Sata Construction Co., Ltd.
1826・Standard Market・Construction
Civil Engineering
Sada Corporation's core segment covering civil engineering construction in general
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (completed construction contracts revenue) | ¥11,213 million | ¥8,303 million | ↑ |
| Gross profit (segment profit) | ¥1,455 million | ¥988 million | ↑ |
| Gross profit margin | 12.9% | 11.9% | ↑ |
| Orders received | ¥9,323 million | ¥12,915 million | ↓ |
| Backlog (period-end) | ¥9,529 million | ¥11,418 million | ↓ |
Business Details
This segment receives orders for and executes a full range of civil engineering works for public-sector and private clients, centered on earthworks, tunneling, road, bridge, river, and erosion-control construction. Under the medium-term management plan, earthworks, tunneling, road, and bridge construction are positioned as focus areas, with the aim of improving market position and strengthening technical proposal capabilities through stable acquisition of public-sector projects. The company is also working to strengthen ties with external partner firms and reduce subcontracting costs. Competitive bidding is the primary order-acquisition method, and public-sector work accounts for more than half of sales.
Recent Overview
Sales and profit margin improved sharply as prior-period backlog was executed, while orders received fell 27.8% year on year
In the Civil Engineering segment for FY2026 (ending March 2026), sales rose sharply to ¥11,213 million (up 35.1% year on year), driven by an increase in backlog carried over from the prior period. Reductions in construction costs also contributed, with gross profit rising to ¥1,455 million (up 47.3% year on year) and gross profit margin improving to 12.9% (from 11.9% in the prior period). On the other hand, orders received fell to ¥9,323 million (down 27.8% year on year), and period-end backlog also declined to ¥9,529 million (down 16.5% year on year), suggesting a possible reduced contribution to sales from the next period onward.
Key Products
Growth Drivers
- Continued securing of public-sector projects backed by stable public investment (public-sector sales of ¥7,577 million in FY2026, ending March 2026)
- Improvement in gross profit margin (from 11.9% in the prior period to 12.9% in the current period) through improved profitability on large-scale projects and reduction of construction costs
- Focus on earthwork/land development, tunnel, road, and bridge construction under the medium-term management plan, along with strengthened technical proposal capabilities
- Reduction in subcontracting costs through strengthened cooperation with external partner firms and greater efficiency in materials procurement and administrative work
- Improved profitability through progress in negotiations to pass on price increases to customers
Risks
- Downward pressure on sales and profit from the next period onward due to a sharp decline in orders received (down 27.8% year on year to ¥9,323 million) and a decrease in backlog (down 16.5% year on year)
- Risk of rising construction costs due to soaring construction material prices and tight labor supply-demand conditions
- Constraints on construction capacity due to compliance with overtime work caps in the construction industry
- Intensifying order-price competition associated with the high proportion of competitive bidding
- Risk of construction losses due to estimation errors in total construction costs (arising from weather, construction conditions, materials/equipment prices, and work efficiency fluctuations)
- Persistently high energy and materials prices stemming from geopolitical risks such as the situation in the Middle East
Last updated: June 24, 2026