Oriental Shiraishi Corporation
1786・Prime Market・Construction
Business
Oriental Shiraishi Corporation is a construction group specializing in social infrastructure, positioned as a top runner in both prestressed concrete (PC) technology and the pneumatic caisson method. It was formed in 2007 through the merger of Oriental Construction, founded in 1952, and Shiraishi, founded in 1933, and currently comprises 10 companies. With the construction business (approximately 83% of net sales) as its core, the group also operates a steel structures business handling bridges and other structures (Nippon Bridge), harbor and civil engineering works (Yamaki Kogyo), and solar power generation, real estate leasing, and IT businesses. Its major customers are public institutions such as the Ministry of Land, Infrastructure, Transport and Tourism, Central Nippon Expressway, and West Nippon Expressway, with the top three customers accounting for approximately 37% of net sales. In FY2026 (ending March 2026), consolidated net sales are ¥68,866 million, and the order backlog has climbed to an all-time high of ¥116,685 million.
Business Model
Revenue is predominantly derived from public works contracts awarded by national and local governments and expressway companies, with revenue recognized under the input method based on construction progress. Because of the structural time lag between order receipt and revenue recognition, the order backlog serves as a leading indicator of future revenue. The order backlog of ¥116,685 million at the end of FY2026 (ending March 2026) represents a 15.3% increase year-on-year, indicating capacity for future revenue recognition. Through group expansion via M&A and a capital and business alliance with ITOCHU Corporation, the company aims to strengthen its technical capabilities, customer base, and procurement of materials and equipment.
Company Strengths
With over 70 years of technical accumulation since introducing the PC construction method in 1952, the company is recognized as an industry frontrunner in the pneumatic caisson method as well. It invests ¥901 million annually in R&D (FY2026 (ending March 2026)), continuing development of next-generation technologies such as unmanned construction systems, AI-based settlement prediction, and remote centralized management systems. These specialized technologies form a barrier to entry that competitors find difficult to replicate in a short period.
The order backlog at the end of FY2026 (ending March 2026) reached a record high of ¥116,685 million (up 15.3% year-on-year), of which the construction business alone accounted for ¥106,082 million (up 22.5% year-on-year). Orders received also increased significantly to ¥84,320 million (up 29.6% year-on-year), securing capacity for revenue recognition over multiple future periods. This order accumulation capability is underpinned by long-standing customer relationships and a track record of technical achievement.
In May 2023, the company entered into a capital and business alliance with ITOCHU Corporation, which as of March 31, 2026 is the largest shareholder holding a 19.2% voting rights ratio. The alliance aims to create synergies such as strengthening the bridge infrastructure maintenance business, collaboration on PPP/PFI projects, overseas expansion of products and technologies, and reducing procurement costs for materials and equipment. In June 2026, the companies entered into an amended agreement to deepen this collaboration.
ENVALITH's Perspective
Performance Trend
Revenue rose from ¥60,726 million in FY2022 (ended March 2022) to a peak of ¥67,382 million in FY2024 (ended March 2024), before falling back to ¥64,553 million in FY2025 (ended March 2025). In FY2026 (ended March 2026), revenue reached a new record high of ¥68,866 million. Meanwhile, operating profit, having peaked at ¥6,533 million in FY2024, declined for two consecutive periods to ¥5,434 million in FY2025 and ¥5,334 million in FY2026. Net income also fell sharply, from ¥4,632 million in FY2024 to ¥3,381 million in FY2026. Earnings were pressured by an increase in selling, general and administrative expenses (including ¥313 million of goodwill amortization related to M&A) and an extraordinary loss of ¥774 million associated with bridge remanufacturing. For FY2027 (ending March 2027), the company forecasts revenue of ¥75,000 million (up 8.9% year on year), while operating profit is projected to decline sharply to ¥4,000 million (down 25.0% year on year), with a recovery in profitability expected to be deferred until FY2028 (ending March 2028) or later. In terms of the external environment, public investment remains solid, but the structural pressure of rising material and labor costs on cost of sales continues.
Growth Strategy
Under the new Medium-Term Management Plan 2026-2028, the company is promoting the enhancement of corporate value through fostering a safety culture, M&A, and the introduction of DOE.
In response to the quality non-conformance issue in the Yodogawa Bridge renovation work on the Hanshin Namba Line and the accident on the Chugoku Expressway, the company has designated "fostering a safety culture" as the top priority in its new Medium-Term Management Plan. It is pushing forward with a groupwide rebuilding of the quality control system and strengthened governance, aiming to restore social trust and re-establish its business foundation.
The company made Denka Renotech Co., Ltd. (デンカリノテック), which possesses specialized technology for repairing and reinforcing concrete structures, a subsidiary effective April 1, 2025 (acquisition cost of ¥331 million, voting rights ratio of 51%). The aim is to create synergies by combining it with the company's bridge, design, and construction technologies. The absorption-type merger of Kikumasa (菊政) and Kikumasa Koumuten (菊政工務店) by Taiko Giken (タイコー技建), effective January 1, 2026, also strengthened the caisson business foundation.
The targets for the final year (FY2029, ending March 2029) are net sales of ¥80,000 million (note: the original text states ¥80 billion), gross profit margin of 19.5%, operating profit of ¥6,800 million (note: the original text states ¥6.8 billion), and ROE of 8% or higher. While securing stable earnings through the acquisition and execution of high-value-added orders in core businesses and streamlining construction processes, the company is steadily preparing for new areas such as environment-related businesses and overseas expansion.
While maintaining the conventional total return ratio target of approximately 70%, the company newly established the dividend on equity ratio (DOE) as a dividend indicator, targeting a DOE of 4.0% for FY2029. The dividend per share was maintained at ¥14.5 for both FY2026 (ending March 2026) and FY2027 (ending March 2027). The dividend payout ratio is trending upward, at 55.4% for FY2026 (ending March 2026) and a projected 68.1% for FY2027 (ending March 2027).
Last updated: July 19, 2026