DAIHO CORPORATION
1822・Standard Market・Construction
Civil Engineering Business
Taiyu Kensetsu's core segment, built on strength in shield tunneling and pneumatic caisson methods.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year) | ¥70,314 million | ¥70,794 million | ↓ |
| Operating income (full year) | ¥3,161 million | ¥3,647 million | ↓ |
| Segment assets | ¥96,674 million | ¥88,348 million | ↑ |
| Depreciation (full year) | ¥410 million | ¥569 million | ↓ |
| Orders received (full year, non-consolidated) | ¥51,852 million | ¥43,222 million | ↑ |
| Order backlog (non-consolidated) | ¥129,434 million | ¥130,659 million | ↓ |
| Operating margin | 4.5% | 5.2% | ↓ |
Business Details
This segment covers the full range of civil engineering works undertaken by Taiyu Kensetsu Co., Ltd. and its subsidiary Morimoto-Gumi Co., Ltd., either as contractor or in a cooperative construction role. The core business centers on public infrastructure development such as sewerage, rivers, roads, and tunnels, with domestic public-sector orders accounting for the majority of sales. The segment also has a construction track record overseas (East Asia and elsewhere). The company holds a competitive advantage in shield tunneling and pneumatic caisson methods, and its medium-term management plan calls for concentrating management resources on core competency areas and advancing R&D in sewerage renewal technologies.
Recent Overview
Orders received recovered, up 20.0% year-on-year, but net sales and operating income declined slightly.
In the civil engineering business for FY2026 (ending March 2026), consolidated net sales declined 0.7% year-on-year to ¥70,314 million, and operating income fell 13.3% to ¥3,161 million, reflecting lower revenue and profit. On the other hand, non-consolidated orders received recovered sharply, up 20.0% year-on-year to ¥51,852 million, with public-sector orders accounting for 53.9% of the total. The order backlog remained at a high level of ¥129,434 million. For FY2027 (ending March 2027), non-consolidated completed construction revenue is forecast to increase 6.9% year-on-year to ¥110,000 million. The medium-term management plan calls for concentrating management resources on core competency areas such as pneumatic caisson and shield tunneling methods, and advancing R&D in sewerage renewal technology.
Key Products
Growth Drivers
- Resilient trend in public investment backed by the government's national resilience measures and disaster prevention/mitigation investment
- Increased order opportunities for shield tunneling and pneumatic caisson methods driven by growing demand for stormwater countermeasures and sewerage development in urban areas
- Accumulation of future sales from a 20.0% year-on-year increase in non-consolidated orders received (¥51,852 million)
- Development of new markets through R&D advancement in sewerage renewal technology
- Strengthened competitive advantage and improved profitability through concentration of management resources on core competency areas
- Diversification of the order base through strengthening of the maintenance and repair business (seismic reinforcement of river levees, highway deck slab replacement, etc.)
Risks
- Risk of rising construction costs due to further increases in construction material and labor costs (operating margin declined from 5.2% in the prior period to 4.5% in the current period)
- Risk of constraints on construction capacity and project delays due to shortage of construction workers
- Risk of timing shifts in sales recognition due to delays in progress on large-scale projects
- Slight decline in order backlog, down 0.9% year-on-year (¥129,434 million), with implications for medium- to long-term sales accumulation
- Risk of additional provisions for construction contract losses due to uncertainty in estimating total construction costs
- Risk of fluctuation in overseas civil engineering sales (overseas sales of ¥10,628 million in the current period)
Last updated: June 23, 2026