TANAKEN Inc.
1450・Standard Market・Construction
Business
TANAKEN Corporation (formerly Tanaka Construction Industry Co., Ltd.) is a demolition-work specialist company founded in 1982. Centered on the demolition of building structures, it provides a one-stop range of demolition-related work, including civil engineering, earth retaining work, foundation demolition, pile removal, removal of hazardous contaminants such as asbestos, PCBs, and dioxins, and soil improvement. Actual construction work is carried out by partner companies, while the company adopts a general contractor model under which it undertakes construction management, safety management, liaison with neighboring residents, and dealings with administrative authorities on an integrated basis. Its main customers are diverse, comprising developers (42.4% of net sales), redevelopment projects and others (24.4%), and end users (23.6%), and it has a track record of transactions with major real estate companies such as Mitsui Fudosan. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The Company does not perform in-house construction; it acts as a general contractor and construction management company that undertakes site surveys, construction method proposals, design, construction planning, subcontractor arrangement, construction management, safety management, cost management, and administrative liaison on a comprehensive basis. Advocating a "virtuous sales cycle originating from consultation," it secures repeat orders by making proposals from the customer's initial consultation stage onward. While minimizing capital expenditure, it secures construction capability by guiding and supervising partner companies (TANAKEN Safety Cooperative Association), resulting in a structure in which larger projects can be expected to contribute proportionally higher profitability.
Company Strengths
Orders received in FY2026 (ending March 2026) reached a record high of ¥18,591,770 million (up 39.0% year on year). The order backlog to be carried forward to the next period stood at ¥11,931 million (up 46.2% year on year), securing an ample order backlog that underpins the forecast for FY2027 (ending March 2027) sales of ¥16,000 million (up 8.0% year on year).
Through a prime contractor model specializing in construction management, the operating margin for FY2026 (ending March 2026) reached 14.7%. Net assets continued to increase, reaching ¥9,325 million (up ¥1,102 million year on year), and the financial base remains solid, backed by ¥14,000 million in credit lines from financial institutions. The company has also clearly stated a shareholder return policy targeting a dividend payout ratio of 30% or higher.
The company holds ISO9001, ISO14001, and ISO45001 certifications, as well as a Minister of Land, Infrastructure, Transport and Tourism license (specified construction business). Since its founding in 1982, it has accumulated over 40 years of construction management expertise, and following its name change to "TANAKEN" in April 2025, it has been promoting brand value enhancement. Increased orders for highly complex large-scale projects underscore its competitiveness.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive periods, from ¥9,824 million in FY2022 (ended March 2022) to ¥14,820 million in FY2026 (ending March 2026) (CAGR of approximately 10.8%). However, on the profit side, after recording a record-high operating profit of ¥2,328 million in FY2025 (ended March 2025), the company turned to a profit decline in FY2026 (ending March 2026), with operating profit of ¥2,185 million (down 6.1%) and net income of ¥1,502 million (down 4.7%). Amid continued cost pressure from rising construction material prices and tight supply-demand conditions for skilled labor, a sharp increase in provision for directors' retirement benefits (up ¥23,851 thousand year-on-year) and upfront costs for strengthening personnel and construction systems weighed on profits. The forecast for FY2027 (ending March 2027) also anticipates operating profit of ¥2,100 million (down 3.9%), indicating a second consecutive year of profit decline, and the shift into a phase of revenue growth accompanied by profit decline has become clear. Meanwhile, the order environment remains solid, supported by an increasing number of aging buildings, urban redevelopment, and expanding data center demand, and the backlog of ¥11,931 million at period-end ensures high visibility for next-period revenue.
Growth Strategy
Under the "Vision NEXT 10" Secondary Phase, the company aims to strengthen human resources and construction capabilities while achieving net sales of ¥16.0 billion
Building on the foundation established during the Primary Phase (FY2023–FY2025), the Secondary Phase advances further foundation-strengthening and enhancement of construction execution capability as part of a "3-year growth strategy plan." As the first year of this phase, FY2027 (ending March 2027) will see expanded recruitment activities, enhanced training programs, establishment of on-site support systems, and expansion of partner company alliances, aiming to enhance the value of the TANAKEN brand.
The company is accelerating the securing and development of construction management engineers through enhanced recruitment activities and expanded training programs. Building on improved working conditions resulting from the company name change and head office relocation, the company is focusing on expanding its human resources, which are the source of its competitiveness. In FY2026 (ending March 2026), salaries and allowances within SG&A expenses increased to ¥238,636 thousand (versus ¥230,304 thousand in the previous fiscal year), reflecting ongoing investment in personnel costs.
The company is strengthening and expanding its network of partner companies, which underpins the core of its general contractor construction management model, in order to enhance its capability to handle large-scale and highly complex projects. In FY2026 (ending March 2026), trade payables (construction accounts payable) increased from ¥1,530 million to ¥1,945 million, confirming an expansion in the scale of transactions with partner companies.
Against a backdrop of growing demand for urban redevelopment, condominium reconstruction, logistics warehouses, and data centers, the company is actively pursuing orders for highly complex, large-scale projects. Through enhanced recognition of the TANAKEN brand and accumulated track record, the company aims to strengthen its order base among major clients such as developers. The order backlog stood at ¥11,931 million at the end of FY2026 (ending March 2026).
Last updated: July 19, 2026