SONEC CORPORATION
1768・Standard Market・Construction
Business
Sonic Corporation was founded in 1944 and is headquartered in Himeji City, Hyogo Prefecture, operating as a mid-tier construction company. In its core construction business, the company runs a building construction division (private-sector new construction and renovation/extension work) and a civil engineering division (centered on public works), serving a broad range of customers in Hyogo Prefecture, from government agencies to private companies and individuals. As a side business, the company also handles real estate sales and leasing. Its subsidiary Chemical Transport Co., Ltd. (Kemikaru Unyu) operates a transportation business specializing in the transport of hazardous materials and chemicals such as carbon disulfide and liquid sulfur, operating from two bases in Hyogo and Yamaguchi. The company is listed on the Standard Market of the Tokyo Stock Exchange. Consolidated net sales for FY2026 (ending March 2026) were ¥22,754 million.
Business Model
The construction business follows a completed-contract revenue recognition model based on order-by-order contracts. The carried-forward construction backlog at the start of the period serves as a leading indicator of the following period's revenue, and the accumulation of the order backlog affects the stability of business performance. In building construction, the company combines negotiated contracts (designated orders) with competitive bidding, while civil engineering work is primarily awarded through competitive bidding by government agencies. As a basic policy, both working capital and capital expenditure are funded through internal reserves rather than borrowing, maintaining a debt-free management approach.
Company Strengths
In the civil engineering segment, the company has a wide range of public-sector clients spanning from central government agencies to Hyogo Prefecture and municipalities within the prefecture, while in the building construction segment, its client base covers a broad range of industries including hospitals, welfare facilities, manufacturers, and individuals. In FY2026 (ending March 2026), completed construction revenue was ¥4,656 million from the public sector and ¥17,830 million from the private sector, reflecting stable order intake from both public and private sources.
The company maintains a policy of funding both working capital and capital expenditures entirely through internal reserves, sustaining a financial structure that does not rely on interest-bearing debt. As of the end of FY2026 (ending March 2026), total net assets reached ¥10,397 million and cash and cash equivalents reached ¥4,055 million, with the equity ratio remaining at a high level. Capital expenditures of ¥176 million were also funded entirely with internal funds.
The company obtained ISO9002 certification in 1999, ISO9001 in 2003, and ISO14001 in 2008, establishing quality and environmental management systems. Through the development of multi-skilled technical staff, it has achieved flexible and agile construction execution, and building customer trust through the accumulation of an excellent construction track record forms the core of its management policy.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years followed a declining trend, from ¥17,159 million in FY2022 → ¥18,040 million in FY2023 → ¥16,180 million in FY2024 → ¥15,197 million in FY2025, but FY2026 saw a sharp expansion to ¥22,754 million, up 49.7% year on year. Operating profit also recovered from a trough of ¥249 million in FY2024, reaching ¥1,875 million in FY2026, significantly exceeding the ¥1,108 million recorded in FY2022 and marking the highest level of the past five fiscal years. External factors such as robust construction demand (steady in both public and private sectors) provided a tailwind, while internal factors including a rise in the ratio of negotiated (sole-source) orders and improvement in the gross profit margin on completed construction contracts contributed to the profit expansion. However, both revenue and profit are expected to decline in FY2027 (ending March 2027) as a reaction to the strong performance, and whether the high level of results continues will depend on trends in new orders.
Growth Strategy
Aiming to enhance corporate value through a three-pronged approach combining order expansion, profitability management, and human resource development
The company succeeded in raising the negotiated order ratio in construction work from 43.1% to 62.5%. The reduced reliance on competitive bidding improved profitability, directly contributing to the improved profit margin in FY2026 (ending March 2026). The company will continue to deepen relationships with clients and strengthen its proposal capabilities to maintain a high negotiated order ratio going forward.'
The company built up backlog construction value carried forward to the next period of ¥19,487 million (up 19.7% from the end of the previous period), forming the foundation for the significant revenue increase in FY2026 (ending March 2026). Revenue for FY2027 (ending March 2026) is projected at ¥20,650 million (down 8.2% year on year), and maintaining and expanding the backlog through continued accumulation of new orders is essential for stable performance from the next period onward.
The company achieved a 3.6-point year-on-year improvement in the gross profit margin on completed construction contracts. Amid continued increases in material prices and labor costs, the company aims to maintain and improve profit margins by strengthening profitability screening at the order-taking stage and improving construction efficiency. Segment profit in the construction business for FY2027 (ending March 2026) is projected at ¥1,080 million (down 41.9% year on year), a phase in which the effectiveness of cost management will be tested.
Last updated: July 19, 2026