OHMORI CO.,LTD.
1844・Standard Market・Construction
Construction Business
Core segment of Taisei Kogyo centered on water and sewerage construction works in Tokyo
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative Q3, FY2026 (ending July 2026)) | ¥4,220 million | ¥3,576 million (same period of prior year) | ↑ |
| Segment profit (cumulative Q3, FY2026 (ending July 2026)) | ¥334 million | ¥472 million (same period of prior year) | ↓ |
| Orders received (cumulative Q3, FY2026 (ending July 2026)) | ¥2,948 million | ¥2,543 million (same period of prior year) | ↑ |
| Net sales (full year, FY2025 (ended July 2025)) | ¥4,815 million | — | — |
| Segment profit (full year, FY2025 (ended July 2025)) | ¥504 million | — | — |
| Orders received (full year, FY2025 (ended July 2025)) | ¥5,916 million | — | — |
| Backlog of construction work (as of July 31, 2025) | ¥6,165 million | — | — |
Business Details
The Company and its subsidiaries (Iguchi Construction Co., Ltd. and Minato Civil Co., Ltd.) undertake the execution, supervision, and contracting of civil engineering works. Its main customers are the Tokyo Bureau of Sewerage and the Tokyo Waterworks Bureau, resulting in an extremely high degree of dependence on government agencies. Backed by resilient public investment driven by disaster prevention/mitigation and national resilience policies, the segment continues to build up orders centered on aging infrastructure countermeasures, flood control works, and earthquake disaster prevention works. This is the core business, accounting for approximately 76% of consolidated group sales.
Recent Overview
Net sales rose significantly by 18.0% year on year, but profit declined sharply by 29.2% as profitability deteriorated
In the cumulative nine months of FY2026 (ending July 2026) (August 2025 to April 2026), net sales in the Construction Business achieved substantial growth to ¥4,220 million (up 18.0% year on year), while segment profit (operating profit) declined sharply to ¥334 million (down 29.2% year on year). Orders received continued to expand to ¥2,948 million (up 15.9% year on year), but rising construction costs and the completion of lower-profitability projects appear to have squeezed profit. The Company is focusing on reducing construction costs, shortening construction periods, increasing construction management personnel, and developing human resources.
Key Products
Growth Drivers
- Continued resilient public investment based on disaster prevention/mitigation and national resilience policies
- Continued ordering of aging infrastructure countermeasures, flood control works, and earthquake disaster prevention works for water and sewerage facilities in Tokyo
- Accumulation of construction backlog driven by expansion in orders received (up 15.9% year on year in cumulative Q3)
- Strengthening of construction capacity through increased construction management personnel and human resource development
- Policy of expanding the business base through M&A and bringing quality construction companies into the group
Risks
- Constraints on construction capacity and intensifying order competition due to chronic shortage of construction workers
- Rising construction costs and declining profitability due to persistently high construction material prices and labor costs (profit margin declined sharply from 13.2% in the same period of the prior year to 7.9% in cumulative Q3)
- Customer concentration risk due to high dependence on construction ordered by the Tokyo Metropolitan Government (government agency ratio nearly 100%)
- Decrease in gross profit on completed construction contracts due to a rising proportion of low-profitability existing facility rehabilitation work in the backlog
- Fluctuations in the timing of sales recognition due to construction schedule shifts, construction changes, and competition over construction sites with other companies
Last updated: October 28, 2025