Nankai Tatsumura Construction Co., Ltd.
1850・Standard Market・Construction
Business
Nankai Tatsumura Construction was founded in 1923 and marked its 100th anniversary in 2023. It is a mid-tier general contractor whose largest shareholder is its parent company, Nankai Electric Railway (now NANKAI Co., Ltd.). The company operates a Construction Business (Building Construction, Civil Engineering Works, and Electrical Works) and a Real Estate Business. The Construction Business accounts for more than 99% of net sales, covering a wide range of project types including logistics facilities, condominiums, hospitals, schools, and public infrastructure. In addition to private developers and business corporations as its main customers, orders from the parent company group (33.2% of completed construction value in FY2026 (ending March 2026)) form a stable order base. The company is listed on the Standard Market of the Tokyo Stock Exchange and operates as a group including two consolidated subsidiaries.
Business Model
A build-to-order business model in which the principal revenue source is construction contracting from order receipt through completion. Building Construction (private condominiums, logistics facilities, medical facilities, etc.) accounts for the majority of sales, complemented by Civil Engineering Works and electrical works. While specially designated orders from the parent company group serve as a stable revenue base, the company also diversifies its order portfolio by winning private-sector and government contracts through competitive bidding. The backlog of orders carried forward to the next period pre-secures future sales, and as of the end of FY2026 (ending March 2026), the company held a backlog of ¥85,992 million.
Company Strengths
The order backlog to be carried forward at the end of FY2026 (ending March 2026) stood at ¥85,992 million, up 18.6% from ¥72,499 million at the end of the previous fiscal year. This includes long-term, large-scale projects such as the Osaka IR project (scheduled for completion in December 2029) and the Yokohama City sewerage improvement works (scheduled for completion in March 2032), securing a multi-year revenue base. This buildup of order backlog stems from customer relationships and construction track record accumulated over time, which are difficult to replicate in a short period.
Orders from the Nankai Electric Railway (now NANKAI Co., Ltd.) group accounted for 33.2% (¥14,591 million) of completed construction revenue in FY2026 (ending March 2026), forming a stable order base. Since the third-party allotment capital increase in 2001, the continuous business relationship based on capital ties with the parent company represents a structural advantage that competitors cannot easily replicate in a short period.
In FY2026 (ending March 2026), revenue declined 13.5% year on year to ¥45,797 million, while operating profit increased 19.4% year on year to ¥2,842 million. Through profitability improvement measures for projects on hand, the Construction Business segment profit margin improved from 4.5% in the previous fiscal year to 6.2%. This demonstrates a proven ability to manage project profitability and generate profit independent of revenue scale.
ENVALITH's Perspective
Performance Trend
Revenue declined sharply from ¥52,945 million in FY2025 (ended March 2025) to ¥45,797 million in FY2026 (ended March 2026), down 13.5% year on year. The main cause was a reaction to the progress of large-scale construction projects in the prior period. On the profitability side, however, gross profit margin on completed construction contracts improved from 9.0% to 11.3%, reflecting the success of profitability improvement measures for the order backlog. Operating profit of ¥2,842 million (up 19.4% year on year) and net income of ¥2,093 million (up 22.1% year on year) both marked new highs over the past five fiscal years. Amid an external environment of persistently high construction material prices and continued labor shortages, selective order-taking focused on profit generation contributed to the improvement in profitability. For the next fiscal year (FY2027, ending March 2027), revenue is expected to recover to ¥52,700 million as the carried-over order backlog is executed, but operating profit is forecast to decline to ¥2,500 million (down 12.0% year on year).
Growth Strategy
Second year of the three-year management plan: aiming for sustainable corporate value enhancement through establishing a profit-generation process, DX, and human resource development
The company is pursuing selective order-taking that emphasizes profitability, along with measures to improve profits on projects in hand. In FY2026 (ended March 2026), it achieved a gross profit margin on completed construction contracts of 11.3% (up from 9.0% in the previous fiscal year) and an operating margin of 6.2% despite a decline in revenue. The company will continue to establish a profit-generation process toward the final year of the three-year plan.
The company is implementing operational reforms spanning from order receipt to project completion, strengthening its competitive advantage in the Construction Business. Through DX promotion aimed at improving work efficiency, it is simultaneously addressing the industry-wide challenge of chronic labor shortages and enhancing profitability.
As the top priority in the Construction Business, the company is promoting company-wide strategic recruitment activities. Through improving the effectiveness of its human resource development system, "NT Academy", and measures to enhance employee engagement, it is addressing the structural industry issue of a declining and aging pool of engineers and skilled workers.
The company aims to achieve sustained enhancement of corporate value by pursuing both improved profitability and maintained financial soundness. At the end of FY2026 (ended March 2026), it achieved an equity ratio of 56.2% and ROE of 11.3%. Dividends are set at ¥8 per share (with the same amount forecast for FY2027, ending March 2027), continuing a stable dividend policy; however, with a payout ratio of 11.0%, there remains significant room for shareholder returns.
Last updated: July 19, 2026