SEIKITOKYU KOGYO CO., LTD.
1898・Prime Market・Construction
Construction Business
A road construction business centered on paving and civil engineering, accounting for approximately 78% of group sales as the core segment
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (net sales) | ¥74,658 million | ¥80,366 million | ↓ |
| Segment profit (operating profit) | ¥7,252 million | ¥8,070 million | ↓ |
| Orders received | ¥75,765 million | ¥76,009 million | ↓ |
| Contracts carried forward to next period | ¥41,012 million | ¥39,905 million | ↑ |
| Segment profit margin | 9.7% | 10.0% | ↓ |
Business Details
Handles paving, civil engineering, and construction work in general. Provides asphalt paving, concrete paving, civil engineering works and other services to expressway operating companies, the Ministry of Land, Infrastructure, Transport and Tourism and other public-sector clients, as well as private-sector customers. The company is promoting sales activities in the fields of aging infrastructure countermeasures and disaster prevention/mitigation, while also working to improve productivity and operational efficiency through the use of ICT technologies. It is focusing on strengthening its response capability for publicly ordered projects and on sales activities to expand its private-sector customer base.
Recent Overview
Both completed construction revenue and profit declined due to the reaction from the concentration of large-scale projects in the prior period, while contracts carried forward increased
Completed construction revenue for FY2026 (ending March 2026) was ¥74,658 million (down 7.1% year on year), and segment profit was ¥7,252 million (down 10.1% year on year). This reflects a decline compared with the prior period, in which large-scale projects were concentrated in construction. On the other hand, orders received of ¥75,765 million were roughly in line with the prior year, and contracts carried forward to the next period increased to ¥41,012 million (up ¥1,107 million year on year), maintaining the sales base for the next period. Notably, orders received for concrete paving expanded to approximately double the prior-period level.
Key Products
Growth Drivers
- Continued orders for renewal projects (specified renewal works, etc.) placed by expressway operating companies
- Steady trend in public investment supported by the government's promotion of national resilience measures
- Expanding demand in the fields of aging infrastructure countermeasures and disaster prevention/mitigation (response to intensifying weather disasters and large-scale earthquakes)
- Support for next-period sales from the accumulation of contracts carried forward, which reached ¥41,012 million
- Sales activities aimed at strengthening the response system for publicly ordered projects and expanding the private-sector customer base
- Improved on-site productivity and operational efficiency through the use of ICT technologies
Risks
- Risk of rising construction costs due to persistently high raw material and energy prices
- Risk of timing gaps in completed construction revenue and profit depending on the progress of large-scale projects
- Impact on future sales from the declining trend in asphalt paving orders received (¥54,327 million for the period, down 6.2% year on year)
- Chronic labor shortage risk due to the aging of technicians and declining entry of younger workers
- Uncertainty in the business environment and elevated crude oil prices stemming from geopolitical risks such as the situation in the Middle East
- Risk of rising labor costs in the construction industry
Last updated: June 19, 2026