NITTOC CONSTRUCTION CO., LTD.
1929・Prime Market・Construction
Construction business (single segment)
A specialized construction company centered on slope protection, foundation, ground improvement, and repair works
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated) | ¥83,797 million | ¥67,216 million | ↑ |
| Operating profit (consolidated) | ¥5,827 million | ¥3,679 million | ↑ |
| Ordinary profit (consolidated) | ¥6,035 million | ¥3,764 million | ↑ |
| Profit attributable to owners of parent (consolidated) | ¥4,165 million | ¥2,408 million | ↑ |
| Operating margin (consolidated) | 7.0% | 5.5% | ↑ |
| Cost of completed construction contracts ratio (consolidated) | 81.1% | 81.3% | ↑ |
| Orders received (consolidated) | ¥81,056 million | ¥77,861 million | ↑ |
| Order backlog (consolidated) | ¥58,176 million | ¥60,917 million | ↓ |
| Return on equity (ROE) | 11.6% | 7.1% | ↑ |
| Earnings per share (consolidated) | ¥99.75 | ¥57.70 | ↑ |
Business Details
The Nittoc Construction Group operates a specialized construction business as a single segment, with main work categories comprising slope protection work, foundation and ground improvement work, repair work, civil engineering work, and geological consulting. The group has a high proportion of business from government and public agencies, with disaster prevention/mitigation and national resilience-related public works projects forming its core customer base. The group conducts its construction business through consolidated subsidiaries including Ryokusangyo Co., Ltd., Asoh Foamcrete Co., Ltd., regional Earth Engineering companies, and PT. NITTOC CONSTRUCTION INDONESIA.
Recent Overview
Net sales up 24.7% and operating profit up 58.4%, driven by Noto recovery and progress on large-scale projects
In FY2026 (ending March 2026), disaster recovery and disaster prevention-related projects such as the Noto Peninsula earthquake reconstruction work and the Nara Prefecture Hiyamizu district erosion control work, as well as large-scale railway projects such as the Hokkaido Shinkansen extension, progressed steadily, resulting in net sales of ¥83,797 million (up 24.7% year on year). Gross profit margin improved due to profitability verification at the order stage and enhanced cost management at the construction stage, leading to substantial profit growth across all profit items, with operating profit of ¥5,827 million (up 58.4% year on year) and profit for the period of ¥4,165 million (up 72.9% year on year). The utilization of Asoh Foamcrete's sales network also contributed to an 81.2% increase in repair work net sales. For FY2027 (ending March 2027), factoring in fluctuations related to large-scale projects, the company forecasts net sales of ¥80,500 million (down 3.9% year on year) and operating profit of ¥5,500 million (down 5.6% year on year).
Key Products
Growth Drivers
- Stable order intake for slope protection and foundation work driven by the continued high level of public construction investment related to national resilience and disaster prevention/mitigation
- Contribution to net sales from slope protection and civil engineering work through the continued progress of Noto Peninsula earthquake recovery and reconstruction projects
- Business expansion in the foamed concrete work field and utilization of the company's sales network through the consolidation of Asoh Foamcrete Co., Ltd. as a subsidiary
- Expansion of foundation and ground improvement work through participation in large-scale infrastructure projects such as the Hokkaido Shinkansen extension and other railway-related work
- Establishment and accelerated development of the "renewal work" area to capture demand related to aging social infrastructure (Medium-Term Management Plan 2026)
- Continued improvement in gross profit margin through profitability verification at the order stage and enhanced cost management at the construction stage
- Goal of securing stable performance under the Medium-Term Management Plan 2026 (FY2026-FY2028), targeting a three-year average net sales of ¥81.5 billion or more and operating profit of ¥5.7 billion or more
Risks
- Risk of a decline in net sales and profit from FY2027 (ending March 2027) onward due to the completion of large-scale projects such as Noto Peninsula earthquake recovery work (FY2027 forecast projects net sales down 3.9% and operating profit down 5.6%)
- Risk of rising costs due to continued increases in material prices and labor costs (outsourcing costs account for 51.6% of the cost of completed construction contracts, making the business susceptible to cost fluctuations)
- Uncertainty regarding resource and energy price increases and the outlook for the construction market amid heightened U.S. trade policy and geopolitical risks
- Impact on construction capacity and productivity, and increased costs of securing personnel, due to responding to overtime work cap regulations in the construction industry
- Risk of significant year-to-year fluctuations in business performance depending on project mix and the progress of large-scale projects (a background factor in the Medium-Term Management Plan 2026's adoption of three-year average performance management)
- Risk of profit pressure from an increasing trend in selling, general and administrative expenses (¥10,024 million in FY2026 (ending March 2026), up 12.8% year on year)
- Impact on securing net sales in future periods due to a decline in order backlog (¥58,176 million, down 4.5% year on year)
Last updated: June 23, 2026