Cados Corporation
211A・Standard Market・Construction
Construction Business
Core business handling design and construction of retail stores centered on Yamaguchi and Hiroshima prefectures
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Q3 FY2026 (ending July 2026) cumulative) | ¥2,953 million | ¥4,659 million (same period prior year) | ↓ |
| Segment profit (Q3 FY2026 (ending July 2026) cumulative) | ¥15 million | ¥460 million (same period prior year) | ↓ |
| Sales (full year FY2025 (ended July 2025)) | ¥5,884 million | — | — |
| Segment profit (full year FY2025 (ended July 2025)) | ¥498 million | — | — |
| Construction backlog carried forward to Q4 | ¥2,602 million | ¥1,251 million (up 107.9% year on year) | ↑ |
| Cumulative number of new construction completions (end of FY2025 (ended July 2025)) | 553 projects | — | — |
Business Details
The company primarily designs and constructs retail stores (drugstores, food supermarkets, restaurants, convenience stores, etc.) centered on Yamaguchi and Hiroshima prefectures. Through its proprietary business model, the "Kados LAN System," it matches landowners with tenant companies to secure negotiated (non-bid) orders. It operates as the general contractor, with actual construction work performed by partner companies. The company has set a priority target of expanding orders centered on the rollout of "Kados Town" (suburban mixed-use commercial facilities), while promoting appropriate contract pricing with an emphasis on profitability.
Recent Overview
Construction Business sales fell sharply by 36.6% year on year, with segment profit down 96.7% to ¥15 million
Construction Business sales for the cumulative nine months of FY2026 (ending July 2026) (August 2025 to April 2026) were ¥2,953 million (down 36.6% year on year). The order backlog at the start of the fiscal year had declined by ¥538 million compared with the start of the prior fiscal year, and this was compounded by shifts in construction start timing to the fourth quarter and beyond, resulting in a substantial decline in sales. Despite efforts to set appropriate contract pricing and reduce fixed costs, the impact of the sales decline was significant, and segment profit came to only ¥15 million (down 96.7% year on year). Meanwhile, the construction backlog to be carried forward to the fourth quarter increased substantially to ¥2,602 million (up 107.9% year on year), and a concentration of construction work is expected in the fourth quarter.
Key Products
Growth Drivers
- Continued acquisition of negotiated orders targeting national chains (drugstores, restaurants, etc.) with strong store-opening appetite
- Expansion of orders for large-scale, mixed-use projects through the rollout of Kados Town (suburban mixed-use commercial facilities)
- Expansion of the sales area into the Sanyo corridor (Yamaguchi, Hiroshima, Okayama) and northern Kyushu (around Fukuoka), along with strengthened business tie-ups with local real estate companies
- Capturing recurring demand through the cumulative buildup of managed landowners and new construction completions
- Improved construction capacity through leveling of construction schedules and closer coordination between sales and construction departments
Risks
- Risk that elevated construction material prices and a shortage of skilled labor push up labor costs and construction costs
- Risk that changes or delays in tenant companies' store-opening plans shift construction start timing and cause fluctuations in the timing of sales recognition
- A revenue structure highly dependent on the level of order backlog at the start of the fiscal year
- Risk of economic contraction in Yamaguchi Prefecture, the company's home region, amid population decline (being addressed through expansion into Hiroshima and Fukuoka)
- Risk of sales concentration in specific customers (in FY2025 (ended July 2025), the top two customers were Big-S Co., Ltd. at ¥1,781 million and Cosmos Pharmaceutical Corporation at ¥1,331 million)
Last updated: October 21, 2025