TANSEISHA CO.,LTD.

Business Details

This segment, operated by the Company together with Tansei TDC Co., Ltd. and Tansei Display Co., Ltd., covers interior work for commercial facilities other than chain stores—department stores, specialty stores, restaurants, and other commercial properties—as well as offices, hotels, other facilities, and exhibits for expositions and trade shows. Revenue for FY2026 (ending January 2026) was ¥72,154 million, accounting for approximately 67% of consolidated revenue, making it the largest segment. Large-scale new construction and renovation projects related to hotels, entertainment facilities, and the Osaka-Kansai Expo are the main sources of revenue.

Recent Overview

Revenue and profit both declined substantially due to the drop-off of Expo-related revenue. Q1 revenue fell 33.8% year on year.

In Q1 of FY2027 (ending January 2027) (February to April 2026), revenue in the Commercial and Other Facilities Business was ¥16,144 million (versus ¥24,391 million in the same period of the prior year), and segment profit was ¥1,313 million (versus ¥3,766 million in the same period of the prior year), both declining substantially. The main cause was the absence of Expo-related revenue recorded in the same quarter of the prior year, which was recorded for the Osaka-Kansai Expo, and the resulting year-over-year decline was pronounced. Meanwhile, revenue from services transferred over time (based on percentage of completion) was ¥15,409 million, continuing to account for the majority of this segment's revenue.

Key Products

Growth Drivers

• Active new-build and renovation investment in hotels and commercial facilities driven by expanding inbound demand
• Expanding demand for new construction and renovation of entertainment facilities, stadiums, and arenas
• Increasing demand for commercial facilities driven by redevelopment projects in various cities
• Improved profit margins through profitability-focused order-taking activities
• Development of growth foundations and investment in new business areas under the medium-term management plan (FY2025, ending January 2025 – FY2027, ending January 2027)

Risks

• After completion of the Osaka-Kansai Expo, a temporary large-scale project, securing replacement projects of comparable scale is a challenge
• Due to the year-over-year decline stemming from Expo-related revenue recorded in the prior-year quarter, Q1 revenue for the current period fell sharply, down 33.8% year on year
• Cost increase risk from rising material prices and labor costs (fluctuations in subcontracting costs and construction materials)
• Risk of recording provisions for construction contract losses due to uncertainty in estimating total construction costs
• Macro risks such as material shortages stemming from Middle East conditions (currently a minor impact on performance)
• Risk of reduced corporate capital expenditure due to weak consumer sentiment and price increases