Takamatsu Construction Group (1762): FY2025 Results Summary — Record Orders and Sales, Operating Profit Up 56.2%

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

Note: Takamatsu Construction Group labels the fiscal year covered here as the “FY ended March 2026”; on this site the most recently completed fiscal year is classified as FY2025, and the labels used in the text, tables and segment data below follow the company’s own materials. Takamatsu Construction Group Co.,Ltd (1762) reported growth in every headline item for the fiscal year ended March 2026, with orders received, net sales, operating profit and ordinary profit all reaching record highs. Orders received rose 11.4% to 4,360 (100 million yen) and net sales rose 3.2% to 3,576, while operating profit increased 56.2% to 178 and profit attributable to owners of parent rose 77.1% to 114. Because profit attributable to owners of parent of 11.4 billion yen exceeded the 7.8 billion yen forecast announced on May 14, 2025, the annual dividend per share was raised by 40 yen from the previously announced 90 yen to 130 yen.

Consolidated Results (Full-Year Actual)

Figures in the table below are stated in 100 million yen, as presented in the company’s materials. The materials note that all items increased year on year, with profit attributable to owners of parent reaching 11.4 billion yen, and that orders received, net sales, operating profit and ordinary profit reached record highs.

Item	FY ended March 2026	FY ended March 2025	+/-
Orders received	4,360	3,913	+11.4%
Net sales	3,576	3,466	+3.2％
Gross profit	551	446	+23.7％
Gross profit %	15.4％	12.9%	+2.5pt
Operating profit	178	114	+56.2％
Operating profit %	5.0％	3.3%	+1.7pt
Ordinary profit	175	106	+64.9％
Ordinary profit %	4.9％	3.1%	+1.8pt
Profit attributable to owners of parent	114	64	+77.1％
Profit attributable to owners of parent %	3.2％	1.9%	+1.3pt

On the drivers of the change in operating profit, the materials state that gross profit increased by 10.5 billion yen year on year, led by substantial increases at Takamatsu Corporation and Asunaro Aoki Construction despite a decrease at Toko Geotech, while SG&A expenses increased by 4.1 billion yen, primarily due to higher costs at Takamatsu Corporation, Asunaro Aoki Construction, the newly established Takamatsu Development and the holding company. Overall operating profit increased by approximately 6.4 billion yen year on year.

Segment Results

Segment figures are stated in million yen. Orders received grew across all segments: Architecture +6.9%, helped by large-scale projects such as data centers and logistics facilities at Asunaro Aoki Construction; Civil Engineering +20.9%, driven by steady public sector orders at Asunaro Aoki Construction and increased private land-based projects at Mirai Construction; and Real Estate +11.7%, led by robust demand for detached housing in Tokyo’s 23 wards at Takamatsu House. On net sales, Architecture rose 6.0%, Civil Engineering was down 0.7% and Real Estate rose 2.3%. In operating profit, Architecture increased approximately 3 times year on year, Civil Engineering rose 10.8% and Real Estate decreased 15.4%.

Segment	Metric	2026/3	2025/3
Architecture	Orders received	223,648	209,298
Civil Engineering	Orders received	119,665	99,008
Real Estate	Orders received	92,784	83,070
Group Total (Consolidated)	Orders received	436,098	391,378
Architecture	Net sales	172,838	163,044
Civil Engineering	Net sales	100,736	101,399
Real Estate	Net sales	84,100	82,241
Group Total (Consolidated)	Net sales	357,675	346,685
Architecture	Gross profit	30,542	20,800
Civil Engineering	Gross profit	13,021	11,998
Real Estate	Gross profit	11,632	11,827
Group Total (Consolidated)	Gross profit	55,196	44,626
Architecture	Operating profit	12,465	3,778
Civil Engineering	Operating profit	6,514	5,876
Real Estate	Operating profit	6,084	7,188
Consolidation Adjustment	Operating profit	(7,166)	(5,383)
Group Total (Consolidated)	Operating profit	17,897	11,460

Results by Core Operating Company

Figures for individual companies include transactions between group companies and are stated in million yen. On operating profit, the materials state that Takamatsu Corporation rose 31.9% year on year on higher net sales, gross profit and gross margin; Asunaro Aoki Construction recovered from the previous fiscal year, which included unprofitable projects, and posted an operating profit of 3.4 billion yen; Mirai Construction rose 19.3%; Toko Geotech declined 48.0%; Takamatsu House rose 29.7% as it recovered from the previous inventory adjustment phase and benefited from strong sales; and other group companies outside the five core subsidiaries declined 9.1%.

Company	Metric	2026/3	2025/3
Takamatsu Corporation (non-consolidated)	Orders received	134,656	120,355
Asunaro Aoki Construction (non-consolidated)	Orders received	132,404	108,845
Mirai Construction (non-consolidated)	Orders received	44,602	38,294
Toko Geotech (non-consolidated)	Orders received	19,808	20,887
Takamatsu House (non-consolidated)	Orders received	45,252	36,363
Others (non-consolidated)	Orders received	88,924	75,542
Consolidation Adjustment	Orders received	(29,548)	(8,908)
Group Total (Consolidated)	Orders received	436,098	391,378
Takamatsu Corporation (non-consolidated)	Net sales	108,103	99,090
Asunaro Aoki Construction (non-consolidated)	Net sales	91,024	92,459
Mirai Construction (non-consolidated)	Net sales	31,795	31,827
Toko Geotech (non-consolidated)	Net sales	20,655	21,114
Takamatsu House (non-consolidated)	Net sales	37,517	35,329
Others (non-consolidated)	Net sales	81,575	76,849
Consolidation Adjustment	Net sales	(12,994)	(9,983)
Group Total (Consolidated)	Net sales	357,675	346,685
Takamatsu Corporation (non-consolidated)	Operating profit	8,399	6,366
Asunaro Aoki Construction (non-consolidated)	Operating profit	3,429	(1,832)
Mirai Construction (non-consolidated)	Operating profit	1,344	1,126
Toko Geotech (non-consolidated)	Operating profit	601	1,156
Takamatsu House (non-consolidated)	Operating profit	2,082	1,605
Others (non-consolidated)	Operating profit	7,453	8,201
Consolidation Adjustment	Operating profit	(5,411)	(5,162)
Group Total (Consolidated)	Operating profit	17,897	11,460

The order backlog carried forward to the next term also expanded. On a consolidated basis it rose 16.3% year on year to 559,500 million yen from 481,078 million yen, with Takamatsu Corporation at 255,604 million yen (+11.6%), Asunaro Aoki Construction at 219,090 million yen (+23.3%), Mirai Construction at 52,565 million yen (+32.2%), Toko Geotech at 12,110 million yen (down 6.5%) and Takamatsu House at 11,267 million yen (+219.1%).

Next-Year Forecast

Based on the results for the fiscal year ended March 2026, the company revised its targets for the fiscal year ending March 2027 from the figures announced in its mid-term business plan, setting an increase of 10 billion yen in orders received, 2 billion yen in operating profit and 2.5 billion yen in profit attributable to owners of parent. The operating margin target is 5.0%, aiming to maintain the same level as the fiscal year ended March 2026. The materials note that the current plan does not incorporate the impact of soaring crude oil prices resulting from the recent escalation of tensions in the Middle East, as the future outlook remains uncertain. Figures below are in 100 million yen.

Item	FY ending March 2027 (Revised Plan)	FY ended March 2026 (Actual)
Orders received	4,500	4,360
Net sales	4,000	3,576
Operating profit	200	178
Profit attributable to owners of parent	125	114

By core operating company, the materials state that Takamatsu Corporation aims to maintain current levels (flat year on year); Asunaro Aoki Construction targets an operating margin of 5.0% (+1.2pt YoY); Mirai Construction assumes a 0.4pt decrease, a conservative outlook following an exceptional concentration of high-margin projects in the fiscal year ended March 2026; Toko Geotech aims for a recovery to 5.5%, the level of the fiscal year ended March 2025; and Takamatsu House plans a slightly conservative 0.4pt decline due to potential interest rate fluctuations, despite strong demand in prime Tokyo locations.

Shareholder Returns

The dividend policy for the mid-term management plan period (FY ended March 2026 to FY ending March 2028) is progressive dividends with no dividend cuts, a minimum annual dividend per share of 90 yen and a target dividend payout ratio guideline of 40%, with profit returns linked to business performance. For the fiscal year ended March 2026 the annual dividend per share was 130 yen, an increase of 40 yen from the previously announced forecast of 90 yen, reflecting profit attributable to owners of parent of 11.4 billion yen against the 7.8 billion yen forecast announced on May 14, 2025. For the fiscal year ending March 2027 the company plans an annual dividend of 144 yen per share, a payout ratio of 40.1%, following an upward revision of its forecast for profit attributable to owners of parent for that year from 10.0 billion yen in the mid-term business plan to 12.5 billion yen. The previous shareholder return policy had a lower limit of 70 yen with progressive dividends.

Medium-Term Plan and Topics

The mid-term business plan sets out a strategy to expand the group’s business scope into more profitable upstream and downstream areas of the construction and real estate value chain while continuing to grow the core construction contracting business. During the fiscal year the group established Takamatsu Development, dedicated to real estate development, in July 2025, and reported increased net sales and operating profit across all areas of the value chain. Net sales by value area were 1,020 (100 million yen) upstream, 2,720 for construction contracting and 460 downstream in the 2028/3 plan, against 798 / 2,368 / 411 in 2026/3 actual and 765 / 2,310 / 391 in 2025/3 actual, while operating profit by value area was 65 / 155 / 40 in the 2028/3 plan, 61 / 114 / 39 in 2026/3 actual and 51 / 51 / 33 in 2025/3 actual.

Other topics disclosed in the materials include the December 2025 joint investment with a local partner in a townhouse-style condominium project on the U.S. East Coast, the group’s first real estate development venture there, with completion expected in the summer of 2027; the establishment of Takamatsu Philippine Corporation on May 4, 2026 with capital of PHP 150,000,000, wholly owned by Takamatsu Corporation; the completion in April 2026 of the mixed-use development “Geo Tower Osaka Juso”; a contract for “ITM01”, the first phase of the Kyotanabe hyperscale data center, with a contract amount of 15.8 billion yen and a construction period from February 3, 2026 to March 31, 2028; and an order for the large-scale logistics cold storage warehouse “LOGI’Q Hiroshima” (provisional name) with a contract amount of 20.75 billion yen for the entire joint venture. Takamatsu House reached 37.5 billion yen in net sales and 2 billion yen in operating profit within seven years of its establishment in 2019.

On non-financial targets, the group reported 95 overseas human resources against a plan of 70 for 2026/3, a 4.1% share of women in management positions, a paternity leave uptake rate of 61.5% against a plan of 50.0%, an employee engagement score of 48.9 against a plan of 48.0, a paid leave utilization rate of 62.1% against a plan of 70.0%, and 5 group companies certified as Health and Productivity Management Outstanding Organizations, in line with the plan.

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.