MATSUI CONSTRUCTION CO., LTD.
1810・Standard Market・Construction
Business
Matsui Construction Co., Ltd. was founded in 1586 (Tensho 14) and is a general contractor listed on the Standard Market of the Tokyo Stock Exchange with a corporate history of more than 440 years. Construction contracting operations (building and civil engineering) constitute the core business, accounting for approximately 98% of consolidated net sales, and the Company conducts business together with its consolidated subsidiaries Matsui Reform Co., Ltd. and Matsuyu Shoji Co., Ltd. Major customers include government agencies and private-sector companies; in FY2026 (ending March 2026), net sales of ¥17,524 million were generated from government-related clients and ¥77,028 million from private-sector clients. The Company has a broad track record spanning traditional construction such as shrines, temples, castles, and cultural properties to general building and civil engineering works, and also conducts complementary real estate sales, leasing, and design/supervision businesses.
Business Model
The core model is a construction contract model in which completed construction revenue is recognized upon completion and delivery of construction work under contracts. Since a certain period is required from order receipt to completion, the balance carried forward to the next period (¥111,998 million at the end of FY2026 (ending March 2026)) serves as a leading indicator of future sales. The structure is such that gross profit margin on completed construction is improved through a shift toward selective order-taking and progress in passing through material and other cost increases, while real estate leasing revenue (¥1,111 million in FY2026 (ending March 2026)) functions as a stable supplementary revenue source.
Company Strengths
Since its founding in 1586, the company has positioned the preservation of traditional architecture—shrines, temples, castles, and cultural properties—as a social mission. As demonstrated by its construction track record, including the second phase of preservation and repair work on the Former British Consulate Main Building in Nagasaki (an Important Cultural Property), the accumulated traditional techniques, which are difficult for competitors to replicate in a short period, serve as a key differentiating factor.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 65.1% (up 2.5 percentage points from the previous fiscal year-end), with total net assets of ¥57,028 million. The company has entered into commitment line agreements totaling ¥8,000 million with five partner banks, and cash and cash equivalents on hand reached ¥16,459 million. Reliance on interest-bearing debt is low, reflecting a high degree of financial soundness.
As of the end of FY2026 (ending March 2026), the carried-forward order backlog for the non-consolidated construction business stood at ¥111,998 million (up 8.1% year on year), of which the backlog for building construction work was ¥110,462 million (up 8.5% year on year). This includes large-scale projects such as the new construction of the (tentatively named) Kitaku-ritsu Horifune Junior High School complex facility (scheduled for completion in July 2027), securing a revenue base for the next one to two years.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥96,969 million in FY2024 (ending March 2024), followed by ¥99,253 million in FY2025 (ending March 2025) and ¥96,037 million in FY2026 (ending March 2026), showing a slight declining trend. Meanwhile, operating profit bottomed out at ¥264 million in FY2024 (ending March 2024) before rebounding sharply for two consecutive periods to ¥3,382 million in FY2025 (ending March 2025) and ¥5,659 million in FY2026 (ending March 2026), reaching the highest level in the past five periods. The main driver was improvement in the gross profit margin on completed construction contracts (progress in selective order-taking and price pass-through). Amid continued external pressures from rising materials/equipment prices and labor costs, progress in price pass-through pushed up the profit margin. Operating cash flow was solid at ¥9,222 million, and interest-bearing debt at period-end fell to zero. For FY2027 (ending March 2027), revenue is forecast at ¥96,000 million and operating profit at ¥5,400 million, roughly flat to a slight decline.
Growth Strategy
Continuation of "right-sized management and qualitative growth" through selective order-taking, profitability improvement, and a consolidated payout ratio target of around 50%
A strategy of eliminating low-profitability projects while promoting a higher proportion of negotiated (tokumei) orders and price pass-through to raise the gross profit margin on completed construction. In FY2026 (ending March 2026), gross profit on completed construction reached ¥10,261 million, achieving significant improvement year on year.
Next-period carry-forward orders in the non-consolidated construction business expanded to ¥111,998 million (up 8.1% year on year), with building construction carry-forward orders at ¥110,462 million (up 8.5% year on year). Order intake of ¥103,029 million (down 2.1% year on year) showed slight softening, but the high level of carry-forward orders provides strong visibility into next-period revenue.
The company has adopted a policy of stable dividends targeting a consolidated payout ratio of around 50% for the time being. In FY2026 (ending March 2026), the payout ratio was 51.4% with an annual dividend of ¥78. For FY2027 (ending March 2027), an annual dividend of ¥70 (interim ¥35, year-end ¥35) is planned, continuing returns linked to profit levels.
Interest-bearing debt has been reduced to zero, and the balance of investment securities has expanded to ¥20,196 million (from ¥14,657 million in the previous period). While enhancing financial soundness with an equity ratio of 65.1%, unrealized gains on held assets (valuation difference on available-for-sale securities of ¥10,698 million) have also grown.
Last updated: July 19, 2026