Nishimatsu Construction Co., Ltd.
1820・Prime Market・Construction
Business
Nishimatsu Construction was founded in 1874 and changed to its current company name in 1948; it is a general contractor listed on the Tokyo Stock Exchange Prime Market. Its core business is the contracting of domestic civil engineering and building construction, and it also operates overseas construction (International Business) in Singapore, the Philippines, Thailand, and other Southeast Asian countries, the sale, leasing, and management of owned real estate (Asset Value-Add Business), and renewable energy and PPP projects (Regional Environmental Solutions Business). Its main customers are national and local governments (public works) and private developers, manufacturers, logistics operators, and others. Through a capital and business alliance with ITOCHU Corporation (which holds 22.00% of voting rights), it collaborates in materials and equipment procurement, real estate development, and DX promotion.
Business Model
In the construction business (civil engineering, building construction, and international), completed construction revenue is recognized based on construction contracts, and the order backlog of ¥688,654 million (as of end-March 2026) serves as a leading indicator of future sales. The Asset Value-Add business accumulates rental income and sales gains from owned real estate, functioning as a stable revenue source that complements fluctuations in the construction business's profit margin. The Regional Environmental Solutions business is nurturing renewable energy and PPP investments. The company has a vertically integrated revenue structure that leverages the construction capabilities and customer network cultivated in the construction business to secure real estate development and overseas infrastructure projects.
Company Strengths
Order backlog at the end of March 2026 stood at ¥688,654 million (civil engineering ¥350,376 million; building construction ¥338,278 million). This includes large-scale projects such as the Tsukiji 2-chome redevelopment, Manila Metro Line 105 section, and Singapore CR110 large-diameter tunnel, providing high visibility into sales progress spanning multiple fiscal periods. The depth of the order backlog serves as a differentiating factor versus competitors.
The gross profit margin on completed construction contracts in the building construction business improved by 3.0 percentage points, from 8.7% in FY2025 (ended March 2025) to 11.7% in FY2026 (ended March 2025). This was mainly driven by continued progress on the profitability improvement plan and the acquisition of design changes on large-scale projects, resulting in segment profit of ¥13,790 million, up 114.7% year on year. The margin also exceeded the initial plan by 1.7 percentage points, confirming an improvement in profitability management capability as reflected in actual results.
In December 2021, the company entered into a capital and business alliance with ITOCHU Corporation. ITOCHU holds 22.00% of voting rights and collaborates in areas such as joint procurement of materials and equipment, circular-type real estate business, joint participation in PPP projects, and construction alliance building. The ability to leverage the ITOCHU group's real estate management expertise, customer network, and procurement functions functions as a competitive advantage that would be difficult to build independently.
ENVALITH's Perspective
Performance Trend
Consolidated results for FY2026 (ending March 2026) showed net sales of ¥396,030 million (up 8.0% year on year), operating profit of ¥28,029 million (up 32.8%), and profit attributable to owners of parent of ¥24,066 million (up 37.2%), with substantial improvement in both sales and profit. The main driver was an increase in gross profit on completed domestic construction work, aided by progress under the profitability improvement plan and the securing of design changes on large-scale projects. The operating margin improved from 5.8% to 7.1%. Externally, an increasing trend in public- and private-sector construction investment provided a tailwind, while rising labor costs and material/equipment prices continued to exert cost pressure. For FY2027 (ending March 2027), net sales are projected at ¥440,000 million (up 11.1%), but net profit is expected to decline to ¥20,500 million (down 14.8%) due to the falloff of extraordinary gains and other factors. The trend over the past five fiscal years (operating profit: ¥23,540 million → ¥12,615 million → ¥18,827 million → ¥21,098 million → ¥28,029 million) shows a clear recovery trajectory from the trough in FY2023 (ended March 2023), confirming a qualitative improvement in the earnings structure.
Growth Strategy
The company aims for sustained improvement in the construction segment's profit margin through stronger profitability management at the time of order-taking and enhanced ability to capture design-change work. In FY2026 (ended March 2026), operating profit rose 114.7% year on year to ¥13,790 million, and with a backlog of ¥338,278 million, stable profit contribution is expected to continue in subsequent periods.
Centered on real estate sales, leasing, and asset management, the company plans to expand real estate business sales to ¥49,000 million in FY2027 (ending March 2027), up 73.4% year on year. Inventory of real estate for sale has increased to ¥14,870 million (about 8 times the level at the previous fiscal year-end), strengthening the foundation for generating gains on sale.
Winning large-scale projects such as Section 105 of the Manila Metro in the Philippines expanded the overseas order backlog to ¥95,703 million (up 37.0% year on year). Aiming to recover from losses caused by construction delays and lost orders (¥2,363 million in FY2026, ended March 2026), the company seeks to restore sales and improve earnings from the following fiscal year onward.
The company is cultivating renewable energy businesses (small-scale hydropower, geothermal, biogas, etc.) and community development projects. In FY2026 (ended March 2026), sales were only ¥748 million with a loss of ¥805 million, reflecting the early investment stage of a still small-scale business. The company aims to expand the scale of this business through growth investment, including M&A, under the
Last updated: July 19, 2026