FUKUDA CORPORATION
1899・Prime Market・Construction
Business
Fukuda Corporation was founded in 1902 in Niigata City and incorporated in 1927 as a general contractor (listed on the TSE Prime Market). The group comprises 25 subsidiaries and 4 affiliated companies, with construction operations (civil engineering, building construction, and paving works) as its core business, alongside real estate operations (sale, leasing, and development of residential land and buildings) and other operations (construction-related peripheral services and welfare facility operation). Its main customers are private developers, commercial facility operators, and government agencies, with locations nationwide from Hokkaido to Kyushu. Construction operations account for approximately 98% of net sales, with private-sector building construction work forming the core of earnings.
Business Model
In the construction business, the core model is a contracting-type model in which orders are won through negotiated or competitive bidding and revenue is recognized upon completion of construction. Gross margin improvement is being pursued through securing appropriate contract prices (price pass-through) and strengthening construction management systems. The real estate business complementarily generates stable stock-type income through the sale and leasing of properties held by the company. The structure enhances visibility of future revenue by building up the order backlog carried forward to the next period across the group as a whole (¥139,837 million in the standalone construction business).
Company Strengths
For FY2025 (ending December 2025), non-consolidated construction orders received surged to ¥101,495 million (up 39.3% year on year), and the order backlog carried forward (non-consolidated construction business) reached ¥139,837 million (up 24.7% from the end of the previous period). The backlog includes large-scale projects such as the AEON Mall Koriyama new construction project (scheduled for completion in April 2027), providing high visibility into future revenue.
Progress in setting appropriate contract prices that reflect market prices led to construction segment profit of ¥7,503 million, up 8.4% year on year. The consolidated operating margin improved from 3.2% in FY2023 (ended December 2023) to 4.6% in FY2025 (ended December 2025), achieving the 4.5% operating margin target set out in the Medium-Term Management Plan 2025.
As a long-established general contractor founded in 1902 and listed in 1975, the company operates bases nationwide from Hokkaido to Kyushu. Subsidiaries such as Fukuda Road Co., Ltd., Kowa Co., Ltd., and Rex Co., Ltd. possess BIM/CIM and ICT construction capabilities as well as proprietary patented technologies (such as water-collecting well inspection cameras), giving the group collective technological competitiveness.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥154,358 million in FY2022 before recovering to ¥167,960 million in FY2025. Operating profit declined to the ¥5,200 million range in FY2022–FY2023, then improved to ¥7,665 million in FY2024 and ¥7,769 million in FY2025. The full-year forecast for FY2026 (ending December 2026) calls for revenue of ¥175,600 million (up 4.5% year on year) and operating profit of ¥7,600 million (down 2.2% year on year), reflecting expectations of higher revenue but a slight decline in profit. However, first-quarter results were strong, with revenue of ¥41,864 million (up 4.0% year on year) and operating profit of ¥2,873 million (up 26.4% year on year). As external factors, elevated construction material prices and continued wage increases persist, while resilient private-sector capital investment and infrastructure renewal demand are supporting revenue.
Growth Strategy
This is a phase of strengthening operations under the Medium-Term Management Plan 2030, targeting net sales of ¥190.0 billion, operating profit of ¥9.5 billion, and ROE of 8.5%.
Expanding private-sector construction orders through enhanced proposal capabilities and deepening of the customer base. Non-consolidated private-sector construction orders in Q1 FY2026 already reached ¥10,982 million (up 77.1% year on year), a notable achievement, with the buildup of the order backlog forming the foundation for achieving the medium-term sales target.
Actively promoting DX and AI utilization for business transformation as a response to labor shortages in the construction industry. The policy is to strengthen cost competitiveness through improved efficiency and quality of construction management, contributing to improved profit margins.
Expanding funds for next-period sales through the buildup of real estate business expenditures (¥3,971 million as of end-March 2026) and real estate for sale (¥2,114 million as of the same date). Strengthening a complementary source of earnings by creating property acquisition and development opportunities through collaboration with the construction business.
A stock split at a ratio of 2 shares for each share of common stock will be implemented, effective July 1, 2026. By lowering the investment unit amount, the aim is to expand the investor base, including individual investors, and improve stock liquidity.
Last updated: July 17, 2026