MASARU CORPORATION

Business Details

Masaru Corporation and its subsidiary Innovate Co., Ltd. carry out construction of waterproofing work for new buildings, renovation work, and directly contracted work, as well as sales of construction materials and equipment rental. Customers are centered on major general contractors such as Kajima Corporation and Taisei Corporation, with all orders coming from private-sector construction. Under the long-term management plan theme of "becoming the No. 1 share holder among the top 10 general contractors," the segment is working to secure a stable order base across the three markets of new construction, renovation, and direct orders.

Recent Overview

Net sales declined 14.0% year on year, but segment profit was maintained at the same level as the prior-year period

In the Construction Work Business segment for H1 FY2026 (ending March 2026) (October 2025 to March 2026), net sales were ¥4,324 million (down 14.0% year on year). Meanwhile, segment profit was maintained at ¥392 million, the same level as ¥392 million in the same period of the previous fiscal year, confirming that profitability was preserved. Order intake was limited to ¥4,304 million (down 5.0% year on year). Amid continued lengthening of construction periods for ordered projects, the company continues to respond to rising labor costs and persistently high raw material prices.

Key Products

Growth Drivers

• Stable order intake for new construction waterproofing work driven by continued demand for large-scale redevelopment and office relocation in central Tokyo
• Expansion of renovation demand driven by low vacancy rates (2.22% as of March 2026) and a rising rent trend (¥22,302 per tsubo) in the office leasing market in Tokyo's five central wards
• Increased proportion of highly profitable projects through strengthened development of the direct-order market
• Strategy of concentrating share among the top 10 general contractors (main customers including Kajima Corporation and Taisei Corporation)
• Expansion of the order base through collaboration with Innovate Co., Ltd.
• Solid demand in the construction market, with private-sector construction orders received by Japan's 50 largest contractors increasing year-on-year (February 2026)

Risks

• Rising construction costs and pressure on profitability due to persistently high material prices and labor costs
• Risk of declining estimate accuracy and provisions for construction losses associated with prolonged construction periods
• Customer concentration risk due to sales concentration on a small number of major general contractors (Kajima Corporation, Taisei Corporation, etc.)
• Concerns about a shrinking new construction market due to fluctuations in floor space started and planned construction expenditure for non-residential buildings in the Tokyo metropolitan area
• Increased costs for securing the construction capacity of partner companies and for recruiting and training skilled workers amid labor shortages
• Uncertainty in the external environment, including developments surrounding U.S. trade policy, affecting construction investment sentiment