Kumagai Gumi Co.,Ltd.
1861・Prime Market・Construction
Civil Engineering Business
Kumagai Gumi's core segment responsible for civil engineering package works including erosion/flood control, roads, and railways
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Completed Construction Revenue) | ¥115,978 million | ¥105,107 million | ↑ |
| Operating Profit | ¥6,053 million | ¥6,940 million | ↓ |
| Operating Margin | 5.2% | 6.6% | ↓ |
| Orders Received (Non-consolidated) | ¥112,527 million | ¥110,971 million | ↑ |
| Order Backlog Carried Forward (Non-consolidated, Civil Engineering Total) | ¥203,538 million | ¥206,822 million | ↓ |
| Depreciation | ¥382 million | ¥322 million | ↑ |
Business Details
Provides survey, planning, design, construction, and supervision as well as comprehensive engineering for civil engineering package works including erosion control and flood control, railways, and roads. Public-sector clients account for more than half of revenue, with the segment focusing on four priority areas: large-scale infrastructure renewal, disaster prevention and mitigation, renewable energy, and resource circulation. In FY2026 (ending March 2026), revenue expanded 10.3% year on year to ¥115,978 million, while operating profit declined 12.8% year on year to ¥6,053 million.
Recent Overview
Revenue rose 10.3% year on year, but operating profit declined 12.8% amid lower profitability
In the Civil Engineering business (before intersegment elimination) for FY2026 (ending March 2026), revenue expanded 10.3% year on year to ¥115,978 million. Meanwhile, operating profit declined 12.8% year on year to ¥6,053 million, and operating margin fell to approximately 5.2% from 6.6% in the prior period. Non-consolidated orders received remained solid at ¥112,527 million (up 1.4% year on year). Major orders received included the Tomei Expressway deck slab replacement works for Central Nippon Expressway, the Hyper-Kamiokande project for the University of Tokyo, the Higashi-Ojima trunk line works for the Tokyo Metropolitan Government, and the Gamo Power Station dam renovation works for Hokuriku Electric Power.
Key Products
Growth Drivers
- Significant expansion of public investment in disaster prevention/mitigation and renewal of aging infrastructure as the five-year "First National Resilience Implementation Medium-Term Plan" begins in earnest from FY2026
- Continued receipt of large public-sector orders such as specific expressway renewal works and Shinkansen-related works (non-consolidated order intake up 1.4% year on year)
- Capture of new demand in the renewable energy field (hydropower plant renovation, wind power-related projects)
- Improved pass-through of price escalation into contract amounts and securing of appropriate profits, aided by legal progress on the use of price escalation clauses
- Steady progress in revenue absorption backed by the order backlog carried forward at the start of the period (¥203,538 million)
Risks
- Risk of profitability deterioration due to persistently high material and labor costs (operating margin declined from 6.6% to approximately 5.2% year on year)
- Worsening labor shortages and increased costs to comply with working hour regulations
- Risk of reduced orders in the production sector due to indirect effects of U.S. tariff measures causing automakers and semiconductor-related manufacturers to hold back capital investment
- Risk of rising construction material prices, supply chain disruption, and higher logistics costs stemming from geopolitical risks (Ukraine, Middle East situation)
- Order backlog carried forward declined 1.6% year on year (to ¥203,538 million), somewhat reducing future revenue absorption capacity
Last updated: June 25, 2026