The Kaneshita Construction Co.,Ltd.
1897・Standard Market・Construction
Business
Kanashita Construction Co., Ltd. is a mid-tier construction company headquartered in Miyazu City, Kyoto Prefecture, founded in 1935 and incorporated in 1951. The construction business (civil engineering and building works) accounts for approximately 95% of consolidated net sales, with a broad customer base ranging from public-sector clients such as the Ministry of Land, Infrastructure, Transport and Tourism and Kyoto Prefecture to private companies. The group structure, which includes subsidiaries Tsukasa Construction and Wadagumi, supplements construction capacity, and the company also operates in asphalt manufacturing and sales, industrial waste recycling, and food service (conveyor-belt sushi restaurants). It also participates in solar power generation business through an equity-method affiliate, forming a diversified, community-based business portfolio. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The construction business follows a build-to-order model in which civil engineering and building works are won through negotiated or competitive tenders, with revenue recognized as completed construction revenue. The group maintains a vertically integrated structure in which in-house asphalt manufacturing, ready-mixed concrete production, and construction consulting functions support cost competitiveness through internal demand (internal sales of ¥343 million). Non-operating income (¥256 million), including interest and dividends received, underpins ordinary income, and the company is characterized by sound finances, funding working capital and capital expenditure entirely from its own resources.
Company Strengths
As of the end of FY2025 (ending December 2025), the equity ratio stood at 82.3%, with cash and cash equivalents of ¥8,925 million. Net assets reached ¥19,819 million, maintaining a financial structure that does not rely on interest-bearing debt. All working capital and capital expenditures are funded internally, resulting in extremely low financial risk.
Backlog carried forward to the next period as of the end of December 2025 stood at ¥9,685 million (up 11.2% year on year). Multiple projects exceeding ¥700 million are lined up, including nursing school development projects, Ministry of Defense buildings, and large-scale private-sector projects, providing high visibility for a recovery in revenue from 2026 onward. Backlog for construction work amounted to ¥8,135 million, accounting for 84% of the total.
The proportion of negotiated (non-competitive) orders in construction work rose sharply from 1.3% in the previous fiscal year to 40.7% in the current fiscal year. The expansion of stable order intake not dependent on competitive bidding reflects a structural change contributing to reduced price competition risk and improved profit margins.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥10,659 million in FY2023 (ended December 2023) before declining for two consecutive periods to ¥8,837 million in FY2025 (ended December 2025), but turned around in Q1 FY2026 (ending December 2026) with revenue of ¥2,699 million (up 17.4% year-on-year). Operating profit, however, remained limited at ¥184 million (up 1.1% year-on-year), as a rise in the cost-of-sales ratio (from 82.1% to 84.8%) constrained profit expansion. External factors—surging construction material prices, supply uncertainty, and rising labor costs—have persisted, and a full-fledged recovery in profitability has not yet been achieved. The full-year earnings forecast remains unchanged at revenue of ¥10,500 million, operating profit of ¥100 million, ordinary profit of ¥320 million, and net income of ¥200 million. Q1 ordinary profit of ¥202 million already exceeds the full-year forecast, which needs to be interpreted in light of the seasonal skew in construction progress.
Growth Strategy
Aiming for sustainable growth through the acquisition of design-build projects, promotion of DX, expansion of human capital, and participation in renewable energy business.
Promoting the acquisition of higher-margin projects through an expansion of the ratio of negotiated (tokumei) orders. Results are already emerging, with orders from public sector clients in building construction reaching ¥171 million in Q1 FY2026 (ending December 2026) (a substantial year-on-year increase). Expansion of integrated design-build projects is expected to contribute to improved profit margins.
Digitalizing construction management and business processes to address industry-wide challenges such as labor shortages and an aging workforce, while improving productivity and profitability. In an construction industry facing an increasingly severe labor shortage, DX promotion is positioned as an essential measure for maintaining competitiveness.
Securing a stable earnings source outside of construction through participation in renewable energy business via equity-method affiliates (Miyazu Solar Power and Tango Solar Power). This contributes to diversifying non-operating income and serves as a hedge against fluctuations in construction order volumes.
Continuing to expand orders from public sector clients in both civil engineering and building construction, leveraging an external environment in which public investment remains firm. The proportion of public sector orders rose to 77.2% in Q1 FY2026 (ending December 2026), advancing the construction of a stable revenue base.
Last updated: July 17, 2026