The Takigami Steel Construction Co.,Ltd.
5918・Standard Market・Metal Products
Business
Takigami Steel Construction Co., Ltd. is a steel structure specialist founded in 1937, whose core business encompasses the design, fabrication, and construction of bridges, steel frames, and steel structures. The group comprises the Company along with 7 subsidiaries and 1 affiliate, and operates the Steel Structure Manufacturing Business (completed construction revenue of ¥20,697 million) as its flagship segment, alongside the Real Estate Leasing Business (net sales of ¥1,044 million), the Materials Sales Business (external sales of ¥1,449 million), and the Transportation Business (net sales of ¥630 million). Major customers include public sector clients such as the Ministry of Land, Infrastructure, Transport and Tourism, West Nippon Expressway Company, and Central Nippon Expressway Company, with the top 3 clients accounting for approximately 47% of net sales. The Company is listed on the Tokyo and Nagoya Stock Exchanges, with its head office located in Handa City, Aichi Prefecture.
Business Model
In the Steel Structure Manufacturing Business, the company undertakes bridge and steel frame construction works on a made-to-order basis, securing profit through the acquisition of design changes and improved profitability in maintenance works. The Real Estate Leasing Business generates stable rental income (operating margin exceeding 53%) from rental condominiums, land leasing, and other properties. The Materials Sales Business supplies processed steel plate, rebar, and other materials both within and outside the group, while the Transportation Business handles intra-group product transportation while also expanding external transportation services. The order backlog of ¥30,319 million provides structural support for medium-term sales.
Company Strengths
As of the end of FY2026 (ending March 2026), the order backlog of the Steel Structure Manufacturing Business reached ¥30,319 million (Bridges ¥28,859 million; Steel Frames ¥1,460 million), equivalent to approximately 1.5 years of the fiscal year's completed construction revenue of ¥20,697 million. This order backlog enhances medium-term revenue visibility and also contributes to stabilizing factory utilization and transportation demand.
The Real Estate Leasing Business boasts revenue of ¥1,044 million against operating profit of ¥553 million, achieving an operating margin exceeding 53%, contributing to the stabilization of the Group's overall earnings. A newly constructed rental condominium acquired in the previous fiscal year contributed for a full year, resulting in a 15.3% year-on-year profit increase. It functions as a buffer that mitigates fluctuations in the performance of the Steel Structure Manufacturing Business.
In FY2026 (ending March 2026), the Bridge Division's acquisition of design changes for ongoing construction projects contributed significantly to profitability, resulting in a turnaround from an operating loss of ¥5,400 million in the previous fiscal year to operating profit of ¥320 million. Gross profit on completed construction contracts rose 48.1% year on year to ¥2,577 million, confirming the division's design-change response capability and profitability management of maintenance works as demonstrated results.
ENVALITH's Perspective
Performance Trend
Net sales expanded rapidly from ¥14,678 million in FY2022 to ¥23,328 million in FY2024, then flattened out at ¥23,840 million and ¥23,434 million in FY2025 and FY2026, respectively. In FY2025, the company posted an operating loss of ¥389 million due to a large provision for losses on construction contracts, but in FY2026 operating profit recovered to ¥482 million, driven by improved profitability in maintenance works and a significant contribution from design changes. Ordinary profit of ¥1,409 million was substantially boosted by dividend income of ¥849 million (derived from the investment securities portfolio). Meanwhile, with orders for steel road bridges falling to a record-low level (an external factor), order intake plunged 44.3% year on year to ¥13,407 million, and the company's forecast for FY2027 (ending March 2027) calls for net sales of ¥23,500 million and operating profit of ¥200 million, suggesting renewed pressure on profitability. Operating cash flow fell sharply to ¥210 million from ¥3,620 million in the prior period, raising concerns about a decline in cash-generating capacity.
Growth Strategy
Toward the final year of the Fifth Medium-Term Management Plan, the company is rebuilding its earnings base centered on bridge maintenance, diversification of order-receiving regions, maximization of real estate income, and DX promotion
The company aims to reliably secure design changes on ongoing projects and win orders for large-scale maintenance works. It is expanding beyond its core focus on the Chubu region in terms of both geographic scope and client base, while strengthening research capabilities and technical proposal capabilities for order content not limited to steel bridges. In FY2026 (ending March 2026), improved earnings from maintenance works significantly boosted performance, confirming the effectiveness of these measures.
The company is promoting the strengthening of assigned engineers through internal transfers, hiring of experienced personnel, and utilization of foreign human resources. A shortage of engineers has been the main cause of declining order opportunities for Bridge Maintenance Works, and securing personnel is a prerequisite for order recovery. In FY2026 (ending March 2026), the decline in order opportunities due to engineer shortages continued, and resolution is expected to take time.
The company is actively promoting collaborative projects with group companies to improve overall capability across all processes—drafting, manufacturing, transportation, and on-site construction—and to enhance customer trust. It is pursuing improved profitability through thorough budget-to-actual management for each project, more precise cost management, and reduction of non-conformities. Orders received in the Steel Frame division remained difficult at ¥2,119 million, down 52.1% year on year.
The company strives to maintain and improve occupancy rates through steady implementation of anti-aging measures for properties, aiming for further improvement in profitability. In FY2026 (ending March 2026), the business achieved net sales of ¥1,044 million and operating profit of ¥553 million, both up year on year, functioning as a stable source of income for the group. The newly constructed rental condominium acquired in the previous fiscal year contributed for a full year, progressing as planned.
The company places priority on a smooth business transition to the new core system, conducting test operations in FY2026 (ending March 2026) in preparation for full operation in FY2027 (ending March 2026). It continues to promote practical DX initiatives and the development of an information security framework, aiming to improve operational efficiency and management precision.
The company has revised the numerical targets of the Fifth Medium-Term Management Plan, whose final year is the current fiscal year. In light of structural challenges such as a deteriorating order environment, labor shortages, and rising construction costs, it is working to build a sustainable earnings base through thorough cost management and optimization of its construction and manufacturing systems. The forecast for FY2027 (ending March 2026) is net sales of ¥23,500 million and operating profit of ¥200 million.
Last updated: July 19, 2026