KUDO CORPORATION
1764・Standard Market・Construction
Construction Business
A core segment engaged in construction, civil engineering, and housing contracting based in Kanagawa and Tokyo, accounting for approximately 62% of group net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (completed construction contracts) – nine months cumulative | ¥11,429 million | ¥8,765 million | ↑ |
| Segment profit (operating income) – nine months cumulative | ¥883 million | ¥498 million | ↑ |
| Gross profit (gross profit on completed construction contracts) – nine months cumulative | ¥1,809 million | ¥1,240 million | ↑ |
| Depreciation expense (group total, nine months cumulative) | ¥236 million | ¥210 million | ↑ |
| Goodwill amortization – nine months cumulative | ¥72 million | ¥0 million | ↑ |
| Goodwill balance (period-end) | ¥607 million | ¥0 million | ↑ |
Business Details
Engages in the design, construction, supervision, and contracting of building and civil engineering works, as well as the design, construction, and contracting of detached houses. The segment is divided into a Construction Division (building construction and civil engineering) and a Housing Division, with new construction of privately-owned condominiums and facilities as its core business. Effective July 1, 2025, the company made Matsushita Kosho Co., Ltd., a civil engineering specialist, a wholly owned subsidiary, incorporating technical capabilities in railway civil engineering and seismic reinforcement work. Its main business territory is the Kanagawa and Tokyo areas, with private-sector developers and social welfare corporations as key customers.
Recent Overview
Significant year-on-year increases in both sales and profit driven by a substantial rise in completed construction volume.
In the nine months cumulative of FY2026 (ending June 2026) (July 2025 to March 2026), net sales of the Construction Business were ¥11,429 million (up 30.4% year on year), and segment profit was ¥883 million (up 77.3% year on year). The Construction Division led the growth, with net sales of ¥7,442 million (up 39.4% year on year) and operating income of ¥600 million (up 94.8% year on year). The Housing Division saw net sales of ¥2,764 million (down 0.3% year on year) but improved profitability with operating income of ¥236 million (up 25.5% year on year). Goodwill of ¥607 million was recognized in connection with the consolidation of Matsushita Kosho.
Key Products
Growth Drivers
- Expansion of orders and progress on large-scale private building construction projects (new condominiums and facilities)
- Incorporation of civil engineering expertise and engineers through the full consolidation of Matsushita Kosho Co., Ltd., generating group synergies
- Steady public investment trends related to disaster prevention/mitigation and aging infrastructure renewal
- Strengthening of a stable order base through an increased proportion of negotiated (non-competitive) orders (83% for building construction)
- Momentum for sales and profit expansion driven by increased completed construction volume in the Construction Division
Risks
- Risk of rising construction cost ratios due to persistently high material prices and rising labor costs
- Constraints on construction capacity due to shortage of engineers and skilled workers
- Weakness in new housing starts and intensifying competition in the Housing Division
- Period-to-period fluctuations in sales and profit due to variability in progress and completion timing of large-scale projects
- Risk of recurrence of past improper cost management issues and the ongoing need to strengthen compliance systems
- Impairment risk related to goodwill from Matsushita Kosho (balance of ¥607 million, amortized over 7 years)
Last updated: September 29, 2025