日本国土開発 Research Memo (5): Building construction performed better than expected in the fiscal year ended May 2026, driving substantial increases in revenue and profits

日本国土開発 reported net sales of ¥135,207 million (up 9.6% year on year), operating profit of ¥7,150 million (up 208.4%), ordinary profit of ¥6,566 million (up 237.5%), and net income attributable to owners of the parent of ¥5,450 million (up 308.9%) for the fiscal year ended May 2026, substantially exceeding its initial forecasts. Progress on construction projects on hand in the building construction business was steady, while a focus on profitable orders and cost control also contributed.

The building construction business benefited from higher revenue from the completion of large-scale projects, as well as profitable additional construction work. Revenue increased by more than 20%, while operating profit more than tripled. The civil engineering business also returned to profitability as less-profitable projects were replaced with profitable ones and preventive measures became established. Efforts to strengthen the pursuit of orders based on technical proposals and enhance the construction guidance framework also produced results.

In the real estate, energy, and new businesses, the sale of tangible assets and electricity sales revenue progressed as planned, while efforts to secure the profitability of development-oriented projects continued. New businesses, including ANION and 福島エコクリート, also continued to perform steadily.

For the fiscal year ending May 2027, the company forecasts net sales of ¥137,000 million (up 1.3% year on year), operating profit of ¥6,300 million (down 11.9%), ordinary profit of ¥5,700 million (down 13.2%), and net income of ¥4,000 million (down 26.6%). As the second year of its medium-term management plan, the forecast assumes steady progress and takes a cautious approach by factoring in the risks of higher material and labor costs.