OBAYASHI CORPORATION
1802・Prime Market・Construction
Domestic Building Construction Business
Obayashi's largest revenue segment, centered on domestic building construction contracting
| Period | Current | Previous | Change |
|---|---|---|---|
| External customer net sales | ¥1,138,762 million | ¥1,337,171 million | ↓ |
| Operating income corresponding to external customer net sales | ¥104,088 million | ¥62,784 million | ↑ |
| Orders received (consolidated) | ¥1,200,900 million | (reflects reversal from large-project orders received in the prior period) | ↓ |
| Non-consolidated net sales (building construction work) | ¥1,104,200 million | ¥1,297,600 million | ↓ |
| Non-consolidated orders received (building construction work) | ¥1,164,900 million | ¥1,516,200 million | ↓ |
Business Details
A core segment in which Obayashi Corporation itself handles the order-taking and execution of domestic building construction work. Naigai Technos Co., Ltd. (interior work and construction materials sales), Oak Setsubi Kogyo Co., Ltd. (facility construction), Cypress Sunadaya Co., Ltd. (construction materials sales), Obayashi Facilities Co., Ltd. (comprehensive building management), and others collaborate to provide integrated services ranging from order-taking for building construction work through to post-completion maintenance and management. Private-sector construction accounts for the majority of sales, with major customer segments including large-scale redevelopment projects, transportation infrastructure, and manufacturing capital investment.
Recent Overview
Net sales declined due to reversal from prior-period large-project progress, but operating income increased substantially
In the Domestic Building Construction segment for FY2026 (ending March 2026), external customer net sales decreased to ¥1,138,762 million (prior period: ¥1,337,171 million), while operating income corresponding to external customer net sales achieved a significant increase to ¥104,088 million (prior period: ¥62,784 million). The main driver of the profit improvement was the acquisition of additional and change orders along with an increased contribution from projects with better profitability. Consolidated orders received decreased due to the reversal from large-project orders received in the prior period and planned order-taking activities commensurate with construction capacity.
Key Products
Growth Drivers
- Improvement in gross profit on completed construction contracts through a shift toward projects with better profitability and the acquisition of additional and change orders
- Continuation of a firm order-taking environment backed by steady orders for both private-sector and public construction work
- Steady progress of orders in hand for large-scale redevelopment projects (TAKANAWA GATEWAY CITY, Grand Green Osaka, etc.)
- Firm demand for private-sector capital investment supported by policies to strengthen the supply chain resilience of specified critical materials
- Thorough profitability management through planned order-taking activities commensurate with construction capacity
Risks
- Constraint on net sales due to limits on construction capacity (continuation of planned order-taking activities)
- Risk of rising costs due to soaring construction material prices and other cost increases
- Risk of reduced corporate capital investment appetite due to exchange rate fluctuations and the impact of US trade policy
- Risk of construction delays and cost increases due to labor shortages and difficulty securing skilled workers
- Risk of profit pressure from trends in raw material and energy prices stemming from factors such as the situation in the Middle East
Last updated: June 24, 2026