Hibiya Engineering, Ltd.
1982・Prime Market・Construction
Facility Construction Business
Hibiya Engineering's core segment, providing integrated air conditioning, sanitary, and electrical facility construction.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥86,288 million | ¥80,316 million | ↑ |
| Segment profit | ¥10,110 million | ¥6,707 million | ↑ |
| Segment profit margin | 11.7% | 8.3% | ↑ |
| Orders received | ¥103,906 million | ¥84,066 million | ↑ |
| Segment assets | ¥44,361 million | ¥46,911 million | ↓ |
Business Details
The comprehensive facility construction business operated directly by the Company (Hibiya Engineering, Inc.). It handles planning, design, and construction across the full range of facility systems, including air conditioning, plumbing/sanitary, electrical, and information and communication technology. Net sales of ¥86,288 million account for approximately 91.7% of the Group's consolidated net sales of ¥94,080 million, making it the core segment. Demand has remained firm, driven mainly by data centers and urban redevelopment projects, and orders received expanded significantly to ¥103,906 million, up 23.6% year on year.
Recent Overview
Orders received expanded sharply to ¥103,906 million, up 23.6% year on year, with profit margin improving sharply from 8.3% to 11.7%.
In the Facility Construction Business for FY2026 (ending March 2026), orders received expanded significantly to ¥103,906 million (up 23.6% year on year), supported by robust demand centered on data centers and urban redevelopment. Net sales rose to ¥86,288 million (up 7.4% year on year) as a substantial backlog of carried-over construction projects progressed smoothly. Through improved profitability on completed projects and productivity enhancement initiatives, segment profit rose sharply to ¥10,110 million (up 50.7% year on year), with the profit margin improving substantially from 8.3% to 11.7%. Under the 9th Medium-Term Management Plan (FY2027 (ending March 2027) through FY2029 (ending March 2029)), deepening the renewal business and responding to data center demand are positioned as key priorities.
Key Products
Growth Drivers
- Expansion of orders for large-scale facility construction for data centers and semiconductor-related facilities (orders received of ¥103,906 million, up 23.6% year on year)
- Recognition of sales from progress on urban redevelopment projects
- Improved profitability through better order-stage profitability and enhanced construction efficiency (use of BIM, front-loading, off-site construction)
- Strong visibility into next-period sales supported by a robust order backlog of ¥103,906 million at fiscal year-end
- Capturing growth in the data center market and pursuing a stock-focused regional strategy under the 9th Medium-Term Management Plan (FY2027 (ending March 2027) through FY2029 (ending March 2029))
Risks
- Risk of deteriorating construction profitability due to persistently high materials and equipment prices and rising labor costs
- Risk of constrained construction capacity and project delays due to difficulty securing personnel (engineer shortages)
- Risk of insufficient construction capacity relative to the sharp expansion in orders received (¥103,906 million)
- Customer concentration risk from reliance on major clients for a significant share of sales
- Risk of reduced private-sector capital investment due to disruption of the international economic order stemming from US trade policy and similar factors
Last updated: July 16, 2026