PS Construction (1871): FY2025 Results Summary — Record Profits for a Second Straight Year on Revenue of 149,370 Million Yen

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: PS Construction does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. Note also that the company labels this fiscal year as the year ended March 31, 2026 (FY26/03), whereas this site classifies the most recent completed fiscal year as FY2025; the source’s own period labels are retained in the text, tables and slide captions below.

PS Construction’s consolidated results for the fiscal year ended March 31, 2026 (full year) were orders received of 148,711 million yen (change versus the previous year of 4.6%), revenue of 149,370 million yen (10.1%), operating profit of 12,932 million yen (5.0%) and net income attributable to owners of parent of 9,328 million yen (13.5%). The materials state that every profit line from gross profit downward set a record high for the second consecutive year. The annual dividend per share was raised by 40 yen from the 80 yen announced at the start of the year, to 120.0 yen. For the fiscal year ending March 31, 2027, the company expects orders received of 141,350 million yen, revenue of 142,600 million yen and net income attributable to owners of parent of 7,800 million yen.

Consolidated Results (FY26/03 Actual)

Orders received rose to 148,711 million yen (change versus the previous year of 4.6%) on an increase in the civil engineering business. Revenue was 149,370 million yen (10.1%), reflecting progress on the order backlog and the securing of design changes. Gross profit was 24,754 million yen (7.5%, gross profit margin of 16.6%) on backlog progress, design changes secured and cost improvements; operating profit was 12,932 million yen (5.0%, operating margin of 8.7%); ordinary profit was 12,717 million yen (3.8%, ordinary profit margin of 8.5%); and net income attributable to owners of parent was 9,328 million yen (13.5%, 6.2%).

In the analysis of the change in ordinary profit, against 12,252 million yen in the previous year, the increase in gross profit from higher revenue, design changes secured and cost improvements added +1,721 million yen; selling, general and administrative expenses from higher personnel and DX-related costs came to -1,104 million yen; non-operating income from higher interest and dividend income added +17 million yen; and non-operating expenses from higher interest paid and guarantee fees came to -169 million yen, bringing the current year to 12,717 million yen.

Item	FY26/03 (Actual)	FY25/03 (Actual)	Change vs. Previous Year
Orders received (million yen)	148,711	142,115	4.6%
Revenue (million yen)	149,370	135,627	10.1%
Gross profit (million yen)	24,754	23,032	7.5%
Gross profit margin	16.6%	17.0%	Not disclosed
Operating profit (million yen)	12,932	12,315	5.0%
Operating margin	8.7%	9.1%	Not disclosed
Ordinary profit (million yen)	12,717	12,252	3.8%
Ordinary profit margin	8.5%	9.0%	Not disclosed
Net income attributable to owners of parent (million yen)	9,328	8,217	13.5%

Segment Results

In the civil engineering business, orders received increased year on year to 85,948 million yen (change versus the previous year of 22.9%), driven by continuing work on large-scale renewal and repair projects and by orders for newly built bridges (expressways and railways). On the smooth progress of an ample order backlog and the securing of design changes on expressway-related work, revenue of 75,814 million yen (10.5%) and gross profit of 14,162 million yen (7.5%) also both increased year on year.

In the building construction business, orders received were 53,011 million yen (-10.1%), reflecting a reaction to the previous year and slippage in order timing as some private-sector customers reviewed their business plans. Revenue and gross profit, on the other hand, rose on the smooth progress of work carried over from the previous fiscal year, to revenue of 62,905 million yen (19.0%) and gross profit of 5,952 million yen (16.3%). For the affiliated companies business, the commentary in the materials cites lower revenue and profit at Kameda Gumi, Ryoken Kiso and an overseas subsidiary, with gross profit of 4,488 million yen (-4.8%).

Metric	Segment	FY26/03 (Actual)	FY25/03 (Actual)	Change vs. Previous Year
Orders received (million yen)	Civil engineering business	85,948	69,946	22.9%
Orders received (million yen)	Building construction business	53,011	58,986	-10.1%
Orders received (million yen)	Affiliated companies business	23,504	29,432	-20.1%
Orders received (million yen)	Other business	389	403	-3.5%
Orders received (million yen)	Consolidation adjustments	-14,141	-16,653	Not disclosed
Orders received (million yen)	Total	148,711	142,115	4.6%
Revenue (million yen)	Civil engineering business	75,814	68,599	10.5%
Revenue (million yen)	Building construction business	62,905	52,857	19.0%
Revenue (million yen)	Affiliated companies business	24,925	25,650	-2.8%
Revenue (million yen)	Other business	406	403	0.6%
Revenue (million yen)	Consolidation adjustments	-14,681	-11,883	Not disclosed
Revenue (million yen)	Total	149,370	135,627	10.1%
Gross profit (million yen)	Civil engineering business	14,162	13,168	7.5%
Gross profit (million yen)	Building construction business	5,952	5,116	16.3%
Gross profit (million yen)	Affiliated companies business	4,488	4,715	-4.8%
Gross profit (million yen)	Other business	126	120	5.4%
Gross profit (million yen)	Consolidation adjustments	24	-88	Not disclosed
Gross profit (million yen)	Total	24,754	23,032	7.5%

Financial Position and Cash Flow

Total assets at the end of March 2026 were 142,464 million yen, an increase of 11,627 million yen from the end of the previous fiscal year. Notes receivable and electronically recorded monetary claims together with accounts receivable from completed construction contracts and contract assets rose to 96,159 million yen (an increase of 21,089 million yen) in line with construction progress, while cash and deposits fell to 9,343 million yen (a decrease of 12,756 million yen). Total liabilities were 76,977 million yen (an increase of 4,021 million yen), with short-term borrowings of 18,360 million yen (an increase of 4,500 million yen) and long-term borrowings of 9,940 million yen (an increase of 5,240 million yen). Total net assets were 65,486 million yen (an increase of 7,605 million yen). On cash flow, operating cash flow was -17.4 billion yen, investing cash flow -0.5 billion yen, free cash flow -17.9 billion yen and financing cash flow 5.2 billion yen, leaving cash and equivalents at 9.3 billion yen.

FY27/03 Full-Year Forecast

For the fiscal year ending March 31, 2027, the company forecasts orders received of 141,350 million yen (change versus the previous year of -5.0%), revenue of 142,600 million yen (-4.5%), gross profit of 23,000 million yen (-7.1%), operating profit of 10,800 million yen (-16.5%), ordinary profit of 10,600 million yen (-16.6%) and net income attributable to owners of parent of 7,800 million yen (-16.4%). The materials state that net income is expected to exceed the target for the final year of the medium-term management plan.

By segment, orders received are forecast at 69,000 million yen for the civil engineering business, 58,000 million yen for the building construction business, 13,950 million yen for affiliated companies and 400 million yen for other business. Revenue is forecast at 72,000 million yen for civil engineering, 57,600 million yen for building construction, 12,600 million yen for affiliated companies and 400 million yen for other business. Gross profit is forecast at 12,750 million yen for civil engineering, 6,340 million yen for building construction, 3,800 million yen for affiliated companies and 110 million yen for other business. The commentary in the materials notes that orders received in the civil engineering business face a reaction to the multiple large projects won in the previous year, that civil engineering gross profit faces a reaction to the substantial design changes and cost improvements of the previous year, and that building construction is expected to see a higher margin because low-margin work was completed in the previous year. In addition, the order backlog on a non-consolidated basis at the end of March 2026 stood at 186.2 billion yen, which the materials describe as a record-high level, comprising 138.5 billion yen in the civil engineering business and 47.7 billion yen in the building construction business.

Item	FY27/03 (Forecast)	FY26/03 (Actual)	Change vs. Previous Year	FY2027 Target (Medium-Term Plan 2025)
Orders received (million yen)	141,350	148,711	-5.0%	N.A
Revenue (million yen)	142,600	149,370	-4.5%	150,000
Gross profit (million yen)	23,000	24,754	-7.1%	23,300
Operating profit (million yen)	10,800	12,932	-16.5%	10,600
Ordinary profit (million yen)	10,600	12,717	-16.6%	10,600
Net income attributable to owners of parent (million yen)	7,800	9,328	-16.4%	7,000

Shareholder Returns

The dividend per share for the fiscal year ended March 31, 2026 was set at 40.0 yen at the interim and 120.0 yen for the full year. The annual dividend was raised by 40 yen from the 80 yen announced at the start of the year. The dividend payout ratio was 60.2%, achieving the Medium-Term Management Plan 2025 target of 60% or higher. For the fiscal year ending March 31, 2027, the company plans a dividend per share of 50.5 yen at the interim and 101.0 yen for the full year.

Item	FY27/03 (Forecast)	FY26/03 (Actual)	FY25/03 (Actual)
Dividend per share, interim (yen and sen)	50.5	40.0	22.0
Dividend per share, annual (yen and sen)	101.0	120.0	72.0
Dividend payout ratio	Not disclosed	60.2%	Not disclosed

Progress of Medium-Term Management Plan 2025

Progress in the fiscal year ended March 31, 2026 comprised ROE of 15.1% (target of 10.0% or higher), an equity ratio of 46.0% (target of a range of 40 to 50%), a D/E ratio of 0.43 times (target of 0.5 times or below), PBR of 1.93 times (target of 1.0 times) and a dividend payout ratio of 60.2% (target of 60% or higher); the materials state that all of the Medium-Term Management Plan 2025 targets were achieved for the financial indicators.

In the civil engineering business, the company secured 27.8 billion yen of orders in fiscal 2025 large-scale renewal and repair projects, for a share of 15%, and states that it has maintained a position contending for the top share of orders every year. It expects large-scale renewals by the expressway companies to trend downward in fiscal 2026, while a certain market is anticipated for large-scale repair work. In the building construction business, it received multiple orders for large precast prestressed concrete (PCaPC) projects at defense facilities, and states that large defense-facility projects will contribute substantially to revenue from fiscal 2026 onward. On the technology side, “steamless precast concrete” (SLPC), which removes the need for steam curing during manufacturing, was adopted for the first time in a Ministry of Land, Infrastructure, Transport and Tourism bridge project, cutting CO2 emissions from member manufacturing at the plant by approximately 12%.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.