Sata Construction Co., Ltd.
1826・Standard Market・Construction
Business
Sada Construction was founded in 1920 and is headquartered in Maebashi City, Gunma Prefecture. It is a general construction company listed on the TSE Standard Market. The Group consists of the Company and four consolidated subsidiaries, and specializes in the construction business, mainly civil engineering work (land development, tunnels, roads, bridges, etc.) and building construction work (factories, warehouses, educational facilities, government offices, etc.). Its main customers are government agencies (national and local governments, independent administrative institutions) and private companies (manufacturing, distribution, etc.), and it operates mainly in the Kanto and Tohoku regions, centered on Gunma Prefecture. Consolidated net sales for FY2026 (ending March 2026) were ¥36,769 million.
Business Model
A build-to-order business model that receives orders for civil engineering and construction work and recognizes completed construction revenue upon construction and delivery completion. Revenue recognition is based on the percentage-of-completion method. The order backlog (carried-forward construction volume) serves as a leading indicator of future sales, with the consolidated carried-forward construction volume at the end of FY2026 (ending March 2026) having accumulated to ¥34,409 million (up 15.2% year on year). The structure aims to manage construction costs and improve gross profit margin through collaboration with outside partner companies and more efficient materials procurement.
Company Strengths
Consolidated backlog at the end of FY2026 (ending March 2026) reached ¥34,409 million (up 15.2% year on year), with the building construction segment alone securing ¥24,880 million (up 34.8% year on year). On a non-consolidated basis, the backlog carried forward to the next period of ¥30,114 million is comparable to the completed construction revenue of ¥30,498 million for the current period, providing a high degree of certainty for the revenue base in the following period and beyond.
Non-consolidated completed construction revenue for FY2026 (ending March 2026) was roughly balanced between public sector at ¥15,783 million and private sector at ¥14,714 million. The company is concurrently securing large-scale public projects such as the new Annaka City hall, Urban Renaissance Agency, and Kanto Regional Development Bureau projects, alongside major private-sector projects such as Taiyo Yuden and Nippon Sanso, building an order portfolio resilient to economic cycles.
The gross profit margin for the civil engineering segment improved from 11.9% in the prior period to 12.9% in the current period, while the building construction segment improved from 8.3% to 9.8%. Thorough profitability management on large-scale projects, strengthened cooperation with external partner companies, and reduced subcontracting costs through more efficient material procurement and administrative processes were effective, and combined with the increase in revenue, consolidated gross profit reached ¥3,912 million, up 31.3% year on year.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥26,083 million in FY2024 (ending March 2024), then grew for two consecutive periods to ¥32,264 million (+23.7%) in FY2025 (ending March 2025) and ¥36,769 million (+14.0%) in FY2026 (ending March 2026). Operating profit recovered sharply from ¥200 million in FY2024 (ending March 2024) to ¥1,772 million in FY2026 (ending March 2026), the highest level in the past five fiscal periods. The recovery was driven by (1) an increase in completed construction revenue due to a rise in work carried over from the previous period, (2) improved profitability on large-scale projects, and (3) progress in negotiations to pass on price increases to customers. External factors such as stable public investment and a recovery in private-sector capital expenditure also provided tailwinds. On the other hand, for FY2027 (ending March 2027), the company forecasts revenue of ¥37,600 million (+2.3%) and operating profit of ¥1,500 million (-15.3%), an increase in revenue alongside a decline in profit, making the maintenance of the current high profit margin a key challenge.
Growth Strategy
Under its medium-term management plan (FY2025–2028), the company aims to achieve an ROE of 10% and a PBR of 1.0x, advancing efforts in profitability, capital policy, and governance enhancement.
The company continues to improve profitability on large-scale construction projects and negotiate price pass-through for cost increases. In FY2026 (ending March 2026), it achieved a gross profit margin of 10.6% and an operating margin of 4.8%. A decline in profit is forecast for FY2027 (ending March 2027), but the policy is to maintain profit margins through selective order-taking.
In FY2026 (ending March 2026), the company conducted share buybacks totaling ¥4,246 million, reducing shares outstanding from 15,521 thousand shares to 13,386 thousand shares. This improved net assets per share to ¥942.33 and net income per share to ¥71.57. The dividend was maintained at ¥60 per share (payout ratio of 83.8%).
In the building construction segment, the company has actively secured large-scale private-sector projects, resulting in a backlog of ¥24,880 million at the end of FY2026 (ending March 2026), up 34.8% year on year. Meanwhile, civil engineering orders declined 27.8% year on year, and a recovery in civil engineering is a key challenge toward achieving the FY2027 order intake target of ¥40,000 million.
The Board of Directors was renewed effective June 26, 2026. The heads of the Building Construction Division and the Civil Engineering Division were newly appointed as directors, strengthening coordination between business execution and management oversight. The company maintains a structure of three outside directors serving as Audit and Supervisory Committee members to ensure independence.
Last updated: July 19, 2026