YAMATO CORPORATION
1967・Standard Market・Construction
Business
Yamato Corporation was established in 1946 in Maebashi City, Gunma Prefecture, as a comprehensive facility engineering company handling design, supervision, and construction across five fields: building and civil engineering, air conditioning and sanitation, electrical and telecommunications, water treatment plants, and refrigeration. Operating as a group that includes 11 consolidated subsidiaries, the company serves both public sector and private clients, conducting business primarily in the Kanto and Tohoku regions. Construction work accounts for approximately 99% of net sales, with the remainder coming from commercial facility operations, specifically the "Michi-no-Eki Maebashi Akagi" roadside station operated by a consolidated subsidiary. Consolidated net sales for FY2026 (ending March 2026) reached ¥54,327 million, marking a new record high for consecutive periods. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The core construction business generates revenue on a contract basis. In the air conditioning and sanitation field, the tokumei (sole-source/negotiated) order ratio is high at 89.9% (FY2026, ending March 2026), characterized by stable order intake based on long-term relationships of trust with customers. The company promotes piping fabrication at its own factories (Asakura Plant and Product Center), aiming to improve productivity and profitability through a transformation from on-site construction to factory manufacturing. The commercial facility operation business adopts a stable revenue model combining real estate management income and merchandise sales income.
Company Strengths
In FY2026 (ending March 2026), the ratio of sole-source (tokumei) orders in the air conditioning and sanitation segment reached 89.9%, demonstrating strong trust relationships with customers. The company has secured a year-end carryover balance of ¥42,474 million (consolidated), providing high visibility into next-period revenue. Major customers include leading general contractors such as Shimizu Corporation, Obayashi Corporation, and Kajima Corporation, forming a stable order base.
The Daiwa Environmental Technology Research Institute, established in 1989, has continued R&D in water treatment and air conditioning/sanitation fields, with R&D expenses of ¥183 million in FY2026 (ending March 2026). The company owns an integrated equipment plant (processing center) established in 1994 and a Product Center established in 2020, achieving quality control and productivity improvements through in-house piping fabrication.
In FY2026 (ending March 2026), water treatment plant sales reached ¥5,524 million (up 25.0% year on year), and electrical/telecommunications sales reached ¥7,868 million (up 10.0% year on year), showing notable growth. The company is diversifying its revenue sources while reducing dependence on the air conditioning and sanitation segment, with a substantial carryover balance of ¥7,018 million for water treatment plants going into the next period.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales reached ¥54,327 million (up 2.2% year on year), operating profit was ¥5,401 million (up 12.6%), and net income attributable to owners of the parent was ¥4,589 million (up 16.7%), marking the highest levels in the past five fiscal years. The gross profit margin was roughly flat at 14.7% (versus 14.8% in the prior period), while the operating profit margin improved to 9.9% (versus 9.0% in the prior period). As external factors, resilient public investment and a recovery in private-sector capital expenditure provided tailwinds, while rising labor costs and fluctuations in materials and equipment prices continued to exert downward pressure. For FY2027 (ending March 2027), the company forecasts net sales of ¥55,000 million (up 1.2%) and operating profit of ¥4,800 million (down 11.1%), shifting to a profit decline forecast driven mainly by increased human capital investment and capital expenditure related to "Yamato Techno Park," indicating a transition to a growth investment phase.
Growth Strategy
With "Building the Future through Construction Products" as its long-term vision, the company is deepening construction industrialization through a shift to factory manufacturing and DX investment.
The company plans to bring "Yamato Techno Park" online during the new medium-term management plan period (2026-2028), a facility that will dramatically accelerate automation, robotization, and transport efficiency in steel frame and equipment processing. Construction in progress surged to ¥3,483 million (from ¥131 million in the prior period) in FY2026 (ending March 2026), indicating that investment is entering full swing.
The company is focusing on establishing a construction management framework to accommodate increased construction volume and on developing personnel to drive construction products. Increased human capital investment is explicitly cited as one of the main reasons for the projected profit decline in FY2027 (ending March 2026), indicating the company is in an upfront investment phase aimed at strengthening medium- to long-term competitiveness.
The new medium-term management plan explicitly states a policy of actively pursuing DX investment to further enhance productivity. Acquisition of intangible fixed assets (¥335 million in FY2026, ending March 2026) increased from ¥215 million in the prior period, indicating progress in systems investment.
Starting FY2027 (ending March 2026), the company will transition to a new dividend policy targeting a consolidated dividend payout ratio of 45% and a DOE (dividend on equity) of 4.0%. FY2027 (ending March 2026) dividends are planned at ¥77 per share (up from ¥60 in the prior period), reflecting shareholder returns that combine stability with performance linkage.
To reduce dependence on air conditioning and sanitation work, the company is making progress in expanding orders for water treatment plants (up 17.8% year-on-year in FY2026 order intake, ending March 2026) and telecommunications construction (up 10.0% year-on-year). Backlog in telecommunications is also building up (¥6,026 million, up 12.2% year-on-year), which is expected to contribute to revenue in the following period.
Last updated: July 19, 2026