Nishimatsu Construction Co., Ltd.

Business Details

Engages in the contracting of civil engineering works in Japan and related businesses. Public sector works such as roads, dams, tunnels, and erosion/flood control constitute the mainstay of orders received, with public institutions such as the Ministry of Land, Infrastructure, Transport and Tourism as the main customers. Of the ¥140,732 million in completed construction revenue for FY2026 (ending March 2026), public sector work accounted for ¥81,156 million (57.7%), private sector work for ¥39,987 million (28.4%), and overseas work for ¥19,588 million (13.9%). The backlog of ¥350,376 million (as of end of March 2026) continues to represent an ample order book.

Recent Overview

Both revenue and profit increased, though margin declined slightly

In FY2026 (ending March 2026), Civil Engineering Business segment revenue was ¥121,904 million (up 12.9% year on year) and segment profit was ¥9,120 million (up 3.2% year on year), achieving higher revenue and profit. Construction progressed generally smoothly, increasing gross profit on completed construction. On the other hand, orders received (non-consolidated) fell sharply to ¥81,594 million (down 57.0% year on year); this reflects a deliberately restrained order-taking plan set for the period given the ample backlog carried over from the prior fiscal year-end, and the result nonetheless exceeded the initial plan. Overseas orders surged 198.3% year on year to ¥44,892 million, driven by the acquisition of a large-scale civil engineering project in the Philippines.

Key Products

Growth Drivers

• Steady trend in government construction investment (demand for public works such as roads, dams, and erosion/flood control)
• Stable revenue progress supported by the ample backlog (¥350,376 million) carried over from the prior fiscal year-end
• Rapid expansion in overseas civil engineering orders (backlog of ¥95,703 million driven by the acquisition of large-scale projects such as the Manila Metro in the Philippines)
• Demand for disaster prevention and restoration works, including recovery from the Noto Peninsula earthquake and decontamination of the specified reconstruction and residence zone in Namie Town
• Securing human resources for the technical proposal department to expand the scale of public works orders received

Risks

• Downward pressure on gross profit margin on completed construction due to persistently high construction material prices
• Rising labor costs due to tight labor supply-demand and shortages of specialized contractors
• Uncertainty regarding the timing of completion of large-scale works and the acquisition of design changes
• Domestic public sector civil engineering orders received fell sharply by 57.0% year on year, and the decline in backlog (down 3.8% year on year) could affect the medium-term scale of revenue
• Possibility of curtailed public investment amid downside economic risk stemming from factors such as U.S. trade policy
• Risk of delayed commencement of overseas civil engineering works and reduced prospects for acquiring design changes (as evidenced by the widening loss in the International Business segment)