RAITO KOGYO CO., LTD.
1926・Prime Market・Construction
Business
Raito Kogyo was founded in 1948 and is a specialized civil engineering construction company whose core operations are slope protection works, ground improvement works, repair and reinforcement works, and environmental remediation works. Its main customers are government agencies such as the Ministry of Land, Infrastructure, Transport and Tourism, expressway operators, and railway operators, and it has a strong presence in the disaster prevention/mitigation and national resilience fields. The company has 12 consolidated subsidiaries and 1 affiliated company, and is expanding its ground improvement business in North America through its U.S. subsidiary RAITO, INC., as well as its presence in Southeast Asia through a joint venture in Vietnam. Consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥139,216 million, surpassing in its first year the final-year target of the medium-term management plan "Raito2027".
Business Model
Based on a fundamental construction contracting model spanning order receipt through construction and completion, the company receives orders across multiple work categories including slope and embankment countermeasures, foundation ground improvement, repair and reinforcement, environmental remediation, and building construction. It thoroughly implements selective order-taking with an emphasis on profitability, aiming to improve construction profit margins. Abundant order backlog of ¥91,929 million carried into the next fiscal period forms a stable base for revenue recognition, and the structure is designed to maintain and enhance profitability by improving construction efficiency through the use of ICT and DX technologies.
Company Strengths
With over 70 years of track record in specialized civil engineering fields such as slope protection, ground improvement, and repair/reinforcement, the company holds proprietary construction methods it developed in-house, including the RAS Column Method, Shear Infiltration Method, and Automatic-Shot R. It continues joint research with companies in other industries, universities, and the Ministry of Land, Infrastructure, Transport and Tourism, among others, with R&D expenses of ¥911 million in FY2026 (ending March 2026). This technological base, which is difficult for competitors to replicate in a short period, supports highly profitable order intake.
The order backlog carried forward to the next fiscal period reached ¥91,929 million (consolidated) at the end of FY2026 (ending March 2026), already securing a substantial portion of next period's revenue. Diversification of work types across both public-sector and private-sector clients is also progressing, reducing the risk of dependence on a single work type. This substantial order backlog enhances the stability and predictability of business performance.
At the end of FY2026 (ending March 2026), the equity ratio stood at 71.5%, with cash and cash equivalents of ¥29,975 million. The debt redemption period was 0.13 years, and the interest coverage ratio was 117 times, indicating an extremely high level of financial soundness. This robust financial foundation enables the company to pursue both growth investment and shareholder returns simultaneously, and the medium-term plan also envisions utilizing borrowings of up to ¥10,000 million.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, rising from ¥109,504 million in FY2022 to ¥139,216 million in FY2026 (ending March 2026). Growth accelerated notably in FY2026, up 14.6% year on year. Operating profit recovered from a trough of ¥11,245 million in FY2024 to a record ¥17,201 million in FY2026. The operating margin continued to improve, from 9.6% in FY2024 to 10.5% in FY2025 and 12.4% in FY2026. As external tailwinds, sustained high levels of government construction investment related to disaster prevention, mitigation, and national resilience, along with solid private-sector non-residential construction investment, provided support. North American sales rose 49.2% to ¥11,358 million (versus ¥7,613 million in the prior period), and the contribution from overseas operations continued to expand.
Growth Strategy
Under the medium-term management plan "Raito2027," the Company is strengthening its three pillars: specialized civil engineering, construction, and overseas business.
The Company will strengthen sales activities that leverage the individual characteristics of each business location, including group companies, aiming to expand orders in specialized civil engineering fields such as slope countermeasures, ground improvement, and repair/reinforcement. It will continue selective order-taking with an emphasis on profitability, pursuing improvement in construction profit margins. In FY2026 (ended March 2026), gross profit margin improved to 21.8%, reflecting the effects of these measures in the numbers.
The Company aims to expand orders for condominium construction and other projects primarily in the greater Tokyo metropolitan area, enhancing the profit contribution of the construction division. In FY2026 (ended March 2026), construction sales rose 27.3% to ¥20,954 million (from ¥16,463 million in the previous fiscal year), and the order backlog carried into the next fiscal year remained high at ¥22,588 million.
The Company will promote the expansion of order-taking and construction of foundation and ground improvement work at its U.S. subsidiary. In FY2026 (ended March 2026), sales in North America rose 49.2% to ¥11,358 million (from ¥7,613 million in the previous fiscal year), and its share of consolidated group sales rose to 8.2%. The Company plans to continue enhancing its overseas business to contribute to securing the necessary profit for the group as a whole.
During the medium-term management plan period, the Company will continue a "progressive dividend" policy, targeting a "dividend payout ratio of 50% or higher" as a guideline. In the final year (FY2027), it aims to achieve a "DOE (dividend on equity ratio) of 6% or higher." In FY2026 (ended March 2026), the dividend payout ratio reached 50.3%, already achieving the target. The forecast dividend for FY2027 (ending March 2027) is ¥146 per share (payout ratio of 52.0%).
Last updated: July 19, 2026