MIKIKOGYO CO.,LTD.
1718・Standard Market・Construction
Construction Business
Core segment of the comprehensive construction business, encompassing building construction, civil engineering, and gas works
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (segment external customers, cumulative Q1 FY2026 (ending December 2026)) | ¥8,996 million | ¥5,061 million (cumulative Q1 FY2025 (ending December 2025)) | ↑ |
| Operating income (segment, cumulative Q1 FY2026 (ending December 2026)) | ¥655 million | ¥612 million (cumulative Q1 FY2025 (ending December 2025)) | ↑ |
| Net sales (segment total, full-year results) | ¥22,891 million (FY2025 (ending December 2025) full year) | — | — |
| Operating income (full-year results) | ¥1,963 million (FY2025 (ending December 2025) full year) | — | — |
Business Details
Centered on Building Construction (public facilities, commercial facilities, condominiums, etc.), Civil Engineering Works (rivers, roads, sewerage, etc.), Plumbing, Sanitary & HVAC Works, urban gas pipeline laying, and Gas Facility Works. In addition to the parent company, this segment includes consolidated subsidiaries Mikis Engineering Co., Ltd. (gas appliance sales and installation) and Hyo Koumuten Co., Ltd. (building construction). Gas pipeline works for Osaka Gas Network Co., Ltd. constitute one of the major customer bases. This is the core segment, accounting for approximately 71% of the Group's consolidated net sales.
Recent Overview
Net sales increased 77.8% year-on-year due to steady progress on carried-over projects and the sale of a whole-building condominium
In Q1 FY2026 (ending December 2026) (January to March 2026), Construction Business segment net sales were ¥8,996 million (up 77.8% year on year). This was mainly driven by steady progress on projects carried over from the end of the prior consolidated fiscal year and the sale of a whole-building condominium. Operating income increased to ¥655 million (up 7.1% year on year), but rising construction costs and higher personnel expenses associated with a revision to the personnel system pressured the profit margin. Against the sharp increase in net sales, the growth in profit was limited, and the operating margin declined to 7.3% (from 12.1% in the same period of the previous year).
Key Products
Growth Drivers
- Steady progress on projects carried over from the end of the prior consolidated fiscal year led to a sharp increase in completed construction revenue for the current quarter
- Recognition of real estate sales from the sale of a whole-building condominium
- Maintenance of a favorable order environment amid steady public and private capital investment
- Expanded building construction capacity through the consolidation of Hyo Koumuten Co., Ltd.
- Stable order base for gas pipeline works for Osaka Gas Network Co., Ltd.
Risks
- Constraints on construction capacity due to chronic labor shortages
- Rising construction costs due to surging material prices and labor costs (increase in construction costs continued in the current quarter)
- Pressure on profit margins from increased personnel expenses associated with the revision of the personnel system
- Maintaining sales in subsequent periods may be a challenge depending on the level of the order backlog (full-year order backlog of ¥14,749 million, down 21.2% year on year)
- Customer concentration risk due to sales dependence on Osaka Gas Network Co., Ltd.
- Estimation uncertainty regarding progress and profitability of large-scale projects (revenue recognition estimation risk under the percentage-of-completion method)
- Risk of further increases in construction costs due to prolonged rises in crude oil prices and logistics disruptions
Last updated: March 25, 2026