TOAMI CORPORATION
5973・Standard Market・Metal Products
Business
TOAMI CORPORATION consists of two segments: the "Civil Engineering & Construction Materials Business," which manufactures and sells welded wire mesh, reinforcing bar products, mesh fencing, and similar items, and the "Civil Engineering & Construction Works Business," which handles formwork carpentry, concrete works, land development works, and the like. Domestically, the company itself along with five consolidated subsidiaries—Sumikura Kozai, FD Techno, Watabe Construction, Nakajo Koumuten, and Air'd—conduct business, while overseas, its Vietnamese joint venture SMC TOAMI LLC manufactures and sells wire mesh. The group serves both public civil engineering and private construction customers, and has built a system capable of providing seamless service from materials supply through to construction execution. Founded in 1940, it is a long-established manufacturer listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In its core Civil Engineering & Construction Materials Business, the company manufactures Wire & Bar Processed Products (Welded Wire Mesh, Reinforcing Bar Products) to forecast and sells them to public and private construction sites. Managing the spread between material procurement prices and selling prices is central to profitability, and the company continuously pursues productivity improvements and cost reductions through equipment upgrades. The Civil Engineering & Construction Works Business operates on a build-to-order basis, securing revenue stability by building up its order backlog. Coordination between the two segments enables comprehensive proposals spanning from materials supply to construction execution.
Company Strengths
The company has manufacturing bases in each of its business divisions—Kansai, Chugoku, North Kyushu, South Kyushu, Chubu, and Kanto—and its three construction subsidiaries, Watabe Construction, Nakajo Koumuten, and Air'd (to become a four-company structure in April 2026 with the addition of Arakiji Koumuten), cover the entire country. Through the establishment of the Kyushu Block Head Office and the upgrading of Watabe Construction's Kyushu and Kansai sales offices, the company has built a regionally-focused, agile operating structure.
The company has a structure enabling it to complete both the manufacturing and sale of materials such as welded wire mesh and construction work such as Formwork Carpentry & Concrete Works within the same group. The collaboration between the Kanto Business Division and FD Techno Kanto Plant in Chiba and Arakiji Koumuten enables an integrated proposal from material supply through construction in the greater Tokyo metropolitan area, serving as a differentiating factor from competitors.
In FY2026 (ending March 2026), segment profit for the Civil Engineering & Construction Materials Business was ¥585 million (up 76.8% year on year), with a segment profit margin of 4.3% (an improvement of 2.0 percentage points from 2.3% in the previous period). Despite an environment of persistently high material prices, the company focused on securing sales spreads for each product, achieving a 2.6 percentage point improvement in the cost of sales ratio compared to the previous period.
ENVALITH's Perspective
Performance Trend
Net sales grew approximately 50% over five years, from ¥12,265 million in FY2022 (ending March 2022) to ¥18,392 million in FY2026 (ending March 2026). In FY2026, sales growth was limited to 1.6% year on year, but gross margin improved from 14.2% to 16.8%, and operating profit turned positive, moving from an operating loss of ¥111 million in the previous period to operating profit of ¥216 million. Amid continued external headwinds such as persistently high material prices and gradually rising logistics costs, maintaining sales price levels and improving order unit prices in the construction works business drove the profit recovery. For FY2027 (ending March 2027), the company forecasts net sales of ¥21,000 million (up 14.2% year on year) and operating profit of ¥550 million (up 153.7% year on year).
Growth Strategy
Pursuing sustained revenue growth and higher profitability by strengthening the Group's overall capabilities through four priority initiatives under the Medium-Term Management Plan (2024–2027)
Strengthening the maintenance of sales price levels and management of sales spreads by product across both the Materials and Construction Works segments. Achieved a 4.3% profit margin in the Materials segment in FY2026 (ending March 2026), with improvement in earnings structure underway.
Newly consolidated Aird Co., Ltd. in FY2026 (ending March 2026), expanding net sales in the Civil Engineering & Construction Works Business to ¥4,643 million, up 22.9% year on year. Order intake also expanded sharply, up 128.9% year on year, with the strengthening of the Group's construction framework materializing as concrete results.
Salaries and allowances increased from ¥599 million in the previous fiscal year to ¥655 million, while statutory welfare and benefits expenses also rose from ¥152 million to ¥181 million. Amid chronic labor shortages that constitute an industry-wide challenge, the company continues to invest in personnel costs to secure and retain human resources.
Positioned as one of the basic policies of the Medium-Term Management Plan, though specific numerical targets and progress disclosures in the financial results report remain limited. This initiative is framed as a response to sustainability-related risks.
Last updated: July 19, 2026