KUWAZAWA Holdings Corporation
8104・Standard Market・Wholesale Trade
Construction Works
The second core pillar of the group, responsible for construction management of building, interior, and renovation works
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (FY2026 (ending March 2026)) | ¥25,725 million | ¥26,997 million | ↓ |
| Segment Profit (FY2026 (ending March 2026)) | ¥453 million | ¥458 million | ↓ |
| Segment Profit Margin (FY2026 (ending March 2026)) | 1.8% | 1.7% | ↑ |
| Segment Assets (end of FY2026 (ending March 2026)) | ¥16,332 million | ¥16,195 million | ↑ |
| Depreciation (FY2026 (ending March 2026)) | ¥34 million | ¥44 million | ↓ |
| Increase in Tangible and Intangible Fixed Assets (FY2026 (ending March 2026)) | ¥56 million | ¥77 million | ↓ |
Business Details
The Construction Works segment undertakes construction and management of general building works, interior works for stores, buildings, and residences, residential renovation works, and large-scale condominium renovation works (waterproofing and painting). Its primary market is Hokkaido, where it operates broadly from specialized construction as a general contractor subcontractor to materials-related construction accompanying construction materials sales. Kuwazawa Corporation, Kuwazawa Industry Co., Ltd., Sumai no Kuwazawa Co., Ltd., Marusan Shoji Co., Ltd., and Free Stairs Co., Ltd. among others are responsible for the business.
Recent Overview
A decline in large-scale project construction combined with higher expenses led to net sales decreasing 4.7% year on year
In the Construction Works segment for FY2026 (ending March 2026), net sales were ¥25,725 million (down 4.7% year on year), mainly due to a decrease in large-scale project construction in Hokkaido, the primary market. Although efforts were made to secure profit through reductions in cost of sales, segment profit was limited to ¥453 million (down 1.0% year on year) as a result of temporary selling, general and administrative expenses, such as PC replacement and core system analysis costs, similar to the Construction Materials segment. Impairment loss was significantly reduced from ¥161 million in the prior period to ¥2 million.
Key Products
Growth Drivers
- Steady trends in private and public investment in Hokkaido
- Strengthening of the order base through the development and expansion of the construction system
- Expanded efforts in the renovation/renewal market and the large-scale renovation works field
- Expansion of construction capacity through securing of craftsmen and foreign workers
- Strengthening of the large-scale condominium renovation works field through the acquisition of Free Stairs Co., Ltd.
- Profit margin improvement through continued cost of sales reduction measures
Risks
- Risk of decreased orders for large-scale project construction in Hokkaido (materialized in FY2026 (ending March 2026))
- Medium- to long-term declining trend in new housing starts
- Delays in construction commencement due to prolonged review periods stemming from mandatory energy conservation standards and the reduction of the Article 4 exception
- Increased construction costs and constraints on construction capacity due to rising labor costs and labor shortages
- Profit pressure from increased selling, general and administrative expenses (system investment, etc.)
- Risk of schedule delays due to concerns over instability in materials supply
Last updated: June 25, 2026