DAI-DAN CO., LTD.
1980・Prime Market・Construction
Facility Construction Business (Single Segment)
A comprehensive facility construction company engaged in the design and construction of HVAC & sanitary and electrical facility work
| Period | Current | Previous | Change |
|---|---|---|---|
| Completed construction revenue (net sales) | ¥256,228 million | ¥262,732 million | ↓ |
| Operating profit | ¥34,479 million | ¥23,037 million | ↑ |
| Ordinary profit | ¥35,770 million | ¥23,479 million | ↑ |
| Profit attributable to owners of parent | ¥26,772 million | ¥17,443 million | ↑ |
| Gross profit on completed construction | ¥56,083 million | ¥41,349 million | ↑ |
| Operating margin | 13.5% | 8.8% | ↑ |
| Orders received | ¥353,102 million | ¥281,271 million | ↑ |
| Backlog (period-end) | ¥355,273 million | ¥258,400 million | ↑ |
| ROE (return on equity) | 22.5% | 17.4% | ↑ |
| Equity ratio | 56.2% | 49.7% | ↑ |
| Cash and cash equivalents (period-end balance) | ¥81,925 million | ¥50,552 million | ↑ |
| Earnings per share | ¥207.33 | ¥135.61 | ↑ |
Business Details
The Daidan Co., Ltd. Group operates as a single segment in the facility construction business, encompassing the design, supervision, and construction of HVAC & Sanitary Construction and Electrical Construction. Its primary customers include factories, data centers, medical-related facilities, and redevelopment projects, with operations spanning not only Japan but also overseas markets such as Singapore, Thailand, and Vietnam. In FY2026 (ending March 2026), completed construction revenue came to ¥256,228 million (down 2.5% year on year), a slight revenue decline, but operating profit rose to ¥34,479 million (up 49.7% year on year), reaching a record high level on the back of a significant improvement in gross profit margin on completed construction.
Recent Overview
Despite a slight decline in revenue, accelerating profitability improvements drove both operating profit and net profit to record highs
In FY2026 (ending March 2026), completed construction revenue declined slightly to ¥256,228 million (down 2.5% year on year), but gross profit on completed construction rose substantially to ¥56,083 million (up 35.6% year on year). Improved profitability drove a sharp rise in operating margin to 13.5% (from 8.8% in the prior period). Orders received increased significantly to ¥353,102 million (up 25.5% year on year), and the period-end backlog reached a record high of ¥355,273 million (up 37.5% year on year). Orders in the Electrical Construction segment expanded rapidly, up 94.8% year on year, while overseas construction also grew rapidly, with completed construction revenue up 72.8% year on year. Operating cash flow improved significantly to ¥58,437 million (from ¥12,402 million in the prior period), and while short-term borrowings were reduced by ¥20,125 million, the cash balance increased to ¥81,925 million. The dividend policy was revised to "a payout ratio of 40% or more, with a minimum DOE of 4.8%," and the total dividend amount for FY2026 (ending March 2026) increased to ¥10,849 million (from ¥7,032 million in the prior period). For FY2027 (ending March 2027), the company forecasts completed construction revenue of ¥265,000 million and operating profit of ¥36,000 million.
Key Products
Growth Drivers
- Contribution to next-period results from the rapid expansion of the Electrical Construction segment (orders received up 94.8% year on year, backlog up 108.9%)
- Rapid growth in overseas construction (completed construction revenue up 72.8% year on year, backlog up 90.6%) and the continuing consolidation effect of Presico Engineering
- Expansion of demand for Renewal Construction (completed construction revenue up 26.3% year on year, backlog up 38.8%)
- Improved visibility into next-period performance due to the buildup in period-end backlog to ¥355,273 million (up 37.5% year on year)
- Continued improvement in profitability (rising gross margin on completed construction, significant decrease in provision for losses on construction contracts)
- Continued strong trend in orders for data centers, semiconductor plants, and medical-related facilities
- Enhanced shareholder returns through a strengthened dividend policy (minimum DOE of 4.8%)
Risks
- Constraints on construction capacity due to worsening labor shortages (being addressed through increased hiring and investment in training and education)
- Orders received for Industrial Facility Construction declined 19.8% year on year, posing a risk related to changes in facility plans for large-scale projects
- Uncertainty over U.S. tariffs and foreign exchange rates affecting facility plans for large-scale projects in the industrial facility segment
- Risk of rising costs due to increases in material and equipment prices and labor costs
- A valuation loss on investment securities of ¥570 million was recorded, indicating exposure to fair value fluctuation risk on held securities
- Cash flow risk inherent to the facility construction business, where expenditures precede receipts (increased advance payments on large-scale projects)
- Risk of increased burden on construction management and quality control accompanying the rapid buildup in backlog
- Accounting estimate change risk, as seen in the revision of estimates for asset retirement obligations (¥456 million recorded)
Last updated: June 23, 2026