JGC HOLDINGS CORPORATION
1963・Prime Market・Construction
Integrated Engineering
Core segment of the global EPC business, centered on oil, gas, and LNG
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (FY2026, ending March 2026) | ¥679,588 million | ¥794,981 million | ↓ |
| Segment operating income (FY2026, ending March 2026) | ¥33,641 million | △¥14,591 million | ↑ |
| Orders received (FY2026, ending March 2026) | ¥409,271 million | ¥922,593 million | ↓ |
| Order backlog (end of FY2026, ending March 2026) | ¥1,155,589 million | ¥1,404,603 million | ↓ |
| Segment assets (end of FY2026, ending March 2026) | ¥597,619 million | ¥571,164 million | ↑ |
| Sales to major customer: Saudi Aramco (FY2026, ending March 2026) | ¥103,948 million | ¥146,664 million | ↓ |
Business Details
Provides EPC (engineering, procurement, construction, and commissioning) services for plants and facilities related to oil refining, petrochemicals, gas processing, LNG, chemicals, nuclear power, pharmaceuticals, environmental conservation, and other fields. The major customer is Saudi Aramco (sales of ¥103,948 million). Overseas sales account for approximately 79% of the segment total, with the Middle East, North America, and Southeast Asia as key markets. JGC Global Corporation and JGC Corporation play central roles.
Recent Overview
Profitability improved with the completion of multiple large overseas projects, while orders fell short of target, resulting in project delays
In FY2026 (ending March 2026), the cost of sales ratio improved due to the completion of multiple large overseas projects, and segment operating income turned positive, rising from △¥14,591 million in the prior period to ¥33,641 million. Meanwhile, orders received totaled ¥409,271 million (overseas ¥250,492 million, domestic ¥158,778 million), significantly below the ¥650.0 billion target, resulting in project delays. In response to the deteriorating situation in the Middle East, the company implemented measures to ensure the safety of local staff, and reflected the impact amount as of the fiscal year-end in its results, assuming the issue would be resolved in the first half of the following period.
Key Products
Growth Drivers
- Continued progress on new and expansion projects in oil- and gas-producing countries, driven by medium- to long-term growth in natural gas and LNG demand (Mozambique FLNG, Indonesia onshore LNG, LNG Canada Phase 2, etc.)
- Expansion of capital investment in the semiconductor and data center fields, primarily in Southeast Asia (new orders under the Nixyte brand)
- Realization of capital investment plans in domestic life sciences, food, and resource recycling (SAF) fields
- Steady demand for periodic maintenance and repair work at existing domestic oil refineries and chemical plants
- Expectations for order recovery from the following period onward, driven by progress in discussions toward formal EPC contract conclusion for delayed projects (including those already selected as preferred bidders)
- Creation of EPC order opportunities for CO2 capture facilities through collaboration with SLB Capturi
Risks
- Continued risk of order target shortfalls and delays (orders received in FY2026, ending March 2026 of ¥409,271 million fell significantly short of the ¥650.0 billion target)
- Impact on ongoing projects from escalating tensions in the Middle East (risks to local staff safety and schedule delays)
- Risk of rising customer CAPEX due to higher interest rates and construction costs, leading to postponed investment decisions (particularly in sustainable fields such as hydrogen, fuel ammonia, and SAF)
- Downward pressure on medium-term sales and profits due to a decline in order backlog (from ¥1,404,603 million to ¥1,155,589 million)
- Impact of exchange rate fluctuations on order backlog and sales (adjustment amount of ¥21,303 million in the current period)
- Risk of further delays in domestic sustainable field projects due to slow disbursement of government subsidies and regulatory framework development
Last updated: June 19, 2026