MORIYA CORPORATION
1798・Standard Market・Construction
Building Construction Business
The core segment of the Moriya Corporation Group, accounting for approximately 84% of consolidated net sales, engaged in building construction contracting
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (net sales) | ¥42,865 million | ¥38,873 million | ↑ |
| Segment operating profit | ¥5,154 million | ¥3,461 million | ↑ |
| Segment operating margin | 12.0% | 8.9% | ↑ |
| Segment assets | ¥12,298 million | ¥10,270 million | ↑ |
| Orders received | ¥40,400 million | ¥50,193 million | ↓ |
| Backlog | ¥38,117 million | ¥40,582 million | ↓ |
Business Details
The Company, together with its subsidiaries Kizai Service Co., Ltd. and Mirai Network Co., Ltd., operates a general building construction contracting business. The segment focuses on region-based construction primarily centered on Nagano Prefecture, undertaking both public and private building construction orders. Backed by an ample carryover of construction projects from the previous fiscal year and steady progress on work, completed construction revenue and operating profit both increased substantially. Profitability has been strengthened through thorough cost and process control as well as expense reductions.
Recent Overview
Both completed construction revenue and operating profit increased substantially, but orders received fell sharply by 19.5% year on year
In the building construction business for FY2026 (ending March 2026), due to an ample carryover of construction projects from the previous fiscal year and steady construction progress, completed construction revenue reached ¥42,865 million (up 10.3% year on year) and operating profit reached ¥5,154 million (up 48.9% year on year), representing a substantial profit increase. On the other hand, orders received in the fiscal year fell sharply to ¥40,400 million (down 19.5% year on year), and the year-end backlog also declined to ¥38,117 million (down 6.1% year on year), raising concerns about downward pressure on sales from the next fiscal year onward.
Key Products
Growth Drivers
- Accumulation of completed construction revenue from an ample carryover of construction projects from the previous fiscal year
- Solid demand for private construction inquiries backed by inbound demand amid active resort and tourism-related investment within Nagano Prefecture
- Significant improvement in profit margin (operating margin rose from 8.9% to 12.0%) through thorough cost and process control and expense reductions
- Securing and improving construction profitability through progress in passing persistently high construction costs through to order prices
- Leveraging overall group strength through collaboration with subsidiaries (Kizai Service Co., Ltd. and Mirai Network Co., Ltd.)
- Efforts to improve productivity through DX promotion and other initiatives
Risks
- Risk of downward pressure on sales from the next fiscal year onward due to a sharp 19.5% year-on-year decline in orders received (¥40,400 million) and a declining backlog trend
- Risk of rising construction costs and delayed project completion due to worsening shortages of skilled workers and subcontractors
- Risk of further sharp increases in material prices due to persistently high construction material prices and deteriorating conditions in the Middle East
- Risk of intensifying competition and declining order prices in public works due to an increase in bidding participants
- Risk of a slowdown in private capital investment due to rising interest rates and other factors
- In the consolidated earnings forecast for FY2027 (ending March 2027), net sales are projected at ¥49,000 million (down 3.6% year on year), implying an expected decline in the profit contribution from the building construction business
Last updated: June 18, 2026