SHIMIZU CORPORATION
1803・Prime Market・Construction
Business
Shimizu Corporation was founded in 1804 and changed to its current company name in 1948, making it one of Japan's leading general construction companies. The Group consists of 142 subsidiaries and 23 affiliated companies, and operates a construction business centered on domestic and overseas building and civil engineering contracting, an investment and development business handling real estate development and leasing, a road paving business operated by Nippon Road Co., Ltd., and diversified businesses including engineering, green energy development, and building life cycle operations. Major customers span private developers, manufacturers, and government agencies, and the company has a track record of constructing ultra-large-scale projects such as TOKYO TORCH Torch Tower and major redevelopment projects. Consolidated net sales for FY2026 (ending March 2026) were ¥2,057,802 million.
Business Model
The majority of revenue consists of completed construction revenue based on construction contracts (building and civil engineering) in the construction business. Revenue is recognized according to the percentage of completion from order receipt through construction and handover. In addition, the investment and development business accumulates stable, high-margin revenue (segment profit margin of 31.5%) through leasing and sale of self-developed real estate, and non-construction businesses such as engineering and green energy development aim to contribute to revenue diversification and stabilization.
Company Strengths
As of the end of March 2026, non-consolidated backlog carried forward to the next fiscal year reached ¥2,568,757 million (up 14.0% year on year), including super-large redevelopment projects such as TOKYO TORCH Torch Tower, the Nihonbashi 1-chome Chuchiku District, and the Toyomi District. This high level of order backlog provides visibility into revenue over the coming years and constitutes a company-specific competitive advantage underpinning the stability of business performance.
Through production process reforms such as stricter pre-order screening and promotion of front-loading, the non-consolidated gross profit margin on completed construction (architecture) improved significantly from 7.3% in the previous fiscal year to 10.8% in the current fiscal year. Consolidated operating profit for FY2026 (ending March 2026) reached ¥118,669 million, up 67.1% year on year, providing numerical confirmation of the shift to a high-profitability business structure.
Utilizing its own world-class self-propelled SEP vessel
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) were ¥2,057,802 million (up 5.8% year on year), operating income was ¥118,669 million (up 67.1% year on year), and profit attributable to owners of parent was ¥126,617 million (up 91.8% year on year), representing a substantial increase in earnings. The recovery from the FY2024 operating loss (-¥24,685 million) has become firmly entrenched, and profitability is in a clear improvement phase. Externally, solid public investment and a recovery in private-sector capital expenditure served as tailwinds, while elevated construction material and energy prices along with rising labor costs continued to weigh as cost pressures. For FY2027 (ending March 2027), net sales are forecast at ¥2,310,000 million (up 12.3%) and operating income at ¥153,000 million (up 28.9%).
Growth Strategy
The company aims for consolidated ordinary profit of ¥200,000 million or more by 2030, driven by both improved profitability in the construction business and scaling up of non-construction businesses.
While continuing to improve profitability on domestic building construction, the company is strengthening intake of high-value-added projects such as large-scale redevelopment, data centers, and logistics facilities. The non-consolidated order backlog carried forward stood at a high level of ¥2,636,969 million (+13.3% year on year), and the company aims for non-consolidated completed construction revenue of ¥1,660.0 billion in FY2027 (ending March 2027) (+11.4% year on year).
Toward achieving the reduction target set in November 2024 (10% or less of consolidated net assets by end of March 2027), the effective ratio—including stocks for which sale has already been agreed—has already reached 9.1%. Gains from sales will be allocated to shareholder returns and growth investment, aiming for sustained improvement in ROE. Annual dividends are on an increasing trend, with ¥72 for FY2026 (ending March 2026) (up from ¥38 in the previous fiscal year) and a forecast of ¥77 for FY2027 (ending March 2027).
On March 30, 2026, the company made Aomi Construction Co., Ltd., which primarily handles marine civil engineering and ground improvement work, a subsidiary (acquisition cost ¥13,340 million, voting rights 69.26%). The company aims to integrate technologies in the civil engineering field and realize group-wide synergies in the offshore wind power business, an area expected to see market growth going forward.
Following the tender offer in July 2025 (acquisition cost ¥55,246 million), Nippon Road Co., Ltd. was made a wholly owned subsidiary. Through group integration of the road paving business, the company is pursuing effects such as lower fundraising costs, strengthened order coordination, and vertical integration of asphalt mixture manufacturing and sales. Road paving segment profit improved to ¥10,585 million in the current fiscal year (+7.0% year on year).
The company is promoting expanded order intake in the GX (green transformation) and advanced manufacturing facilities fields within the engineering business, scaling up the green energy development business, and advancing DX (digital transformation) responsiveness in the building lifecycle business. The "Other" segment profit improved to ¥30,527 million in the current fiscal year (+22.4% year on year), but expansion of revenue in non-construction businesses remains a work in progress, and acceleration will be required to achieve the 2030 target.
Last updated: July 19, 2026