Nankai Tatsumura Construction Co., Ltd.

Business Details

This is the core segment, encompassing Building Construction, Civil Engineering Works, and Electrical Works and Others across the full range of construction operations. Serving both public and private sector clients, revenue declined in FY2026 (ending March 2026) due to the reaction from large-scale projects that progressed in the prior period; however, segment profit increased as profit improvement measures for existing projects proved effective. The backlog carried forward to the next period remained at a high level of ¥86,552 million, up 18.9% from the end of the prior period, providing a solid foundation for future revenue.

Recent Overview

Revenue declined due to the reaction from large-scale projects in the prior period, but profit increased owing to profit improvement measures

Revenue in the Construction Business for FY2026 (ending March 2026) decreased 13.5% year on year to ¥45,619 million, due in part to the impact of large-scale projects that had progressed in the prior period. On the other hand, segment profit increased 18.8% year on year to ¥2,837 million as profit improvement measures for existing projects proved effective. In terms of order composition, public-sector civil engineering orders expanded sharply, up 355.4% year on year to ¥10,514 million, and the backlog carried forward to the next period has built up to a record high level of ¥86,552 million (up 18.9% from the end of the prior period).

Key Products

Growth Drivers

• Securing a foundation for future revenue through a high level of backlog of ¥86,552 million carried forward to the next period (up 18.9% from the end of the prior period)
• Diversification of the order portfolio through the sharp expansion of public-sector civil engineering orders received (¥10,514 million in FY2026 (ending March 2026), up 355.4% year on year)
• Improvement in segment profit margin (from 4.5% to 6.2%) through the implementation of profit improvement measures for existing projects
• Establishment of a profit-generating process based on the three-year management plan and productivity improvement through the promotion of DX
• Stable order backlog in building construction, including the private-sector building construction backlog of ¥63,211 million (up 6.8% from the end of the prior period)

Risks

• Impact on project profitability from persistently high construction material prices
• Constraints on construction capacity due to chronic shortage of skilled construction workers and an aging engineer workforce
• Period-to-period revenue volatility due to the timing of progress on large-scale projects (revenue declined 13.5% year on year in FY2026 (ending March 2026))
• Risk of a shift in order composition due to a decline in private-sector building construction orders received (down 33.7% year on year to ¥34,965 million)
• Decline in construction investment due to a deteriorating macro environment, including inflation, US trade policy, and geopolitical risks