Shimizu Corporation (TSE: 1803), one of Japan's five "super general contractors" (super-zenecon) and a major Tokyo-based construction and engineering firm, posted sharply higher FY2026 results (year ended March 31, 2026) under Japanese GAAP. Consolidated revenue rose 5.8% year-on-year to ¥2,057.8 billion, crossing the ¥2 trillion mark for the first time, while operating profit jumped 67.1% to ¥118.7 billion, ordinary profit climbed 70.7% to ¥122.3 billion, and profit attributable to owners of the parent surged 91.8% to ¥126.6 billion.
Basic EPS rose to ¥186.68 from ¥94.80 a year earlier, comprehensive income soared 462.4% to ¥157.6 billion, and ROE recovered to 13.8% on an operating margin of 5.8%. The earnings rebound was driven chiefly by the recovery in construction project profitability.
Domestic construction margins recover
The core domestic construction segment was the principal earnings driver. Segment revenue rose 7.0% to ¥1,477.4 billion and segment profit jumped 60.7% to ¥90.6 billion, reflecting improved project profitability as cost discipline and better margins on completed works flowed through to the bottom line. After several years of squeezed contractor margins across the Japanese construction sector, the pickup in completed-project profitability marks a notable turnaround for Shimizu.
Net assets cross ¥1 trillion; dividend lifted
Total assets stood at ¥2,654.4 billion, while net assets crossed the ¥1 trillion threshold for the first time at ¥1,001.2 billion. The equity ratio strengthened to 36.8% from 34.1% a year earlier, and book value per share rose to ¥1,439.89. Operating cash flow came to ¥41.6 billion, and cash and equivalents finished the year at ¥354.5 billion.
On the back of the stronger results, Shimizu raised its full-year dividend to ¥72.00 per share (¥22 interim + ¥50 year-end), up from ¥38.00 the previous year, for a payout ratio of 38.6%. For FY2027 the company has indicated a further increase to ¥77.00 per share.
Aomi Construction consolidation adds negative goodwill gain
The FY2026 results included a ¥5,927 million negative goodwill gain tied to the consolidation of Aomi Construction, which was newly brought into the group during the period. The one-off gain contributed to the outsized growth in net profit, though the underlying recovery in core construction profitability remained the dominant factor.
FY27 guidance points to further growth
For FY2027 (ending March 2027), Shimizu forecasts revenue of ¥2,310.0 billion (+12.3%), operating profit of ¥153.0 billion (+28.9%), ordinary profit of ¥148.0 billion (+21.0%), and net profit attributable to owners of ¥130.0 billion (+2.7%), with EPS of ¥191.40. The more measured net-profit growth reflects the absence of the prior year's one-off negative goodwill gain, even as operating and revenue momentum is expected to accelerate.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 2,057.8 | 1,944.4 | +5.8% |
| Operating profit (¥ billion) | 118.7 | 71.0 | +67.1% |
| Ordinary profit (¥ billion) | 122.3 | 71.7 | +70.7% |
| Net profit attrib. to owners (¥ billion) | 126.6 | 66.0 | +91.8% |
| EPS (¥) | 186.68 | 94.80 | +96.9% |
| Operating margin | 5.8% | 3.7% | +2.1pp |
| ROE | 13.8% | 7.5% | +6.3pp |
| Equity ratio | 36.8% | 34.1% | +2.7pp |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.