ENVALITH
五洋建設株式会社 logo

PENTA-OCEAN CONSTRUCTION CO.,LTD.

1893Prime MarketConstruction

五洋建設株式会社 logo
PENTA-OCEAN CONSTRUCTION CO.,LTD.1893

Domestic Civil Engineering

Toyo Construction's highest profit-contributing segment, centered on domestic civil engineering contracting

PeriodCurrentPreviousChange
Sales (including internal consolidated segment transactions)¥326,196 million¥307,507 million
Sales to external customers¥325,887 million¥307,282 million
Segment profit¥40,200 million¥27,772 million
Segment profit margin12.3% (40,200/326,196)9.0% (27,772/307,507)
Depreciation¥5,188 million¥4,900 million
Individual orders received (full year)¥314,723 million¥232,980 million
Individual backlog (year-end)¥327,855 million¥310,607 million

Business Details

Engages in the contracting of civil engineering works in Japan and related businesses. In addition to the parent company, consolidated subsidiaries Goei Doboku Co., Ltd. and Yosin Construction Co., Ltd. serve as key operators. Primary customers are government agencies (Ministry of Land, Infrastructure, Transport and Tourism, etc.), providing social infrastructure such as ports, revetments, tunnels, and roads. Steady public investment driven by disaster prevention/mitigation and national resilience measures underpins the business foundation, making this the reporting segment with the highest profit contribution to the overall group.

Recent Overview

Profit increased 44.8% year on year on steady progress of large-scale port works and improved margins

In FY2026 (ending March 2026), steady progress on backlog projects including large-scale port works expanded sales to external customers to ¥325,887 million (up 6.1% year on year). Improved project profitability from design changes and other factors also contributed, resulting in a substantial increase in segment profit to ¥40,200 million (up 44.8% year on year). Individual orders received approached a record high at ¥314,723 million (up 35.1% year on year), driven by strong government orders as well as contributions from large-scale private-sector projects. Year-end backlog also built up to ¥327,855 million (up 5.6% year on year), providing a solid sales foundation for the next fiscal year.

Key Products

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Port & Marine Civil Engineering Works

Focuses on port and marine works such as breakwaters, quay walls, land reclamation, and dredging. Representative projects include foundation works and marine construction for the Kitakyushu Hibikinada Offshore Wind Farm turbines and the quay construction work at the outer Central Breakwater area of Tokyo Bay. Captures demand from national resilience and defense infrastructure development.

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Road, Bridge & Tunnel Works

Undertakes large-scale projects ordered by clients such as Central Nippon Expressway Company, including the Kukuri No. 2 Tunnel works on the Tokai-Kanjo Expressway and widening works on the Tomei Expressway. Public investment under the 5-Year Acceleration Plan for National Resilience underpins the order backlog.

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Sewerage & Environmental Infrastructure Works

Handles sewerage development and environment-related civil engineering works. Centered on public infrastructure projects ordered by government agencies, stable orders are expected against a backdrop of demand for disaster prevention and mitigation measures.

Growth Drivers

  • Continuation of steady public investment under disaster prevention/mitigation and the 5-Year Acceleration Plan for National Resilience
  • Increase in large-scale government orders related to defense facility and infrastructure development amid strengthening of defense capabilities
  • Expansion of orders for large-scale private-sector projects (logistics warehouses, data centers, etc.)
  • Steady progress of backlog projects including large-scale works and improved project profitability through design changes, etc.
  • Enhanced sales foundation for the next fiscal year from individual backlog of ¥327,855 million (up 5.6% year on year)
  • Expansion on both fronts: domestic government orders of ¥225,453 million (up 31.2% year on year) and domestic private-sector orders of ¥89,269 million (up 46.1% year on year)

Risks

  • Risk of rising construction costs due to persistently high construction material prices
  • Risk of supply constraints and construction delays due to tight labor supply and worker shortages among partner companies
  • Risk of order volume fluctuations due to government budget execution status and policy changes
  • Impact on construction progress and profitability from changes in weather and marine conditions
  • Risk of deteriorating profitability due to intensifying order competition
  • Risk of surging crude oil and crude oil-derived material prices due to factors such as the situation in Iran

Last updated: June 19, 2026