The Kaneshita Construction Co.,Ltd.
1897・Standard Market・Construction
Construction Business
Kanashimo Construction's core segment. Engages in civil engineering and building construction overall, accounting for approximately 96% of consolidated net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative Q1) | ¥2,581 million | ¥2,212 million | ↑ |
| Segment profit (cumulative Q1) | ¥306 million | ¥312 million | ↓ |
| Orders received (cumulative Q1) | ¥1,822 million | ¥1,743 million | ↑ |
| Net sales (full-year actual) | ¥8,391 million | － | — |
| Segment profit (full-year actual) | ¥654 million | － | — |
Business Details
A construction business centered on civil engineering works (roads, rivers, sewerage, etc.) and building construction (private facilities, public facilities, etc.). In addition to the parent company itself, the business is undertaken by consolidated subsidiaries Tsukasa Construction Co., Ltd. and Wadagumi Co., Ltd., as well as equity-method affiliates Kanashimo Koumuten Co., Ltd. and Sanki Kogyo Co., Ltd. Orders are mainly obtained through competitive bidding, and the company is a region-focused general contractor receiving orders from both public and private sectors, primarily in the Kinki region. In Q1 of FY2026 (ending December 2026), net sales of ¥2,581 million were recorded (up 16.7% year on year).
Recent Overview
Net sales rose 16.7% year on year, but segment profit declined 1.9%, reflecting higher revenue but lower profit.
In the construction business for Q1 of FY2026 (ending December 2026) (January to March 2026), net sales rose sharply to ¥2,581 million (up 16.7% year on year), while segment profit declined slightly to ¥306 million (down 1.9% year on year). Soaring construction material prices and labor shortages pushed up costs, offsetting the effect of higher sales. Orders received rose modestly to ¥1,822 million (up 4.5% year on year). Public-sector orders increased 28.8% year on year to ¥1,406 million (77.2% of the mix) from ¥1,091 million in the same quarter of the prior year, while private-sector orders fell 36.1% to ¥416 million, making the shift in order structure toward the public sector clear.
Key Products
Growth Drivers
- Backlog of construction in progress has grown to ¥9,885 million (up 11.2% from the prior period), expected to support a recovery in net sales in the next period
- Public-sector orders increased significantly to ¥1,406 million in Q1 (up 28.8% year on year), supported by the resilient trend in public investment
- Public-sector orders for building construction surged from ¥1 million in the same quarter of the prior year to ¥171 million, emerging as a new source of orders
- Efforts to strengthen the acquisition of design-build projects and promote company-wide DX to improve productivity and profitability
- Multiple projects worth ¥700 million or more, including a nursing school development project, a Ministry of Defense building, and large private-sector projects, are lined up for the next period's backlog
Risks
- Risk that elevated construction material prices will push up construction costs and pressure gross margin (in Q1, segment profit fell 1.9% year on year despite higher sales)
- Risk of rising construction costs due to chronic shortages of engineers and skilled laborers and an aging workforce
- Risk of continued weakness in private-sector capital investment, as private-sector orders fell sharply by 36.1% year on year in Q1
- Risk of profitability deterioration from intensifying order competition (orders are mainly obtained through competitive bidding, and competition ratios for civil engineering works remain high)
- Impact on the order environment from uncertainty over the economic outlook, including rising crude oil prices amid heightened tensions in the Middle East
Last updated: March 25, 2026