Ohmori, the Tokyo-listed sewer and water-main contractor, reported sales of ¥8.08bn for the year to July 2026, up 25.3%, but most of the gain stopped at the top line. Operating profit rose only 2.0% to ¥801.0mn, and ordinary profit slipped 0.4% to ¥756.7mn.
Where the profit came from
Net profit attributable to shareholders rose 30.4% to ¥676.1mn. The annual securities report credits a lower tax bill: a write-down on affiliate shares booked in earlier years became deductible for tax purposes, which cut corporate tax sharply.
Construction, the main business, shows the squeeze. Sales rose 22.4% to ¥5.89bn, but gross profit on completed work fell 7.1% to ¥854.8mn. The company points to a mix of renewal work for existing facilities, which earns less than its mechanical pipe-jacking jobs, and unprofitable projects at a subsidiary. Construction orders fell 17.2% to ¥4.90bn, and the order backlog stood at ¥5.83bn.
The Tokyo Metropolitan Government's sewerage bureau accounted for 45.4% of group sales.
The subsidiary exit
On 31 July 2026 Ohmori sold all its shares in that subsidiary, a civil-engineering unit it bought in 2021 and that worked on port, river and bridge projects. The company says it faced fierce bidding, unprofitable jobs and no quick recovery. The sale produced a ¥27.1mn gain. The unit contributed ¥509.2mn of sales and an operating loss of ¥81.8mn before leaving the group.
Next year's numbers
For the year to July 2027, Ohmori forecasts sales of ¥7.27bn and operating profit of ¥742.9mn, an operating margin of 10.21%. Sales are below the ¥7.72bn in its medium-term plan, which the report ties to slow starts on new orders, where underground surveys take time, and to the lost subsidiary revenue. Operating profit is above the plan's ¥723.2mn. This year's margin was 9.92%, against a plan of 9.14%.
Shareholders and governance
The board proposes a ¥12 per share dividend, up from ¥11.5, totalling ¥224.6mn. The proposal, and the election of six non-audit-committee directors (one more than the current five), go to shareholders at the annual meeting on 28 October 2026.
The company's internal control report on financial reporting, filed on 27 October, judges the controls effective as of 31 July 2026. It lists no additional or special matters.