OHMORI CO.,LTD.
1844・Standard Market・Construction
Business
Taisei Kogyo Co., Ltd. was founded in 1967 and has over half a century of track record as a specialist contractor for water supply and sewerage works in Tokyo. The group, which includes three consolidated subsidiaries (Tokyo Telecom Engineering Co., Ltd., Iguchi Construction Co., Ltd., and Minato Civil Co., Ltd.), operates four segments centered on the construction business (approximately 75% of sales composition): real estate business (leasing, sales, and closet rental), OLY business (road-covering equipment leasing and steel frame processing), and telecommunications-related business (maintenance of NTT in-station communication equipment). Its major customers are the Tokyo Metropolitan Government Bureau of Sewerage (41.2% of sales) and the Tokyo Metropolitan Government Bureau of Waterworks (13.9% of sales), and demand for maintaining and renewing public infrastructure serves as a stable revenue base.
Business Model
In the construction business, the company receives orders for and executes water and sewage system reconstruction and aging-infrastructure countermeasure work ordered by the Tokyo Metropolitan Government, earning revenue from completed construction work and profit from design-change-related cost increases. In the real estate business, stable rental income from owned leased properties is combined with gains on property sales. The OLY business supplements earnings through equipment leasing for the company's proprietary patented construction method "OLY" and steel frame processing at the Ibaraki plant. The telecommunications-related business secures recurring contract-based revenue from maintenance and management of NTT in-station equipment. The target metric is "operating margin of 7% or higher," and in FY2025 (ended July 2025), the company significantly exceeded this target at 12.18%.
Company Strengths
Since its founding in 1967, the company has continued to operate as a specialist contractor for water and sewerage construction, primarily serving the Tokyo Metropolitan Government's Bureau of Sewerage and Bureau of Waterworks. In FY2025 (ended July 2025), sales to the Bureau of Sewerage totaled ¥2,661 million (41.2% of net sales) and sales to the Bureau of Waterworks totaled ¥895 million (13.9% of net sales), reflecting a robust business relationship with public-sector clients.
Under the "ACTION PLAN 2022," the company targeted an operating margin in the 5% range, but actual results significantly exceeded this target for three consecutive fiscal periods: 7.46% in the 57th fiscal period, 10.40% in the 58th, and 12.18% in the 59th. In FY2025 (ended July 2025), operating profit was ¥785 million (up 26.2% year on year) and net income attributable to owners of the parent was ¥519 million (up 25.2% year on year), indicating accelerating profit growth.
As of July 31, 2025, the backlog of construction contracts stood at ¥6,165 million, up 16.3% from ¥5,300 million at the end of the previous fiscal period. Furthermore, order intake for the interim period ended January 2026 surged 77.3% year on year, providing numerical confirmation of an accumulating pipeline of completed construction revenue for subsequent periods.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, the company maintained a growth trend in both sales and profit; however, in the cumulative nine months of Q3 FY2026 (ending July 2026), while sales continued to grow at ¥5,556 million (+15.2% year-on-year), profit metrics fell below the prior-year period, with operating profit of ¥647 million (-9.5% YoY), ordinary profit of ¥614 million (-11.8% YoY), and quarterly net profit of ¥436 million (-4.8% YoY). The main external factor was rising material prices and labor costs, which squeezed gross profit on completed construction contracts in the construction business (down ¥118 million YoY). The real estate business also saw both sales and profit decline YoY. Meanwhile, the OLY business saw profit expand sharply, up 147.6% YoY, and the telecommunications-related business maintained increases in both sales and profit. The full-year forecast (sales of ¥7,319 million, operating profit of ¥731 million) remains unchanged, and the company expects to end the fiscal year with increased sales but decreased profit (operating profit down 6.8%) compared to the previous fiscal year.
Growth Strategy
Through construction M&A, real estate expansion, and OLY regional expansion, the company aims to achieve net sales of ¥8,433 million and an operating margin of 9.57% under the 3-year plan
Focus on securing new construction orders and increasing/developing construction management personnel. Cumulative order intake for the third quarter expanded to ¥2,948 million (up 15.9% year on year), and the accumulation of the order backlog is enhancing sales visibility for subsequent periods. The company also maintains a policy of bringing quality construction companies into the group through M&A and other means.
Focus on improving occupancy rates of owned rental properties, promoting property sales, and acquiring new high-yield rental properties. However, for the cumulative third quarter of FY2026 (ending July 2026), net sales were ¥415 million (down 16.2% year on year) and segment profit was ¥67 million (down 39.0% year on year), falling below the same period of the previous year, making revenue recovery a challenge.
Promoting the acquisition of new customers in the Kanto and southward areas based at the Nagoya OLY sales office, as well as encouraging the adoption of OLY construction method design by public agencies. Cumulative segment profit for the third quarter of FY2026 (ending July 2026) expanded sharply to ¥172 million (up 147.6% year on year), reflecting tangible results from regional expansion.
Promoting the acquisition of new management projects in the maintenance and management of NTT in-station communication equipment, and expanding the order intake area into new work types and processes. Cumulative results for the third quarter of FY2026 (ending July 2026) showed net sales of ¥363 million (up 9.7% year on year) and segment profit of ¥74 million (up 16.4% year on year), continuing stable growth.
Last updated: July 17, 2026