TAISEI ONCHO CO., LTD.
1904・Standard Market・Construction
Business
Taisei Onchou Co., Ltd. is a building-equipment construction specialist group founded in 1941, whose core businesses are the design, construction, and maintenance of air conditioning, water supply/drainage and sanitation, and electrical systems. Domestically, Taisei Onchou itself, Onchou Ecosystems, and Woodtec handle equipment construction, while overseas operations are conducted through ALAKA'I MECHANICAL CORPORATION in Hawaii, USA, and Taisei Onchou Construction Engineering (Shanghai) Co., Ltd. in Shanghai, China. Major customers include major general contractors (Fujita Corporation accounts for approximately 10% of net sales), medical facilities, and manufacturers related to semiconductors and data centers. Domestic sales account for approximately 77% of consolidated sales, with the United States contributing approximately 20%, reflecting a geographically diversified business structure.
Business Model
An order-based business model built on two pillars: new construction work and renovation/maintenance-repair work. On a non-consolidated basis, backlog carried into the next fiscal period stands at ¥49,431 million, with the order backlog underpinning sales from the following period onward. Renovation and maintenance-repair work generated completed construction revenue of ¥20,082 million in the current period, serving as a stable revenue source. The company also holds stock-type income sources such as real estate leasing and solar power generation as complementary revenue streams.
Company Strengths
As of the end of FY2026 (ending March 2026), non-consolidated backlog reached ¥49,431 million (up 17.6% from ¥42,027 million in the prior period), comprising ¥41,405 million in new construction and ¥8,026 million in renovation and other work. The company holds multiple large-scale projects on hand, including the new Shinagawa Ward general government building (scheduled for completion in June 2029) and the Nippon Medical School Musashi-Kosugi project (scheduled for completion in February 2028), securing medium-term revenue visibility.
Orders received by ALAKA'I MECHANICAL CORPORATION in FY2026 (ending March 2026) recovered sharply to ¥17,589 million, up 211.5% year on year (more than double). Segment profit margin also improved from 4.3% in the prior period to 6.6% in the current period, indicating that the business foundation is being established to support future revenue expansion and profit contribution.
As of the end of FY2026 (ending March 2026), interest-bearing debt stood at just ¥48 million, while cash and cash equivalents reached ¥18,448 million (up 46.2% year on year). Operating cash flow improved substantially to ¥9,716 million, reflecting high financial flexibility and a financial structure capable of supporting both growth investment and shareholder returns.
ENVALITH's Perspective
Performance Trend
Net sales came in at ¥61,719 million (down 1.3% year on year), a modest decline, but the reduction in cost of completed construction contracts (down ¥1,956 million year on year) drove a substantial improvement in gross margin to 17.7% (versus 14.6% in the prior period). Operating profit rose to ¥3,980 million (up 27.8% year on year), ordinary profit to ¥4,597 million (up 32.0% year on year), and profit attributable to owners of parent to ¥3,549 million (up 42.7% year on year), marking significant increases across all three profit tiers. The turnaround in equity in earnings of affiliates, from a loss of ¥66 million in the prior period to a gain of ¥359 million, also boosted ordinary profit. As external factors, demand remained firm for large-city redevelopment, manufacturing capital expenditure, and healthcare facility construction, while renewal demand for existing buildings also continued. On the other hand, elevated materials and labor costs remain a persistent cost pressure. The profit recovery trend that began after bottoming out in FY2022 accelerated in FY2026 (ending March 2026), reaching the highest profit level in the past five fiscal periods.
Growth Strategy
Under the new medium-term plan "LIVZON DREAM 2030 2nd half!", the company is advancing three themes: advanced engineering, recurring revenue, and productivity improvement
Strengthening specialization in high-value-added fields such as semiconductor plants, data centers, and medical facilities. Leveraging technical capability and proposal strength to differentiate from competitors and increase the proportion of orders for highly profitable projects. Orders received in FY2026 (ending March 2026) rose 14.0% year on year to ¥72,520 million, with robust order intake continuing, confirming the initial effects of the measures.
Building a stable revenue base that is less susceptible to economic fluctuations through expansion of renewal construction and maintenance contracts, including renovation and maintenance repair work. Orders received for renovation and maintenance repair work on a non-consolidated basis remained at a high level of ¥20,092 million in the fiscal year under review, and the backlog of ¥8,026 million carried over to the next fiscal year will support stable revenue in the following period.
Promoting DX through software investment (non-consolidated software balance surged from ¥211 million to ¥767 million) to improve efficiency in design, construction, and management operations. Productivity improvement is essential to address labor shortages and rising labor costs, and is expected to contribute to medium-term cost structure improvement.
Achieved an operating margin of 6.4% in FY2026 (ending March 2026), realizing the profitability improvement target of the former medium-term plan. This was driven by reductions in cost of completed construction, more sophisticated profitability management, and suppression of unprofitable projects. The financial base was also strengthened through full repayment of short-term borrowings of ¥2,700 million, laying the foundation for transition to the next medium-term plan.
Last updated: July 19, 2026