DAI-DAN CO., LTD.
1980・Prime Market・Construction
Business
Daidan Co., Ltd. is a comprehensive facility construction company founded in 1933, whose core businesses are the design, supervision, and construction of HVAC & Sanitary Construction and Electrical Construction. Domestically, it handles a wide range of work including industrial facilities, data centers, medical-related facilities, and Renewal Construction, and it is also expanding overseas with bases in Singapore, Thailand, Vietnam, and Taiwan. Its main customers are primarily private-sector companies such as major general contractors, pharmaceutical firms, semiconductor manufacturers, and data center operators, while maintaining a certain proportion of business with government agencies. The company has built a construction framework through six consolidated subsidiaries (domestic and overseas), and is also nurturing a regenerative medicine-related business. It is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A contract-based business model in which the company designs and executes ordered facility construction projects and recognizes revenue as completed construction revenue. Through profitability management at the time of order acceptance and price pass-through, the structure has improved the gross profit margin on completed construction; the gross profit margin on completed construction reached 21.9% in FY2026 (ending March 2026). By accumulating the backlog of construction in progress, visibility into the following period's performance is enhanced, forming a stable revenue base.
Company Strengths
Carried-forward construction orders (non-consolidated) at the end of FY2026 (ending March 2026) reached ¥326,955 million, up 38.3% year on year, including large-scale projects such as the Rapidus IIM-1 construction plan and the Kansai International Airport renovation. The accumulation of carried-forward orders functions as a leading indicator of sales and profit for subsequent periods, constituting a firm-specific competitive advantage that enhances the accuracy of earnings forecasts.
Gross profit on completed construction contracts for FY2026 (ending March 2026) was ¥56,083 million (up 35.6% year on year), with profit increasing substantially even as completed construction contract revenue declined 2.5% year on year. Improved profitability at the order-taking stage and thorough appropriate price pass-through led to a significant decrease in the provision for losses on construction contracts. A profit-generating capability that does not depend on sales scale is being established.
Orders received for Electrical Construction in the current period expanded sharply to ¥77,198 million (up 121.2% year on year), with carried-forward construction orders reaching ¥65,415 million (up 137.3% year on year). Carried-forward orders for Overseas Facility Construction reached ¥39,002 million (up 184.3% year on year), and those for Renewal Construction reached ¥74,819 million (up 51.7% year on year), forming a multi-axis order-taking base that no longer depends solely on HVAC & Sanitary Construction.
ENVALITH's Perspective
Performance Trend
Revenue achieved four consecutive years of growth, rising from ¥162,929 million in FY2022 (ended March 2022) to ¥262,732 million in FY2025 (ended March 2025), but FY2026 (ending March 2026) saw a slight decline to ¥256,228 million (down 2.5%). Meanwhile, operating profit reached ¥34,479 million (up 49.7%) and net income attributable to owners of the parent reached ¥26,772 million (up 53.5%), both marking record highs. The operating margin improved substantially from 8.8% to 13.5%, and ROE rose from 17.4% to 22.5%. As an external factor, sustained strong capital expenditure demand for data centers and semiconductor plants has supported the order environment. The main drivers of profit expansion were the improvement in the gross profit margin on completed construction contracts (from 15.7% to 21.9%) and the significant reduction in provisions for construction contract losses (from ¥1,218 million to ¥196 million), confirming a structural improvement in earning power through more sophisticated profitability management.
Growth Strategy
The company aims for sustainable profit growth through expansion along three axes—Electrical Construction, overseas business, and Renewal Construction—together with strengthened profitability management.
Orders received expanded sharply, up 94.8% year on year to ¥87,303 million, while the order backlog surged 108.9% to ¥73,033 million. The Electrical Construction ratio of completed construction revenue rose from 14.3% to 19.2%. While this is expected to contribute to revenue in future periods, maintaining thorough profitability management amid such rapid expansion will be key to sustaining earnings.
The Overseas Facility Construction ratio of consolidated completed construction revenue rose from 7.5% to 13.2%, with completed construction revenue up 72.8% year on year to ¥33,840 million. The order backlog also increased 90.6% to ¥66,140 million, indicating an expanding contribution to overseas revenue in future periods. The effect of consolidated subsidiaries such as Presico Engineering continues.
Completed construction revenue from Renewal Construction rose 26.3% year on year to ¥108,793 million, while the order backlog increased 38.8% to ¥87,984 million. Its share of total completed construction revenue rose from 32.8% to 42.5%, reflecting steady capture of demand for equipment renewal in existing buildings. Expanding demand for the renewal of aging facilities continues to serve as a market tailwind.
From FY2026 (ending March 2026), the company introduced a new dividend policy of a payout ratio of 40% or more with a DOE floor of 4.8%. Total dividends for FY2026 (ending March 2026) amounted to ¥10,849 million (payout ratio of 40.2%), and for FY2027 (ending March 2027) an annual dividend of ¥85 per share (interim ¥42, year-end ¥43) is forecast. This institutionalizes a framework for stable profit distribution.
Last updated: July 19, 2026