WAKACHIKU CONSTRUCTION CO.,LTD.
1888・Prime Market・Construction
Business
Wakachiku Construction was founded in 1890 with the aim of constructing Wakamatsu Port in Kitakyushu, and has since grown into a comprehensive construction company. It operates three divisions—marine civil engineering (ports and harbors, revetments, dredging), land civil engineering, and building construction—serving a broad customer base ranging from government bodies such as the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of Defense to private companies. The group comprises 9 consolidated subsidiaries and 1 affiliated company, with the construction business accounting for over 98% of net sales. Consolidated net sales for FY2026 (ending March 2026) were ¥104,748 million. The company is listed on the Prime Market of the Tokyo Stock Exchange. In February 2026, it concluded a capital and business alliance agreement with Aso Corporation, becoming a consolidated subsidiary of the Aso Group.
Business Model
As a build-to-order construction company, the company receives orders through competitive bidding and negotiated contracts, recognizing revenue according to the percentage of completion. With a public-sector ratio of 61.9% (completed construction revenue for FY2025), the company has high dependence on public investment, providing a certain degree of stability against economic fluctuations. Subsidiaries such as Shinso Construction and Daimaru Bouon provide construction support, ensuring construction capacity across the group as a whole. Real estate operations (leasing and sales) and vessel management services serve as complementary revenue sources.
Company Strengths
Backed by the accumulation of marine civil engineering expertise dating back to the construction of Wakamatsu Port in 1890, the company holds proprietary technologies such as unmanned caisson installation, dredging construction management, and unmanned block installation. Marine civil engineering orders received in FY2026 (ending March 2026) expanded sharply to ¥40,102 million (up 40.6% year on year), with the technology and track record that competitors cannot easily replicate in a short period underpinning the company's order-taking capability.
Order backlog stood at ¥149,289 million (up 22.8% year on year) as of the end of March 2026. This is diversified across building construction (¥75,034 million), land civil engineering (¥46,150 million), and marine civil engineering (¥28,104 million), with multi-year order backlog secured including a large-scale private-sector project scheduled for completion in December 2027 and a project for Nippon Steel scheduled for completion in 2029.
In terms of completed construction revenue for FY2025, the company maintains both public and private sector axes, with a 61.9% share from public agencies and 38.1% from the private sector. Major clients include the Ministry of Land, Infrastructure, Transport and Tourism (¥21,453 million, 20.5%) and the Ministry of Defense (¥12,400 million, 11.8%), while the private sector is diversified across renewable energy, logistics, housing, and other areas. This has formed an order structure that limits excessive dependence on specific clients.
ENVALITH's Perspective
Performance Trend
The revenue trend over the past five fiscal periods was as follows: FY2022 ¥89,164 million → FY2023 ¥84,004 million → FY2024 ¥94,917 million → FY2025 ¥86,462 million → FY2026 ¥104,748 million. FY2025 (ended March 2025) saw significant deterioration due to delays in progress on large-scale projects, among other factors, but in FY2026 (ended March 2026), progress on large-scale projects remained at a high level in both the civil engineering and construction segments, achieving record-high revenue. Improved productivity in the construction segment contributed to margin improvement, with the operating margin improving to 6.3% (from 6.0% in the previous period). While steady public and private capital investment provided a tailwind as an external factor, selling, general and administrative expenses continued their upward trend, reaching ¥7,952 million (up 5.9% year on year) due to expanded DX and human capital investment. For FY2027 (ending March 2027), the company forecasts revenue of ¥116,000 million (up 10.7% year on year) and operating profit of ¥7,100 million (up 6.8% year on year).
Growth Strategy
Under the medium-term management plan (FY2024–FY2026), the company is promoting the scaling-up of projects, expansion into new energy fields, and human capital management.
The company aims to scale up orders and improve profitability by leveraging the strengths of each business division. In FY2026 (ending March 2026), non-consolidated orders received rose sharply to ¥127,986 million (up 23.1% year on year), with orders in the construction segment expanding rapidly to ¥56,963 million (up 58.4% year on year). The high level of progress on large-scale projects was the main driver of the 21.1% increase in net sales, indicating that the effects of these initiatives are being reflected in the results.
The company is promoting entry into construction work related to renewable energy such as wind power, biomass, and solar power. Expansion into offshore wind power-related construction, leveraging its specialized marine civil engineering technology, is expected. In FY2026 (ending March 2026), orders received for marine civil engineering expanded sharply to ¥40,102 million (up 40.6% year on year), suggesting progress in capturing energy-related demand.
The company is promoting DX investment and human capital management aimed at improving productivity and achieving sustainable growth. In FY2026 (ending March 2026), selling, general and administrative expenses increased to ¥7,952 million (up 5.9% year on year), reflecting continued expansion of DX and human capital investment. Improved productivity in the construction segment has contributed to an improvement in the operating profit margin, indicating that the effects of these investments are partially materializing.
As a target under the medium-term management plan, the company has set a dividend on equity (DOE) floor of 3.6% and a payout ratio (non-consolidated) of 40% or more. The dividend per share for FY2026 (ending March 2026) was ¥135 (payout ratio of 39.3%, DOE of 3.4%), and the forecast for FY2027 (ending March 2027) is ¥145 (payout ratio of 41.9%), maintaining a trend of increasing dividends. The company is working to enhance shareholder returns through consecutive dividend increases.
Last updated: July 19, 2026