TOBISHIMA HOLDINGS Inc.

Business Details

This segment undertakes civil engineering construction contracts and related businesses. Major customers include public sector entities such as the Ministry of Land, Infrastructure, Transport and Tourism and local governments (approximately 57% of FY2026 (ending March 2026) sales) and private companies (approximately 39%). The segment focuses on social infrastructure development including tunnel construction, seismic reinforcement of bridges, and water supply facility development, and is operated by Tobishima Corporation and TOBISHIMA BRUNEI SDN.BHD. In FY2026 (ending March 2026), both completed construction contracts revenue and segment profit declined year-on-year due to delays in construction commencement resulting from delayed consultations on the client side. The backlog of construction contracts stood at ¥123,734 million (as of March 31, 2026), up 5.3% year-on-year, providing high revenue visibility for the coming periods.

Recent Overview

Both completed construction contracts revenue and profit declined year-on-year due to delays in construction commencement caused by delayed client-side consultations.

In FY2026 (ending March 2026), completed construction contracts revenue declined sharply to ¥60,229 million (down 12.3% year-on-year), and segment profit fell to ¥4,371 million (down 20.6% year-on-year). The main cause was delays in construction commencement resulting from delayed consultations on the client side. Meanwhile, orders received recovered to ¥66,489 million (up 12.6% year-on-year), with domestic private-sector orders expanding sharply to ¥41,756 million (up 136.3% year-on-year) in particular. The backlog of construction contracts also increased to ¥123,734 million (up 5.3% year-on-year), laying the groundwork for a recovery in sales from the next period onward. The non-consolidated order forecast for FY2027 (ending March 2027) is ¥68,000 million (up 2.3% year-on-year).

Key Products

Growth Drivers

• High visibility of future revenue supported by a backlog of construction contracts of ¥123,734 million (as of March 31, 2026, up 5.3% year-on-year)
• Diversification of the order mix driven by rapid expansion in domestic private-sector civil engineering orders (orders received of ¥41,756 million in FY2026 (ending March 2026), up 136.3% year-on-year)
• Steady trend in public investment (stable orders from the Ministry of Land, Infrastructure, Transport and Tourism, local governments, etc.)
• Collaboration and synergies with regional construction companies (such as Tachi Construction Co., Ltd.) in anticipation of the expanding infrastructure anti-aging market
• Mid-term order accumulation supported by the non-consolidated order forecast of ¥68,000 million for FY2027 (ending March 2027) (up 2.3% year-on-year)

Risks

• Risk of timing mismatches in recognizing completed construction contracts revenue due to delayed consultations on the client side and delayed construction commencement (materialized in FY2026 (ending March 2026))
• Risk of deteriorating construction profitability due to persistently high labor costs and material/equipment prices
• Risk of construction delays and cost increases due to chronic shortages of skilled construction labor
• Risk from dependence on public sector sales (approximately 57% of sales), exposing the segment to fluctuations in public investment budgets
• Risk of declining orders, geopolitical risk, and foreign exchange risk in overseas construction (Brunei) (backlog shrank to ¥12,902 million)
• Risk to construction profitability and site management associated with the rapid expansion of domestic private-sector orders (backlog of ¥60,793 million)