and labor costs increase the risk of profitability deterioration on individual projects. Although gross profit on completed construction is improving, the elevated provision level suggests potential volatility in earnings.
Risks from Overseas Business expansion: The Overseas segment recorded Revenue ¥923.37B (+40.5%) and Operating Income ¥75.27B (+77.9%), growing rapidly. With scale expansion, regulatory compliance, construction management, foreign exchange volatility, and geopolitical risks increase in complexity. The foreign exchange gains of ¥6.02B are a one-off factor and could reverse in a yen-strengthening environment.
Short-term debt refinancing risk: Short-term debt ratio is 49.9% (short-term liabilities ¥1666.28B / total liabilities ¥1875.09B), indicating a maturity mismatch. Short-term borrowings of ¥100.50B declined significantly from ¥295.10B prior year, but short-term liabilities such as electronically recorded obligations ¥135.26B and advance receipts ¥171.91B remain sizable. With cash ¥493.80B and Operating CF ¥480.06B, liquidity is ample, but rollover risk in deteriorating market conditions should be monitored.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 6.7% | 5.5% (3.5%–7.2%) | +1.2pt |
| 純利益率 | 5.1% | 3.5% (2.5%–4.4%) | +1.5pt |
Profitability exceeds the industry median, supported by improved gross profit on completed construction and higher margins in Overseas Business.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 8.5% | 9.8% (-2.1%–15.1%) | -1.3pt |
Revenue growth is slightly below the industry median, but high growth in Overseas Business (+40.5%) is expected to be a future driver.
※Source: Company compilation
Improved gross margins and accelerated Overseas Business growth: Gross profit on completed construction improved from 9.7% to 11.1% (+140bp), and the Overseas segment saw Revenue +40.5% and Operating Income +77.9%, expanding both scale and profitability. Stable margins in Domestic Civil Engineering together with high overseas growth drove Operating Margin from 6.2% to 6.7% (+51bp). Going forward, the quality and margin sustainability of overseas projects will be focal points.
Strong cash generation and active capital policy: Operating Cash Flow ¥480.06B is 2.6x Net Income, and OCF/EBITDA is 1.76x, indicating very strong cash backing. With FCF ¥464.64B, the company implemented dividends ¥62.51B and share buybacks ¥69.20B (Total Return Ratio 53.0%), strengthening shareholder returns. Treasury stock increased from -¥75.41B to -¥165.15B, clarifying a stance to improve capital efficiency.
Elevated provision for construction losses and profitability management: Provision for construction losses ¥88.92B (from ¥32.14B prior year, +176.7%) indicates risk of cost overruns on specific projects. While gross margins are improving, project difficulty and rising material and labor costs may increase earnings volatility. Rigorous cost control and disciplined order selection are key to stable growth going forward.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from publicly disclosed financial statements. Investment decisions are your own responsibility; consult a professional advisor as necessary.