日本国土開発 Research Memo (1): Strong growth in sales and profit achieved in the fiscal year ended May 2026; Medium-Term Management Plan off to a strong start

日本国土開発 is focused primarily on its civil engineering and construction businesses, centered on mechanized construction, while in recent years it has been developing related businesses, including real estate development and energy, and strengthening its end-to-end value chain. Through initiatives involving self-propelled rotary crushing and mixing machines and ICT-enabled construction equipment, the company is pursuing labor savings and shorter construction periods, while positioning its track record in disaster recovery as a strength.

For the fiscal year ended May 2026, net sales rose 9.6% year on year to ¥135,207 million, while operating profit increased 208.4% to ¥7,150 million. The company attributed the results to progress on highly profitable construction projects and improvements in the civil engineering business's earnings structure.

For the fiscal year ending May 2027, the company forecasts net sales of ¥137,000 million, up 1.3% year on year, and operating profit of ¥6,300 million, down 11.9%. Although a reactionary decline is expected in the construction business and the real estate and energy businesses are expected to return to normal levels, earnings improvement in the civil engineering business is expected to continue, and progress under the Medium-Term Management Plan is considered to be on track.

The basic policies of Medium-Term Management Plan 2027 are to prioritize and stabilize profits in the civil engineering business and shift the construction business onto a growth trajectory responsive to the lifecycle of its projects. In its new businesses, the company aims to expand sales of ANION's ADOX powder and establish stable earnings from Fukushima Ecocrete's coal ash recycling business. It is targeting ROE of 8.0%, operating profit of ¥9 billion, total investment of ¥74 billion, and DOE of 3.0%–3.5% for the fiscal year ending May 2028.