TOA ROAD CORPORATION
1882・Prime Market・Construction
Construction Business
A construction business centered on paving works, accounting for approximately 61% of group sales as the core segment
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (external customers) | ¥74,298 million | ¥77,401 million | ↓ |
| Segment profit | ¥4,413 million | ¥3,816 million | ↑ |
| Orders received | ¥83,105 million | ¥70,468 million | ↑ |
| Order backlog carried forward | ¥36,864 million | ¥28,057 million | ↑ |
| Segment assets | ¥46,395 million | ¥50,683 million | ↓ |
| Segment profit margin (vs. completed construction revenue) | 5.9% | 4.9% | ↑ |
Business Details
Centered on paving works, the segment engages in construction work such as civil engineering, landscaping/greening, sports facility construction, ground improvement, river improvement, and specialized dredging, as well as demolition of structures and consulting services. Major customers include the Ministry of Land, Infrastructure, Transport and Tourism and other public-sector bodies as well as private-sector clients. Affiliated companies include Aizuken Sangyo Co., Ltd., Shikishimagumi Co., Ltd., and Kokudo Co., Ltd. Amid resilient public investment underpinned by disaster prevention/mitigation and national resilience initiatives, orders received expanded significantly, up 17.9% year on year, and the order backlog carried forward to the next period also increased 31.4%.
Recent Overview
Revenue declined but orders received and profit improved significantly, with the order backlog carried forward growing 31%, building up future sales
In FY2026 (ending March 2026), completed construction revenue decreased 4.0% year on year to ¥74,298 million, but segment profit improved, rising 15.6% year on year to ¥4,413 million. Orders received expanded significantly, up 17.9% year on year to ¥83,105 million, and the order backlog carried forward to the next period grew to ¥36,864 million (up 31.4% year on year). Both major work types expanded, with paving work orders received rising 14.9% year on year to ¥66,427 million and civil engineering work orders received rising 31.7% year on year to ¥16,677 million. Large-scale projects were secured, including the new apron construction work at Oita Airport (Ministry of Land, Infrastructure, Transport and Tourism) and the Oji Park redevelopment project (Kobe City government). An impairment loss of ¥141 million was recorded in the Construction Business segment.
Key Products
Growth Drivers
- Continued promotion of public investment aimed at disaster prevention/mitigation and national resilience
- Expanding demand for maintenance, repair, and life extension amid aging infrastructure
- Visibility into future sales from the order backlog carried forward of ¥36,864 million (up 31.4% year on year)
- Expansion of business areas through focus on growth areas such as PPP projects, overseas business, and sports facility business
- Business efficiency and labor savings through DX promotion, and social implementation of advanced technologies such as road-surface solar power generation and in-motion wireless charging technology
- Stabilization of construction execution capacity through established responses to the "2024 Problem" (overtime work regulations)
Risks
- Cost increases due to sustained high prices of construction materials (asphalt, etc.) and labor costs, and delays in passing costs through to prices
- Risk of deteriorating profitability due to intensifying order competition
- Uncertainty in material costs such as asphalt arising from fluctuations in crude oil and energy prices
- Sluggish private-sector investment and a deteriorating order environment due to geopolitical risks such as US tariff policy
- Ongoing impact on personnel recruitment and construction execution capacity from the "2024 Problem" (overtime work regulations)
- Risk of declining profitability of fixed assets, as evidenced by impairment losses recorded in the current period (¥141 million)
Last updated: July 10, 2026