ENVALITH
株式会社テノックス logo

TENOX CORPORATION

1905・Standard Market・Construction

Official website
株式会社テノックス logo
TENOX CORPORATION1905

Business

Tenox Corporation is a specialized construction company engaged in foundation engineering, established in 1970. Its core operations center on pile work (steel pipe piles, precast concrete piles, etc.) and ground improvement work (including the Tenocolumn method), capturing construction demand from both public and private sectors. The company has four consolidated subsidiaries (Tenox Giken, Hiroshima-gumi, Fukugo Gijutsu Kenkyusho, and TENOX ASIA), maintains sales offices nationwide across Japan, and is advancing overseas business in Vietnam. In January 2026, it entered into a capital and business alliance with Japan Home Shield Co., Ltd., strengthening collaboration in the ground survey and analysis field. Its main customers are construction contractors centered on general contractors, with Taisei Corporation accounting for 13.7% of net sales. Of net sales of ¥21,093 million (FY2026, ending March 2026), the construction business accounts for over 97%.

Business Model

The company holds multiple construction methods certified by the Minister of Land, Infrastructure, Transport and Tourism and technology review certifications, including the Teno Column Method, TN-X Method, and Gantetsu Pile Method, pursuing technological differentiation. Its basic business model is a subcontracting model in which it receives foundation work orders from general contractors and other clients and executes construction using its own construction machinery and engineers. It is improving construction profitability through optimization of contract terms and enhanced construction efficiency (cost of sales ratio of 81.0%, FY2026 (ending March 2026)). The company continues to invest ¥68 million in R&D expenses to maintain competitive advantage through higher value-added construction methods and commercialization of new methods.

Company Strengths

Holds multiple government-certified construction methods, including the Tenocolumn method (patented in 1984), the TN-X method (certified by the Minister of Land, Infrastructure, Transport and Tourism), the Gantetsu Pile method (certified by the Minister of Construction), the CP-X method (technical evaluation obtained in 2024), and the Tenocube method (construction technology review certification obtained in 2025). The company has also accumulated a track record of joint development with Nippon Steel, Nippon Hume, and others, building a technological foundation that is difficult to imitate in the short term.

In FY2026 (ending March 2026), while net sales declined 11.1% year on year to ¥21,093 million, the cost of sales ratio improved by 3.7 percentage points to 81.0% through optimization of contract terms and improved construction efficiency. Operating profit reached ¥1,289 million (up 15.6% year on year), with an operating margin of 6.1% (up 1.4 percentage points year on year). Achieving profit growth despite declining revenue demonstrates strong contract and construction management capabilities.

The company has established sales offices and equipment centers nationwide, from Hokkaido to Kyushu, building a construction system that includes subsidiaries such as Tenox Giken and Hiroshima-gumi. Its in-house capability to execute both pile work and ground improvement work enables it to respond to diverse demand from both the public sector (58.1% of completed construction value) and the private sector. As of FY2026 (ending March 2026), the company has secured a backlog of ¥6,229 million in construction orders.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue declined to ¥21,093 million (down 11.1% year on year) due to a decrease in large-scale pile construction work, but profits approached record highs, with operating profit of ¥1,289 million (up 15.6%) and net profit of ¥939 million (up 25.4%). The gross profit margin improved sharply from 15.3% to 19.0%, which can be evaluated as reflecting not merely fluctuations in construction volume but a transformation of the earnings structure driven by the company's own efforts, such as optimization of contract terms and improvement in construction efficiency.

The order backlog in the construction business decreased by approximately 32%, from ¥9,743 million at the end of FY2025 (ended March 2025) to ¥6,568 million at the end of FY2026 (ended March 2026). Achieving the FY2027 (ending March 2027) revenue forecast of ¥23,000 million (up 9.0% year on year) will require building up new orders. On the other hand, public investment (disaster prevention/mitigation and national resilience) remains firm as a market condition, and private investment is also expected to remain solid backed by improving corporate earnings, but there are risks of investment plan postponements due to soaring construction material prices stemming from oil issues and labor shortages. Order trends warrant close monitoring.

The capital and business alliance with Japan Home Shield Corporation (an equity-method affiliate), acquired in January 2026, aims to enhance technical added value through collaboration in the ground survey and analysis field. However, as the deemed acquisition date is February 28, 2026, the contribution to performance in the current period is minor. Allocation of acquisition costs has not yet been completed and provisional accounting treatment is ongoing, with finalized goodwill figures and full-scale contribution from equity-method profit/loss expected from FY2027 (ending March 2027) onward. As the materialization of the alliance's effects will take time, a medium- to long-term perspective is appropriate for evaluation.

Growth Strategy

The medium-term management plan "Opening the Future, A New Step Forward" (FY2024–FY2026) promotes five key strategies.

Promoting improvement in construction profit margins through optimization of contract terms and enhanced construction efficiency. Achieved an operating margin on net sales of 6.1% in FY2026 (ending March 2026) (up from 4.7% in the previous fiscal year), realizing higher profit despite lower revenue. The company will continue to capture demand for large-scale ground improvement work for factories and logistics facilities.

Maintaining and strengthening technical barriers to entry through ongoing development and certification of proprietary construction methods. Through a capital and business alliance with Japan Home Shield Co., Ltd. (share acquisition in January 2026), the company aims to deepen technical collaboration in the ground survey and analysis field and create added value that could not be achieved independently.

Promoting improved construction efficiency and reduced environmental impact through the use of digital technology. The company has set forth sustainability management aimed at becoming a 100-year enterprise, addressing business issues related to society, the environment, labor, and management.

In response to structural challenges such as the aging of on-site workers, labor shortages, and overtime work cap regulations, the company is promoting recruitment and development of human resources as well as strengthening relationships with partner companies. It has also implemented measures to retain talent and provide incentives, including through a restricted stock compensation plan (¥28 million recognized in FY2026 (ending March 2026)).

As part of its promotion of capital-efficient management, the company has adopted a dividend policy based on DOE (dividend on equity). The annual dividend for FY2026 (ending March 2026) is ¥60.5 per share (DOE of 3.0%, payout ratio of 42.9%), and the forecast for FY2027 (ending March 2027) is ¥62.0 per share (expected payout ratio of 41.3%), maintaining an upward trend in dividends. The company will expand shareholder returns while maintaining financial soundness with an equity ratio of 63.7%.

Last updated: July 19, 2026