DAISUE CONSTRUCTION CO.,LTD.

Business Details

The Daimatsu Construction Group centers on the construction business (general building construction), with ancillary operations in real estate, insurance agency, worker dispatching, security services, and home-visit nursing care. Its principal customers are private-sector developers, with private-sector work accounting for over 99% of completed construction revenue. The company has a high ratio of negotiated (tokumei) orders and leverages relationship-building with repeat customers as a key strength. Under its mid- to long-term management plan "Road to 100th anniversary - Challenge for a Leap Forward" (FY2024-FY2030), the company achieved its key FY2030 management targets ahead of schedule in FY2025 and subsequently revised the plan upward.

Recent Overview

In FY2026 (ending March 2026), both net sales and operating profit increased substantially, with mid- to long-term plan targets achieved ahead of schedule

In FY2026 (ending March 2026), consolidated net sales rose to ¥105,554 million (up 18.6% year on year) and operating profit rose to ¥6,579 million (up 78.0% year on year), achieving substantial growth in both revenue and profit. The gross margin on completed construction improved to 11.2% (from 9.3% in the prior period). Orders received rose to ¥154,357 million (up 34.5% year on year) and the backlog carried forward rose to ¥179,939 million (up 38.1% year on year), building up the order backlog and strengthening the revenue base for subsequent periods. Having achieved the FY2030 target management indicators ahead of schedule in FY2025, the company revised its mid- to long-term management plan upward. Although an impairment loss of ¥1,412 million was recorded on technology-related assets and other items at consolidated subsidiary Kojima-gumi Co., Ltd., the company secured operating cash flow of ¥9,299 million, and cash balance at period-end increased to ¥10,776 million.

Key Products

Growth Drivers

• Substantial expansion of orders received, driven by continued firm private-sector construction demand (non-consolidated orders received of ¥152,882 million, up 34.4% year on year)
• Expansion of completed construction revenue due to an increase in the backlog carried over at the start of the period (completed construction revenue of ¥104,699 million, up 18.8% year on year)
• Improvement in gross margin driven by improved construction profitability (gross profit on completed construction of ¥11,742 million, up 44.9% year on year)
• Improved visibility of revenue and profit for subsequent periods due to a backlog carried forward of ¥179,939 million (up 38.1% year on year)
• Acceleration of growth through further strengthening of the general building construction business, M&A, and DX utilization based on the upward revision of the mid- to long-term management plan
• Expansion of the investor base through enhanced shareholder returns based on a basic policy of a total payout ratio of 50% or more and a DOE of 4.0% or more

Risks

• Risk of rising construction costs due to surging construction material prices and increasing labor costs
• Risk of constrained construction capacity due to worsening chronic shortages of skilled labor
• Risk of decline in private-sector capital expenditure due to deterioration of the external environment, including U.S. trade policy, geopolitical risk, and changes in monetary policy
• High sensitivity to economic fluctuations due to concentration of sales on private-sector clients (over 99%)
• Risk of additional impairment losses due to continued weak performance at consolidated subsidiary Kojima-gumi Co., Ltd. (an impairment loss of ¥1,412 million was recorded again in FY2026 (ending March 2026))
• FY2027 (ending March 2027) is forecast to see lower revenue and profit, with net sales of ¥98,400 million (down 6.8% year on year) and operating profit of ¥5,750 million (down 12.6% year on year); the pace of backlog execution and trends in new order intake will be key to performance