Nishimatsu Construction booked a first-quarter net profit of ¥4.65bn for the three months to June 2026, up 182% from a year earlier, as consolidated revenue rose 23.8% to ¥102.6bn and operating profit more than doubled to ¥7.0bn. The company attributes the profit jump mainly to improved margins on completed domestic construction work and higher profit from its real-estate business, not simply to a fatter order book.
Orders did rise sharply in their own right. Consolidated construction-order intake nearly doubled to ¥90.4bn, a 99.2% increase. On a standalone basis, the parent company's domestic public-works orders jumped 375.1% to ¥31.6bn, driven by a large government contract booked in the quarter, while domestic private-sector orders rose 51.0% to ¥53.8bn. Overseas orders grew a comparatively modest 54.3% to ¥879mn.
Despite the scale of the quarterly beat, Nishimatsu left its full-year guidance untouched: revenue of ¥440.0bn, operating profit of ¥28.5bn, ordinary profit of ¥26.5bn and net profit of ¥20.5bn, the last of which still implies a 14.8% decline from the prior year. The company's own outlook language explains the caution: tightening labor supply, rising construction-materials and energy costs, and the effects of higher interest rates and inflation on private building investment are all flagged as risks it is watching, alongside instability in the Middle East and oil-price movements.
Segment results show where the quarter's strength, and one soft spot, came from.
| Segment | Revenue | Revenue change | Segment profit or loss | Profit change |
|---|---|---|---|---|
| Civil engineering | ¥30.3bn | +17.8% | ¥1.7bn | +365.8% |
| Building | ¥55.0bn | +16.4% | ¥4.3bn | +95.0% |
| International | ¥9.2bn | +48.7% | Loss of ¥401mn | Loss widened from ¥95mn |
| Environment and urban development | ¥9.1bn | +114.3% | ¥1.0bn | +98.8% |
Civil engineering and building work, both largely domestic, delivered the bulk of the improvement, with the company citing both higher sales and better profit margins in each segment. The international segment kept losing money, and the loss widened to ¥401mn from ¥95mn a year earlier as a building subsidiary's results deteriorated. The newer environment and urban development segment, which combines real-estate sales, rental income, and renewable-energy and urban-development projects, more than doubled its revenue to ¥9.1bn, while segment profit rose 98.8% to ¥1.0bn. Nishimatsu attributes that gain chiefly to an increase in property sales, not to a change in sales margin.
The balance sheet shrank even as its quality improved: total assets fell to ¥651.6bn from ¥686.0bn at the end of March, largely on lower trade receivables, while the equity ratio rose to 29.5% from 28.4%. The annual dividend forecast is unchanged at ¥250 a share, up from ¥230 paid for the year to March 2026, split as an interim payment of ¥110 and a year-end payment of ¥140.
For a reader trying to size up the builder's year, the gap between the quarter's numbers and the annual guide is the thing to watch. Nishimatsu is telling the market that a strong opening quarter, built on domestic margin gains and higher property sales rather than the order surge alone, is not its own template for the nine months that follow.