TAIHEI DENGYO KAISHA,LTD.

Business Details

This segment engages in the installation and modification of thermal and nuclear power generation facilities, steel-related facilities, environmental protection facilities, chemical plants and other equipment, along with associated electrical instrumentation, insulation, and painting work, as well as plant dismantling and decommissioning, both domestically and overseas. It accounts for approximately 31% of consolidated net sales, forming one of the two core segments alongside the Maintenance and Repair Work segment. In FY2026 (ending March 2026), an increase in nuclear power facility construction work drove overall sales and profit growth for the segment.

Recent Overview

Order backlog expanded 69% year on year to ¥111,081 million on a surge in orders for nuclear power and environmental protection work

In FY2026 (ending March 2026), the Construction Work segment achieved significant profit growth, with net sales of ¥44,531 million (up 13.7% year on year) and segment profit of ¥2,966 million (up 94.7% year on year), driven by an increase in nuclear power facility construction work. Orders received expanded sharply to ¥89,865 million (up 65.7% year on year) due to increases in nuclear power facility construction work and environmental protection facility work, and the order backlog at period end grew to ¥111,081 million (up 69.0% from the prior year-end). Visibility into future sales has improved substantially.

Key Products

Growth Drivers

• Continued expansion of demand for work related to the restart of nuclear power plants and associated safety measures
• Increase in orders for new construction and replacement of LNG thermal power facilities driven by the long-term decarbonized power source auction
• Improved visibility of future sales due to a substantial buildup in order backlog (¥111,081 million at end of FY2026 (ending March 2026), up 69.0% from the prior year-end)
• Expansion of overseas business (consolidated overseas construction sales of ¥6,925 million in FY2026 (ending March 2026), up 15.9% year on year)
• Expanded EPC order opportunities through entry into the renewable energy field, including biomass power plants
• Policy under the new medium-term management plan (FY2026–FY2028) to expand business areas including nuclear power, decarbonization, semiconductors, and data centers

Risks

• Impact on completed construction revenue and provisions for construction losses due to changes in estimates of construction progress (risk of fluctuations in outsourced labor volume and order unit prices)
• Risk of period-to-period fluctuation in net sales due to concentration or dispersion of completion timing for large-scale projects
• Constraints on the ability to respond to large-scale thermal and nuclear power plant construction work due to difficulty securing human resources
• Increasing difficulty in securing construction capacity and partner companies to respond to the sharp rise in order backlog (¥111,081 million)
• Risk of deteriorating profitability on large-scale projects (provision for construction losses increased from ¥131 million in the prior period to ¥1,055 million in the current period)
• Impact on overseas construction work from geopolitical risks such as US trade policy and Middle East conditions