YAMAURA CORPORATION

Business Details

The Building Construction division handles new construction and renovation of private factories, distribution facilities, medical and elderly care facilities, and condominiums, in addition to public building construction works. The Civil Engineering division undertakes general civil engineering, bridges, disaster prevention works, hydropower generation equipment construction, and more. The design-build ratio (integrated design and construction contracting) reaches approximately 70%, and the segment's strength lies in proposal-based sales leveraging ICT such as BIM, CIM, and 3D laser scanners. Based in southern Nagano Prefecture (Ina Basin), the segment is expanding into areas such as Yamanashi Prefecture. In factory construction, it has ranked No. 1 in construction performance within Nagano Prefecture for three consecutive years.

Recent Overview

Completed construction revenue rose significantly by 23.9% year on year, driven by increased orders in private building construction and public civil engineering works.

In FY2026 (ending March 2026), the Construction Business benefited from increased orders for private building construction works in manufacturing (food, transportation equipment, precision equipment, etc.), transportation industries, and other sectors, as well as river improvement and road construction works underpinned by the National Resilience Plan, achieving completed construction revenue of ¥35,471 million (up ¥6,834 million, or 23.9%, year on year) and segment profit of ¥5,145 million (up ¥787 million, or 18.1%, year on year). Orders received also increased substantially to ¥36,915 million, and the backlog carried forward to the next period grew to ¥36,908 million (up ¥1,815 million year on year), building up the order backlog. The Building Construction division accounted for 83.7% of orders received, while the Civil Engineering division also performed well, increasing by ¥1,377 million year on year.

Key Products

Growth Drivers

• Solid demand for private capital investment (new construction and renovation of factories for food, precision equipment, transportation equipment, and other industries)
• Increased orders for public building construction, river improvement, and road construction works underpinned by the National Resilience Plan
• Competitive advantage in proposal-based sales leveraging ICT such as BIM, CIM, and 3D laser scanners
• High value-added order acquisition and cost reduction through design-build integrated contracting (approximately 70%)
• Expansion of sales area into Yamanashi Prefecture and other regions, and new customer development through public-private partnerships
• Domain strengthening through three factory construction brands (Oishield, e-Fact, and @works)
• Brand strength from ranking No. 1 in factory construction performance within Nagano Prefecture for three consecutive years

Risks

• Rising construction costs due to elevated construction material prices stemming from soaring naphtha prices and construction equipment costs
• Rising labor costs and constrained construction capacity due to worsening shortages of skilled construction workers
• Intensifying order competition and price competition in anticipation of future large-scale projects
• Uncertainty over the outlook for private capital investment amid US trade policy and geopolitical risks
• Risk of order volume fluctuation in projects involving collaboration with the Engineering Business
• Continued cost pressure as evidenced by the slight decline in segment profit margin (from 15.2% to 14.5%)