OHMOTO GUMI CO., LTD.

Omoto Co., Ltd. was founded in 1937 in Okayama City and is a mid-tier general contractor with net sales of ¥87,448 million in FY2026 (ending March 2026). The company operates two nearly equal business segments, Architecture (net sales of ¥44,508 million) and Civil Engineering (net sales of ¥42,940 million), handling a wide range of construction types, from private-sector building projects such as commercial facilities, distribution centers, and factories, to public civil engineering works including ports, roads, and sewage systems. The Ministry of Land, Infrastructure, Transport and Tourism is its largest customer, accounting for 18.4% of completed construction revenue, and the company secures stable orders from both public and private sectors. It maintains branch offices in Tokyo, Osaka, Sendai, Fukuoka, and other locations, building a nationwide construction network. Its subsidiary Techno Assist Co., Ltd. operates an environmental maintenance business, while affiliate Quint Kikaku Co., Ltd. operates an insurance agency business. The company is listed on the Standard Market of the Tokyo Stock Exchange.

The company undertakes construction contracts and applies the percentage-of-completion method, recognizing revenue in line with construction progress. Because of the time lag inherent in this structure between order receipt and revenue recognition, the balance of uncompleted construction (backlog) at fiscal year-end pre-determines sales in subsequent periods. Backlog at the end of FY2026 (ending March 2026) reached a record high of ¥148,311 million (Building construction: ¥61,380 million; Civil engineering: ¥86,930 million), underpinning the projected sales of ¥98,000 million for the following fiscal year. Funding relies primarily on internal funds, supplemented as needed by a ¥5.0 billion commitment line with nine partner financial institutions.

Revenue for FY2026 (ending March 2026) increased 24.8% year on year to ¥87,448 million, operating income rose 30.2% to ¥2,362 million, and ordinary income grew 28.3% to ¥2,708 million, achieving higher revenue and higher profit. Order intake expanded significantly, up 26.2% year on year to ¥114,734 million, with growth in both building construction and civil engineering. Externally, steady public investment driven by national resilience policies and disaster prevention/mitigation initiatives, as well as a recovery in private-sector capital expenditure amid improving corporate earnings, provided tailwinds. On the other hand, sustained high construction material prices and rising labor costs weighed on the earnings environment, keeping the operating margin at a low 2.7%. Net income increased only modestly, up 1.4% year on year to ¥1,813 million, largely due to the absence in the current period of the ¥679 million in extraordinary gains (from sales of fixed assets and investment securities) recorded in the prior period. Looking at the five-year trend, operating income bottomed out at ¥580 million in FY2023 (ended March 2023) before continuing on a recovery trajectory, and operating income for FY2027 (ending March 2027) is forecast at ¥4,200 million, up 77.8% year on year.