SEIKITOKYU KOGYO CO., LTD.
1898・Prime Market・Construction
Business
Saiseki Tokyu Kogyo was founded in 1950 and, as a member of the Tokyu Group, operates a construction business centered on paving and civil engineering, alongside a paving materials manufacturing and sales business handling products such as asphalt mixtures. Its group structure includes 12 subsidiaries and 2 affiliated companies, serving a broad range of clients from public-sector entities such as expressway operators, the Ministry of Land, Infrastructure, Transport and Tourism, and local governments, to private-sector customers. Its main sources of orders are renewal projects from the East Nippon, Central Nippon, and West Nippon Expressway companies, as well as construction work related to national resilience measures, and it maintains a network of branches and business offices nationwide. The paving materials manufacturing and sales business has a vertically integrated structure combining internal demand (for the construction business) with external sales. The company transitioned to the Prime Market of the Tokyo Stock Exchange in 2022.
Business Model
In the construction business (completed construction revenue of ¥74,658 million), the company undertakes contracts from government and private-sector clients under a contracting model in which revenue is recognized as completed construction revenue. In the paving materials manufacturing and sales business (product sales of ¥33,373 million), in-house manufactured asphalt mixture and other products are sold to external customers, while inter-segment internal supply to the construction business (¥12,906 million) secures stable internal demand. This vertically integrated structure contributes to the management of materials procurement costs and to earnings stabilization.
Company Strengths
The company continues to receive orders for large-scale pavement repair and specified renewal works from East Nippon, Central Nippon, West Nippon, and Hanshin Expressway companies, with multiple expressway company projects among the completed construction works for the current period. The negotiated (non-competitive) order ratio for asphalt pavement reached 68.6% (in the current fiscal year), forming a stable order-taking structure that does not depend on competitive bidding. The carry-forward construction backlog for the next fiscal year remains at a high level of ¥41,012 million.
Through a vertically integrated model in which the pavement materials manufacturing and sales business supplies ¥12,906 million internally to the construction business, the company secures stability in materials procurement and cost control capability. In FY2026 (ending March 2026), operating profit in the pavement materials manufacturing and sales business increased 101.5% year on year to ¥2,999 million, reflecting the effects of promoting price pass-through and leveraging internal demand.
The company invests ¥472 million annually in R&D, centered on its Technical Research Institute, and has developed multiple proprietary technologies including low-carbon asphalt mixtures, the high-strength mixture "α Strong" utilizing recycled agricultural waste plastic, a remote-control system for asphalt finishers (verified over a distance of approximately 140km), and long-life mixtures. The company also participates in the Ministry of Land, Infrastructure, Transport and Tourism's new technology adoption promotion program, accumulating technical proposal capability as a competitive advantage.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥92,414 million in FY2023 (ending March 2023) to ¥99,358 million in FY2025 (ending March 2025), before declining to ¥95,259 million in FY2026 (ending March 2026), down 4.1% year on year. This was mainly due to a rebound effect from the prior-year comparison, when large-scale construction projects were concentrated, resulting in completed construction revenue of ¥74,658 million (down 7.1% year on year) in the construction business. On the profit side, operating profit improved continuously from a trough of ¥2,669 million in FY2023 (ending March 2023) to ¥6,417 million in FY2026 (ending March 2026), and net profit attributable to owners of the parent also renewed its highest level in the past five fiscal periods at ¥4,666 million. As an external factor, amid continued elevated materials and energy prices, progress in passing on price increases in the paving materials business and improved profitability of construction projects in the construction business drove margin improvement. Operating cash flow improved substantially, from an outflow of ¥971 million in the prior period to an inflow of ¥11,417 million, and the financial position was also strengthened.
Growth Strategy
An integrated approach under the Medium-Term Management Plan (FY2024–FY2026) combining the strengthening of core business competitiveness, investment in human capital, and the promotion of sustainable management
The company is concurrently strengthening its capabilities to respond to public-sector orders and expanding its private-sector customer base. It continues to pursue productivity improvement and operational efficiency through the use of ICT technologies. In FY2026 (ended March 2026), order intake was ¥75,765 million, roughly on par with the previous year, and the order backlog rose to ¥41,012 million. The foundation for achieving the projected FY2027 (ending March 2027) net sales of ¥102,700 million is gradually being established.
The company has been passing on increased manufacturing costs to sales prices and strengthening sales of low-environmental-impact products (cold-mix asphalt and low-carbon asphalt mixtures). Investment in upgrading asphalt mixture plant equipment has also continued. In FY2026 (ended March 2026), segment profit reached ¥2,999 million (up 101.5% year on year), marking a substantial improvement and confirming the recovery in profitability.
Based on the long-term vision of the "Desired State for 2030," the company is advancing the expansion of human capital through securing, developing, and enhancing employee engagement, together with reducing environmental impact. Sustainable management, which takes into account social challenges such as climate change and population decline, is positioned as a key initiative of the Medium-Term Management Plan, with efforts continuing across the entire company.
Last updated: July 19, 2026