Nishimatsu Construction Co., Ltd. (TSE: 1820), a leading Japanese general contractor, capped its fiscal year ending March 2026 with a powerful set of results, disclosed on May 12, 2026. Consolidated revenue rose 8.0% year-on-year to ¥396,030 million, while operating profit climbed 32.8% to ¥28,029 million, ordinary profit advanced 35.4% to ¥27,384 million, and net profit jumped 37.2% to ¥24,066 million, up from ¥17,543 million a year earlier. Earnings per share rose to ¥609.56 from ¥444.46.
The disproportionate profit growth relative to top-line expansion reflects a favorable project mix and firm construction demand, which lifted the operating margin to roughly 7.1% of revenue. Return on equity reached a healthy 13.1%, underscoring how disciplined execution across the company's core businesses translated into outsized earnings momentum during the period.
Civil engineering and building construction drive the gains
Nishimatsu Construction operates across the full contracting value chain, anchored by a strong civil-engineering franchise — dams, tunnels and large-scale infrastructure — alongside a substantial building-construction business and a real-estate development arm. Margins improved on a more favorable mix of higher-value projects and firm domestic construction demand, with pricing discipline helping to offset persistent input-cost and labor pressures that have weighed on the broader Japanese contracting sector. The combination drove the profit lines well ahead of the modest revenue gain, demonstrating the operating leverage in the group's order book.
Balance sheet stays solid as returns improve
Total consolidated assets stood at ¥686,012 million at year-end, with net assets of ¥204,420 million and an equity ratio of 28.4%. Book value per share was ¥4,936.16. Operating cash flow came in at ¥3,045 million, a relatively modest figure that reflects the heavy working-capital demands typical of a contractor carrying large volumes of work-in-progress across long-duration civil-engineering and building projects. With ROE at 13.1%, the company is generating strong returns on its equity base even as it funds an expanding order pipeline.
Dividend lifted to ¥230; FY2027 guidance points to softer profit
Nishimatsu Construction raised its annual dividend for the year to ¥230.00 per share (¥100 interim + ¥130 year-end), with total dividends of ¥9,129 million and a payout ratio of 37.7%. For the fiscal year ending March 2027, the company plans a further increase to ¥250.00 (¥110 interim + ¥140 year-end), signaling continued confidence in shareholder returns. On the earnings front, however, guidance is more cautious: revenue is forecast to rise 11.1% to ¥440,000 million, but operating profit is seen edging up just 1.7% to ¥28,500 million, with ordinary profit slipping 3.2% to ¥26,500 million and net profit declining 14.8% to ¥20,500 million, equivalent to EPS of ¥519.19. The guided profit pullback — despite higher planned revenue — points to a more conservative margin assumption for the year ahead, even as the dividend continues to climb.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 396,030 | 366,811 | +8.0% |
| Operating profit (¥ million) | 28,029 | 21,098 | +32.8% |
| Ordinary profit (¥ million) | 27,384 | 20,225 | +35.4% |
| Net profit (¥ million) | 24,066 | 17,543 | +37.2% |
| EPS (¥) | 609.56 | 444.46 | +37.2% |
| ROE | 13.1% | — | — |
| Total assets (¥ million) | 686,012 | — | — |
| Net assets (¥ million) | 204,420 | — | — |
| Equity ratio | 28.4% | — | — |
| Annual dividend (¥) | 230.00 | — | — |
| FY2027 guidance — revenue (¥ million) | 440,000 | — | +11.1% |
| FY2027 guidance — operating profit (¥ million) | 28,500 | — | +1.7% |
| FY2027 guidance — net profit (¥ million) | 20,500 | — | −14.8% |
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.