OHMOTO GUMI CO., LTD.

Business Details

A segment mainly led by the Construction Headquarters, undertaking construction work for both private and public sector clients across a wide range of applications. In FY2026 (ending March 2026), private-sector work accounted for the majority of sales (private sector ¥42,880 million, public sector ¥1,628 million), with orders received and construction executed for a variety of uses including logistics facilities, commercial facilities, factories, and government buildings. Orders received expanded significantly, up 38.3% year on year to ¥63,183 million, and the backlog carried forward to the next period also built up to ¥61,380 million.

Recent Overview

Both orders received and sales increased substantially, with public-sector orders surging and the order backlog building up

In the Construction Business for FY2026 (ending March 2026), orders received grew significantly to ¥63,183 million (up 38.3% year on year), and completed construction revenue rose to ¥44,508 million (up 32.2% year on year), achieving substantial revenue growth. Segment profit also increased to ¥4,163 million (up 17.4% year on year). Public-sector orders surged 138.6% year on year to ¥9,868 million, with large-scale projects such as the Shinagawa Ward new general government building development project secured. The backlog carried forward to the next period built up to ¥61,380 million (up 43.7% year on year), underpinning sales in subsequent periods.

Key Products

Growth Drivers

• Substantial buildup in order backlog: the backlog carried forward to the next period at the end of FY2026 (ending March 2026) reached a record high of ¥61,380 million (up 43.7% year on year), strongly underpinning sales from the following period onward
• Rapid expansion of public-sector orders: against a backdrop of national resilience and disaster prevention/mitigation policies, public-sector construction orders surged 138.6% year on year to ¥9,868 million, diversifying the order base
• Recovery in private-sector capital investment: against a backdrop of improving corporate earnings, private-sector demand for logistics facilities, commercial facilities, factories, etc. remained solid, with private-sector orders received reaching ¥53,315 million (up 28.3% year on year)
• Earnings forecast for FY2027 (ending March 2027): against the company-wide sales forecast of ¥98,000 million (up 12.1% year on year), the abundant order backlog in the Construction Business is expected to drive revenue growth

Risks

• Risk that elevated construction material prices and tight labor supply push up construction costs, compressing completed-construction profit margins
• High dependence on private-sector capital investment trends (private sector accounts for 96.3% of completed construction revenue), creating risk of declining orders and deteriorating profitability during economic downturns
• Volatility in sales dependent on the progress of construction on hand: while the increase in the backlog carried forward is a leading indicator of sales in the following period, construction capacity constraints (labor and materials/equipment) affect progress
• Completed construction revenue for public-sector construction declined significantly, down 48.0% year on year, creating uncertainty about short-term earnings contribution due to the time lag between order receipt and completion