KAJIMA CORPORATION
1812・Prime Market・Construction
Business
Kajima Corporation is a general construction company founded in 1840 and listed in 1961. In addition to the civil engineering, building construction, and development businesses handled directly by the company, the group comprises 219 subsidiaries and 106 affiliates, including domestic affiliated companies (Kajima Road, Daiko Trading, etc.) and overseas affiliated companies in North America, Europe, Asia, and Oceania (Kajima USA, Kajima Europe, etc.). Against a backdrop of continued high domestic construction demand and expansion of overseas construction and real estate development businesses, consolidated net sales for FY2026 (ending March 2026) reached ¥3,067,275 million, achieving five consecutive years of revenue growth. The company has been building a track record of construction projects across diverse fields, including semiconductors, data centers, urban redevelopment, and infrastructure renewal.
Business Model
The main revenue source is contracted civil engineering and building construction work (approximately 53% of net sales), generating profit through process management from order receipt to construction and completion, and through cost reduction. In addition, the company accumulates stable rental income and gains on sales by holding, leasing, and selling real estate development properties in Japan and overseas. Specialized construction, materials and equipment sales, and leasing businesses conducted by domestic affiliated companies, along with construction and development businesses conducted by overseas affiliated companies, supplement revenue. The backlog of construction work (¥3,071,954 million in the construction business) forms a structure that enhances visibility of future sales.
Company Strengths
Construction segment backlog at the end of FY2026 (ending March 2026) stood at ¥3,071,954 million (up 22.2% from the previous fiscal year-end). The ratio of negotiated (non-competitive) orders in building construction rose from 45.0% in the previous fiscal year to 52.7%, while civil engineering also improved from 27.8% to 35.5%. An order structure that does not rely on competitive bidding has become established, underpinned by strong technical capabilities and proposal strength, demonstrating a competitive advantage that allows selective acquisition of highly profitable projects.
The company has realized A4CSEL, which automates the entire embankment work process, through coordinated operation of four machine types including backhoes and articulated dump trucks, and has deployed it across multiple sites. It holds practical-stage construction automation and labor-saving technologies such as mountain tunnel automation, automated rebar prefabrication methods, and the AI-based bridge soundness diagnosis system "BMStar_AI." R&D expenditure for the fiscal year under review totaled ¥24.2 billion, reflecting accumulated competitive advantage as a technology-driven company.
Rental real estate held a substantial unrealized gain, with a fair value of ¥656,126 million against a book value of ¥369,352 million. The company maintained a 95% occupancy rate across 57 domestic rental properties (approximately 120,000 tsubo of leasable floor space), generating stable rental income. Development assets also expanded, with the development project backlog at fiscal year-end reaching ¥44,139 million (up 20.0% from the previous fiscal year), increasing future capacity for asset sales.
ENVALITH's Perspective
Performance Trend
Revenue increased 47.5% over five fiscal periods, from ¥2,079,695 million in FY2022 (ended March 2022) to ¥3,067,275 million in FY2026 (ending March 2026). Operating profit nearly doubled over the same period, rising from ¥123,382 million to ¥240,780 million, with the operating margin improving from 5.9% to 7.8%. The sharp expansion in FY2026 (ending March 2026) reflects a combination of external factors—sustained high domestic construction demand and a tight supply-demand balance—together with internal factors such as progress on large-scale civil engineering projects during their peak construction phase, an increase in large-scale building completions, and the company's own efforts to reduce costs and secure additional change-order contracts. Profit attributable to owners of parent rose 40.9% year on year to ¥177,334 million, and ROE improved significantly to 13.3% from 10.2% in the prior period. Orders received in the construction business reached a high level of ¥3,263.9 billion (up 24.4% year on year), and the order backlog carried into the next period also stood at ¥3,116,093 million (up 22.2% year on year), indicating strong visibility for future revenue.
Growth Strategy
Advancing the Medium-Term Management Plan (2024–2026) around three pillars: deepening the domestic construction business, expanding development businesses, and growing overseas operations
Through selective order-taking backed by appropriate construction management systems and thorough risk management, the company achieved high gross profit margins of 24.6% in Civil Engineering Business and 11.8% in Building Construction Business. High margin levels are also forecast for FY2027 (ending March 2027) at 20.4% for Civil Engineering Business and 12.0% for Building Construction Business, and the company intends to further strengthen its risk management framework in response to material supply shortages and rising construction costs.
Accumulation of domestic development business assets is progressing steadily, and the company continues to contribute to earnings through planned sales of multiple real estate development properties. Real estate for lease, etc. had a book value of ¥369,352 million against a fair value of ¥656,126 million, representing substantial unrealized gains. The company expects earnings contribution from the sale of multiple properties in the next fiscal year as well.
Operating income at Overseas Affiliated Companies increased 32.8% year on year, mainly due to improved profit margins in the construction business in Europe and Southeast Asia. The sale of a development property in the United States, originally planned for the current fiscal year, has been postponed to the next fiscal year or later; in the next fiscal year, the company plans to proceed with sales while carefully assessing unstable international conditions and financial markets, aiming to expand net income at Overseas Affiliated Companies by 80.3% year on year to ¥18,000 million. The foreign exchange assumption is ¥156.56 to the US dollar.
The company continues to increase dividends with a target payout ratio of 40% (annual dividend of ¥146 for FY2026 (ending March 2026), up from ¥104 in the previous fiscal year). On May 14, 2026, the company resolved to acquire treasury shares of up to 9.0 million shares and up to ¥40.0 billion in total. Next fiscal year's net income is forecast at ¥170.0 billion, substantially exceeding the Medium-Term Management Plan's management target of
Last updated: July 19, 2026