Mori-Gumi Co.,Ltd.
1853・Standard Market・Construction
Business
Morigumi Co., Ltd. is a mid-tier general contractor founded in 1934. Its construction business, covering civil engineering and building works broadly, accounts for approximately 99% of net sales, and the company operates on the dual pillars of public-sector projects (expressways, infrastructure, etc.) and private-sector projects (logistics facilities, condominiums, commercial facilities, etc.). Major clients include leading companies such as West Nippon Expressway Company Limited, Hankyu Hanshin Properties Corp., Nomura Real Estate Development Co., Ltd., and Mitsui Fudosan Residential Co., Ltd. Since 2016, the company has been an affiliate of Asahi Kasei Corporation and Asahi Kasei Homes Corporation, and is listed on the Standard Market of the Tokyo Stock Exchange. In October 2025, it transferred its unprofitable crushed stone business, aiming to concentrate management resources on the construction business.
Business Model
An order-based business model in which construction contracts are signed for each project, and completed construction revenue is recognized based on the percentage-of-completion method according to progress. Profitability is ensured through rigorous selective order-taking and cost control via execution budget management. The carried-forward construction order balance of ¥44,105 million for the next fiscal period (as of the end of FY2026, ending March 2026) enhances visibility into future sales, reflecting a structure that steadily accumulates orders from both public and private sector clients.
Company Strengths
The order backlog carried forward to the next fiscal period as of the end of FY2026 (ending March 2026) reached a record-high level of ¥44,105 million (civil engineering ¥19,362 million, building construction ¥24,742 million). This includes large-scale projects scheduled for completion in 2028 (Hankyu Hanshin Properties Corp. Yotsuya 3-chome Project, Central Nippon Expressway Company Limited Kisei Expressway, etc.), providing high visibility of revenue over multiple years.
As a result of promoting thorough selective order-taking and improving construction profitability through negotiations on design changes and the execution of additional change contracts, the gross profit margin on completed construction contracts improved from 9.0% in the previous fiscal period to 10.8% in the current fiscal period. Construction business segment profit reached ¥2,651 million (up 18.9% year on year), expanding profit even as sales declined.
The equity ratio as of the end of FY2026 (ending March 2026) rose to 61.5% (from 58.9% in the previous fiscal period), and interest-bearing debt was reduced to zero. Cash and cash equivalents stood at a healthy ¥6,394 million (up 43.0% year on year), and the interest coverage ratio was 182.2 times. The company practices a financial policy of principally covering working capital and capital expenditure needs with its own funds.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥24,620 million in FY2023 and expanded to ¥29,454 million by FY2025, but declined again to ¥28,040 million in FY2026 due to the transfer of the crushed stone business (reducing revenue contribution) and a decrease in completed construction revenue. Meanwhile, operating profit reached ¥1,335 million in FY2026, marking the highest level in five periods, with the operating margin improving to 4.8% (from 3.7% in the previous period). In terms of market conditions, solid demand in non-residential sectors such as logistics facilities and data centers supported profitability in the construction business. For the next period, FY2027 (ending March 2027), revenue and operating profit are forecast to decline to ¥27,200 million and ¥1,160 million, respectively, with external factors such as rising material prices and labor shortages expected to continue capping profit upside.
Growth Strategy
Pursuing qualitative improvement of its earnings base through concentration on the construction business, utilization of ICT, and expansion of public-sector orders.
The manufacturing and sales business of the Namase Quarry was transferred to Nankai Jari Co., Ltd. effective October 1, 2025. By divesting the unprofitable segment, the company achieved concentration of human resources and capital into civil engineering and building construction works. Recorded a gain on business transfer of ¥42 million.
The company is promoting selective order-taking that prioritizes profitability over order volume. In FY2026 (ended March 2026), the gross profit margin on completed construction contracts rose to 10.8% (from 9.0% in the previous fiscal year), and the operating profit margin also improved to 4.8% (from 3.7% in the previous fiscal year). The medium-term target of ¥1,160 million in operating profit has already been set as the forecast for the next fiscal year.
The company is promoting consolidation of its business areas into the Kanto, Kansai, and Chubu regions. In FY2026 (ended March 2026), civil engineering order intake surged to ¥13,816 million (up 45.4% year on year), with the public-sector construction ratio rising from 37.2% to 56.7%. Secured a carried-forward civil engineering construction backlog of ¥19,362 million.
The company is actively working to utilize ICT technology and improve productivity, promoting environmentally conscious smart construction management with a focus on high quality and high performance. Software investment surged from ¥16 million in the previous fiscal year to ¥283 million, indicating that digital investment is now in full swing.
The company has set a target of reducing Scope 1 and Scope 2 greenhouse gas emissions by 42% by FY2030 compared to FY2021 levels. It is promoting environmentally conscious construction practices at construction sites and aims to enhance corporate value through ESG initiatives.
Last updated: July 19, 2026