OKUMURA CORPORATION
1833・Prime Market・Construction
Civil Engineering Business
Okumura Corporation's core segment handling civil engineering works for public and private clients
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (FY2026, ending March 2026) | ¥115,248 million | ¥99,024 million | ↑ |
| Operating profit (FY2026, ending March 2026) | ¥10,103 million | ¥4,722 million | ↑ |
| Operating margin (FY2026, ending March 2026) | 8.8% | 4.8% | ↑ |
| New orders received (FY2026, ending March 2026) | ¥132,273 million | ¥192,888 million | ↓ |
Business Details
This segment covers civil engineering and infrastructure construction work in general. Domestic public-sector orders account for approximately 58% of net sales (¥66,777 million), domestic private-sector orders for approximately 32% (¥37,152 million), and overseas orders for approximately 10% (¥11,318 million). Domestic infrastructure works (tunnels, railways, roads, etc.) form the core, while the segment also handles overseas construction projects such as in Taiwan. In FY2026 (ending March 2026), profitability improved on carried-over projects from the prior period due to the acquisition of additional work and cost reductions, resulting in a substantial improvement in gross profit margin.
Recent Overview
Substantial recovery with net sales up 16.4% and operating profit up 114.0%, driven by improved profitability on carried-over projects
In the Civil Engineering Business for FY2026 (ending March 2026), profitability on carried-over projects from the prior period improved due to the acquisition of additional work and cost reductions, leading to an improvement in gross profit margin. Net sales rose 16.4% year on year to ¥115,248 million, and operating profit surged 114.0% year on year to ¥10,103 million, marking a substantial recovery. On the other hand, because multiple large-scale projects were ordered in the prior period, the volume of carried-over orders remained at a high level; taking construction capacity into account, new orders received were limited to ¥132,273 million, down 31.4% year on year.
Key Products
Growth Drivers
- A stable revenue base supported by a high level of carried-over projects from the prior period (continued execution of the prior period's ¥192,888 million in new orders received)
- Improved profitability through the acquisition of additional work and cost reductions (operating margin recovered sharply to 8.8% in FY2026 (ending March 2026))
- Steady domestic construction market conditions with resilient public and private construction investment
- Expansion of large-scale overseas projects (overseas net sales of ¥11,318 million in FY2026 (ending March 2026), up 73.7% year on year)
- Growth in orders for private-sector civil engineering works, supported by strong private capital expenditure appetite
Risks
- Risk of downward pressure on future net sales due to a substantial decline in new orders received (¥132,273 million in FY2026 (ending March 2026), down 31.4% year on year)
- Continued upward pressure on construction costs due to persistently high materials and equipment prices and tight labor supply-demand conditions
- Risk of recording provisions for construction losses due to soaring construction materials and labor costs on certain large-scale domestic projects
- Risk of recurrence of inappropriate cost management issues (cost reallocation)
- Foreign exchange fluctuation risk and country risk associated with overseas construction works
- Risk that large year-to-year variability in new orders received, combined with adjustments to construction capacity, may cause fluctuations in business performance
Last updated: June 19, 2026