ENVALITH
株式会社髙松コンストラクショングループ logo

TAKAMATSU CONSTRUCTION GROUP CO., LTD.

1762・Prime Market・Construction

Official website
株式会社髙松コンストラクショングループ logo
TAKAMATSU CONSTRUCTION GROUP CO., LTD.1762

Business

Takamatsu Construction Group Co., Ltd. is a holding company for a comprehensive construction group founded in 1917. With Takamatsu Construction, Aoki Asunaro Construction, and Mirai Construction Industry at its core, the group operates in three segments: building construction, civil engineering, and real estate. The building construction business ranges from general construction to temple and shrine construction (Kongogumi Co., Ltd.) and renovation work, while the civil engineering business handles specialized construction types such as harbor and marine works, slope protection, and ground improvement. The real estate business is diversified, ranging from sales of wooden detached houses by Takamatsu House to real estate investment in the United States. Revenue for FY2026 (ending March 2026) reached a record high of ¥357,675 million, and the company is listed on the Tokyo Stock Exchange Prime Market.

Business Model

In the construction business (building and civil engineering), order-based completed construction revenue serves as the main revenue source, with the accumulation of order backlog acting as a leading indicator of future sales. In the real estate business, stock-type revenue is supplemented through the sale, purchase, leasing, and brokerage of real estate for sale. Within the group, construction execution capabilities and real estate development/sales functions are linked to generate added value across the entire value chain. Fundraising combines collection of construction payments, borrowings from financial institutions, and bond issuance, while liquidity is secured through commitment line agreements.

Company Strengths

For FY2026 (ending March 2026), orders received were ¥436,098 million (up 11.4% year on year), net sales were ¥357,675 million (up 3.2%), operating profit was ¥17,897 million (up 56.2%), and net income was ¥11,426 million (up 77.1%), with orders, sales, and profit all reaching record highs. Segment profit in the building construction business increased sharply by 229.9% year on year to ¥12,465 million, clearly reflecting a recovery in construction profitability.

Net sales breakdown consisted of the building construction business at ¥172,838 million (approximately 48%), civil engineering business at ¥100,736 million (approximately 28%), and real estate business at ¥84,100 million (approximately 24%), with the three segments well diversified. The company holds niche areas that are difficult for competitors to replicate, such as specialized civil engineering work including port, slope, and ground improvement work, as well as temple and shrine construction (Kongo Gumi Co., Ltd.), reducing the risk of dependence on a single business.

The company promotes R&D centered on the Takamatsu Construction Group Technical Research Institute, focusing on themes such as environmental and disaster-prevention technology, renewal, decarbonization, labor saving and rationalization, and IT-based construction. R&D expenses for FY2026 (ending March 2026) totaled ¥598 million. The company has developed multiple proprietary technologies to the practical application stage, including mid-rise wooden buildings, a new type of seismic isolation structure, carbon-pool concrete, and AI-based technology to reduce excess tunnel excavation.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) reached ¥17,897 million (up 56.2% year on year), and profit attributable to owners of parent came to ¥11,426 million (up 77.1% year on year), representing a substantial increase in earnings. The operating margin improved from 3.3% in the previous period to 5.0%, marking the highest level in the past five fiscal periods. This was primarily driven by improved profitability in the construction business, and it is commendable that the structural issue of stagnant margins despite revenue growth appears to be resolving.

Cash flow from operating activities for FY2026 (ending March 2026) turned sharply negative at ¥(16,889) million (versus +¥5,132 million in the previous period). This was mainly due to a ¥27,024 million increase in inventories (real estate held for sale and expenditures on real estate business), reflecting a rapid rise in funding needs associated with the aggressive expansion of the real estate business. To cover this, short-term borrowings increased by ¥32,000 million to ¥47,000 million, and as a result, the equity ratio declined from 51.1% to 46.7%. Continued attention is warranted regarding the recovery cycle of real estate inventory and trends in financial leverage.

The company's forecast for FY2027 (ending March 2026) calls for orders received of ¥450,000 million (up 3.2% year on year), net sales of ¥400,000 million (up 11.8% year on year), operating profit of ¥20,000 million (up 11.8% year on year), and profit attributable to owners of parent of ¥12,500 million (up 9.4% year on year). This represents an upward revision of ¥2.5 billion to the net profit forecast compared with the medium-term management plan, which can be read as a sign of the company's confidence. However, the impact of surging crude oil and materials prices stemming from the situation in the Middle East has not been factored into the earnings forecast, and deterioration in the external environment warrants attention as a downside risk.

Growth Strategy

Under the medium-term management plan (FY2026 (ending March 2026) through FY2028 (ending March 2028)), the Company is promoting the development of new business areas, optimization of its business portfolio, and strengthening of group collaboration.

Takamatsu Urban Development was established with the aim of expanding into both upstream and downstream areas of the value chain. Orders received in the real estate business expanded to ¥92,784 million (up 11.7% year on year), and the Company will accelerate revenue diversification through integrated proposals combining construction contracting and real estate development.

The Company will pursue new areas beyond the scope of its existing construction contracting business, centered on "creating and regenerating urban communities," "pursuing a circular economy," and "developing digital infrastructure." Under the group purpose of "Resonating through connections, creating only-one value," the Company aims to evolve into a business entity that itself conceives, invests in, and designs solutions to social issues.

From the perspective of optimizing the group as a whole, the Company will reorganize its human resources and organization and allocate capital strategically, aiming to shift toward a business portfolio with higher capital efficiency. The medium-term management plan sets a basic policy of a payout ratio of approximately 40% and progressive dividends, with the dividend for FY2027 (ending March 2027) planned at ¥144 (payout ratio of 40.1%). For FY2026 (ending March 2026), the Company implemented a substantial dividend increase to ¥130 (payout ratio of 39.6%).

By thoroughly sharing management resources across the group, the Company will accelerate investment in human resources, research and development, and information systems, thereby achieving a fundamental improvement in technological capability and productivity. This includes promoting productivity improvement measures through the use of DX and AI.

Last updated: July 19, 2026