Mori-Gumi Co.,Ltd.
1853・Standard Market・Construction
Construction Business
Mori-gumi's core segment, handling civil engineering and building construction overall and accounting for approximately 99% of net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (net sales) | ¥27,707 million | ¥28,770 million | ↓ |
| Segment profit | ¥2,651 million | ¥2,230 million | ↑ |
| Construction orders received | ¥29,488 million | ¥25,522 million | ↑ |
| Backlog carried forward to next period | ¥44,105 million | ¥42,324 million | ↑ |
| Segment assets | ¥15,993 million | ¥16,405 million | ↓ |
| Gross profit on completed construction | ¥2,997 million | ¥2,587 million | ↑ |
Business Details
A construction business centered on civil engineering works (public infrastructure, roads, sewerage, etc.) and building construction (commercial facilities, condominiums, factories, etc.). Serves both public and private-sector clients, with operations centered on the Kansai, Kanto, and Chubu regions. In FY2026 (ending March 2026), the segment achieved completed construction revenue of ¥27,707 million and segment profit of ¥2,651 million. Profitability improved significantly due to thorough selective order-taking and strengthened cost management. Revenue recognition is primarily based on transfer of goods over a period of time (percentage-of-completion basis).
Recent Overview
Although revenue declined, segment profit rose sharply by 18.9% year on year thanks to selective order-taking and strengthened cost management.
In FY2026 (ending March 2026), completed construction revenue declined 3.7% year on year to ¥27,707 million, but thorough selective order-taking and strengthened cost management drove gross profit on completed construction up 15.9% year on year to ¥2,997 million and segment profit up 18.9% year on year to ¥2,651 million, resulting in a significant improvement in profitability. Orders received were strong at ¥29,488 million (up 15.5% year on year), with civil engineering orders surging to ¥13,816 million (up 45.4% year on year). The proportion of public-sector work rose from 37.2% to 56.7%. Backlog carried forward to the next period reached a record ¥44,105 million (up 4.2% year on year), expanding the foundation for future revenue recognition.
Key Products
Growth Drivers
- Sharp increase in civil engineering orders: orders received in FY2026 (ending March 2026) rose significantly to ¥13,816 million (up 45.4% year on year), driven by public-sector works
- Ample backlog carried forward: backlog at the end of FY2026 (ending March 2026) reached a record ¥44,105 million (civil engineering ¥19,362 million, building construction ¥24,742 million)
- Continued firm private-sector construction demand in non-residential sectors such as logistics facilities and data centers
- Improved profitability through thorough selective order-taking and strengthened cost management: gross profit margin on completed construction rose from 9.0% in the prior period to 10.8% in the current period
- Resilient trend in public construction investment: orders from public-sector works surged to ¥16,720 million (up 76.2% year on year), diversifying the order composition
Risks
- Risk of rising construction costs due to persistently high construction material prices and rising energy costs
- Risk of soaring labor costs and construction delays due to a severe shortage of construction engineers and skilled workers
- Uncertainty in estimating total construction costs (risk of execution budget revisions associated with percentage-of-completion revenue recognition)
- In the FY2027 (ending March 2027) earnings forecast, revenue is projected to decline 3.0% year on year to ¥27,200 million, with uncertainty regarding the pace at which backlog converts into completed construction revenue
- Risk of downside pressure on private-sector capital expenditure due to concerns over supply shortages of petroleum-related materials and a slowdown in overseas economies
Last updated: June 25, 2026