YAHAGI CONSTRUCTION CO.,LTD.
1870・Prime Market・Construction
Building Construction Segment
Yahagi Construction's largest segment, centered on Building Construction Contracting.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (including internal sales) | ¥113,365 million | ¥89,327 million | ↑ |
| Revenue from External Customers | ¥112,494 million | ¥87,214 million | ↑ |
| Segment Profit | ¥8,535 million | ¥2,130 million | ↑ |
| Segment Profit Margin | 7.5% | 2.4% | ↑ |
| Orders Received (Building Construction) | ¥105,850 million | ¥102,960 million (derived from the reported 2.8% year-on-year increase) | ↑ |
Business Details
This segment comprises overall building construction work, including seismic retrofitting construction, as well as the Construction Materials Sales business. Yahagi Construction Co., Ltd. handles building construction contracting and related businesses, while Yahagi Building & Life Co., Ltd. and Hokuwa Construction Co., Ltd. provide building construction services, and Techno Support Co., Ltd. provides Construction Materials Sales and Seismic Retrofitting Services. The company continuously receives orders for station building construction and related work from Nagoya Railroad Co., Ltd., while large-scale logistics facility and office building construction from major developers such as Nomura Real Estate Co., Ltd. constitute a major source of revenue. The segment has a high ratio of orders received through the negotiated (sole-source) method and maintains a stable business model based on long-term relationships with customers.
Recent Overview
Revenue and profit increased substantially due to progress on large-scale logistics facility construction reaching its peak period.
In the Building Construction Segment for FY2026 (ending March 2026), several large-scale projects centered on logistics facility construction reached their peak construction period during the fiscal year and progressed smoothly, resulting in revenue from external customers of ¥112,494 million (up 28.9% year on year). Segment profit improved substantially to ¥8,535 million from ¥2,130 million in the prior period, with the profit margin rising markedly from 2.4% to 7.5%. Orders received totaled ¥105,850 million (up 2.8% year on year), reflecting orders for multiple large-scale condominium projects. As a subsequent event, effective April 1, 2026, Yahagi Building & Life Co., Ltd.'s Condominium Management Business was transferred to Meitetsu Community Life Co., Ltd. through a company split, which will affect the segment's business composition going forward.
Key Products
Growth Drivers
- Increase in completed construction revenue due to progress on large-scale logistics facility and office building construction (Building construction revenue in FY2026 (ending March 2026) was ¥112,339 million, up 29.8% year on year)
- Securing a stable order backlog through continuous large-scale construction orders from major developers such as Nomura Real Estate Co., Ltd. and Mitsui Fudosan Co., Ltd.
- Maintaining the revenue base for future periods through orders for multiple large-scale condominium projects (orders received of ¥105,850 million, up 2.8% year on year)
- Substantial improvement in segment profit margin (from 2.4% to 7.5%) due to improved profitability on construction work and increases in contract amounts through change negotiations
- Stability of the customer base maintaining a high ratio of negotiated (sole-source) orders and continuity of orders based on long-term relationships
- Sustained high level of construction demand supported by resilient private capital investment and logistics facility demand, as well as corporate capital investment for DX promotion and decarbonization measures
Risks
- Rising labor costs due to tight labor supply-demand conditions and increased costs to comply with overtime work limit regulations under the amended Labor Standards Act
- Risk of fluctuation in total construction costs due to persistently high material prices (steel products, petroleum products, etc.) and the possibility of recording provisions for construction contract losses
- Difficulty securing supply capacity and construction personnel due to a shortage of workers in the construction industry (a medium- to long-term issue)
- Risk of revenue concentration with specific customers (dependence on large-scale construction projects for major developers)
- In the next fiscal year (FY2027, ending March 2027), the proportion of projects in their early construction stages is expected to increase, and a decline in revenue and profit is anticipated for the Building Construction Segment
- Risk of fluctuations in revenue and costs due to contract changes and changes in consideration arising from changes in construction methods or scope
- Change in segment composition due to the transfer of Yahagi Building & Life Co., Ltd.'s Condominium Management Business (effective April 1, 2026)
Last updated: June 23, 2026