SANTO CO.,LTD.
1788・Standard Market・Construction
Civil Engineering Business
The Group's largest segment, handling public-works-centered civil engineering works overall
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (cumulative Q3, FY2026 ending March 2026) | ¥4,077 million | ¥3,723 million (cumulative same period prior year) | ↑ |
| Segment profit (cumulative Q3, FY2026 ending March 2026) | ¥410 million | ¥310 million (cumulative same period prior year) | ↑ |
| Operating margin on revenue (cumulative Q3, FY2026 ending March 2026) | 10.1% | 8.3% (cumulative same period prior year) | ↑ |
| Completed construction revenue (full year, 71st term) | ¥4,697 million | － | — |
| Segment profit (full year, 71st term) | ¥273 million | － | — |
Business Details
Comprises three divisions: General Civil Engineering (erosion/flood control, water and sewerage, ports/airports, roads, etc.), Paving (road paving and special greening methods), and Underground Technology (ground improvement JST works, continuous underground wall TRD works, small-diameter pipe jacking works, etc.). Public works for government agencies form the core business, with Shiga Prefecture as the largest customer. The Company, Furusawa Construction Co., Ltd., and Kusatsu Ritto Crematorium Service Co., Ltd. are involved. Completed construction revenue for the cumulative nine months of FY2026 (ending March 2026) was ¥4,077 million, accounting for approximately 50% of the Group's total revenue of ¥8,134 million.
Recent Overview
Group share declined due to rapid expansion of the Construction Business, but profit margin improved significantly
Completed construction revenue for the cumulative nine months of FY2026 (ending March 2026) was ¥4,077 million (up 9.5% year on year), and segment profit was ¥410 million (up 32.4% year on year). Operating margin on revenue improved significantly from 8.3% in the same period of the prior year to 10.1%. As the Construction Business expanded rapidly, up 74.3% year on year, this segment's share of Group revenue declined from approximately 61% to approximately 50% year on year, but its contribution to profit remains at a high level.
Key Products
Growth Drivers
- Expansion of public works orders: Completed construction revenue for government agencies in the 71st term rose sharply to ¥2,875 million (up 25% year on year)
- Accumulation of orders received during the period: Civil Engineering Business orders received during the 71st term rose sharply to ¥5,197 million (up substantially from ¥3,400 million in the prior term)
- Accumulation of carried-forward construction value: Carried-forward construction value at the end of the 71st term remained at a high level of ¥2,889 million (versus ¥1,948 million at the end of the prior term)
- Improved profit margins through proactive negotiation of contract price changes accompanying changes in construction content (operating margin on revenue of 10.1% for the cumulative nine months of FY2026 ending March 2026)
- Improved on-site productivity and more efficient process management through construction DX and BIM/CIM utilization
Risks
- Decline in public works contract value: Public works contract value declined for four consecutive months as of the end of the third quarter
- Rising construction costs: Continued material cost inflation due to yen depreciation and other factors, making accurate cost estimation difficult
- Severe labor shortage: The aging of construction workers and labor shortages continue as structural challenges
- Intensifying order competition: Maintaining profit margins amid a severe order competition environment is a challenge
- Risk of dependence on government agencies: High dependence on a specific customer, with Shiga Prefecture accounting for 23.3% of revenue
Last updated: September 29, 2025