# PENTA-OCEAN CONSTRUCTION CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第76期(2025/04/01－2026/03/31) (S100YF3Y)
> Page: https://vizora.meequs.com/en/company/penta-ocean-construction
> Retrieved: 2026-09-30T19:38:28.189Z

## Company

Penta-Ocean Construction, founded in 1950, is a company in Real Estate Development & Leasing listed on TSE Prime. It has 3,991 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | PENTA-OCEAN CONSTRUCTION CO.,LTD. |
| Ticker | 1893 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1893.T) |
| Listing | TSE Prime |
| Head office | 東京都文京区後楽二丁目2番8号 |
| Representative (per filing) | 代表取締役社長 清水琢三 |
| Founded | Apr 1950 |
| Share capital | ¥30.4B |
| Employees (consolidated) | 3,991 |
| Average salary (parent only) | ¥9.4M |
| Fiscal year end | March |
| Website | www.penta-ocean.co.jp (https://www.penta-ocean.co.jp/) |
| Corporate number | 1010001000006 |
| EDINET | E00086 |
| Industries (Vizora) | Real Estate Development & Leasing, General Contractors |

> Profile source: annual securities report (S100YF3Y, filed 2026-06-19). As of filing

## Five-axis industry profile

Primary industry: General Contractors (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 89.9 | 84 |
| Profitability | 51.6 | 92 |
| Cash conversion | 69.8 | 91 |
| Efficiency | 53.8 | 92 |
| Financial strength | 23.3 | 15 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 41% of Penta-Ocean Construction's sales come from Domestic engineering, with Domestic construction and Overseas construction making up much of the rest.
- Out of every ¥100 of sales, about ¥7 is left as operating profit.
- Revenue changed +9.2% from the prior year, operating profit +154.9%.

## Company structure

- Segment revenue mix: Domestic engineering 41.0%、Domestic construction 34.4%、Overseas construction 22.9%、Other 1.7%
- Revenue → net income: ¥794306000000 → ¥34647000000
- Net income → operating cash flow: ¥34647000000 → ¥68392000000（difference ¥33745000000）
- Main uses of operating cash flow: CapEx ¥95942000000 / dividends ¥8093000000 / buybacks ¥10012000000
- Change in cash: ¥14649000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥794.3B |  |
| Operating income | ¥55.3B | Margin 7.0% |
| Net income | ¥34.7B | Margin 4.4% |
| Free cash flow | -¥27.6B |  |
| Largest business | Domestic engineering | of segment revenue 41.0% |
| Employees (consolidated) | 3,991 |  |
| EPS | ¥114.49 |  |
| Book value per share | ¥591.63 |  |
| Equity ratio | 25.1% |  |
| Shares outstanding | 286,013,000 |  |
| Treasury shares | 12,058,500 |  |
| Shareholders | 64,478 |  |
| Average salary (parent only) | ¥9.4M | Filing company only |
| Cash ratio | 9.0% | Net cash -¥104.8B · Cash ÷ revenue 9.0% |
| Vs. industry median margin | +0.1 pp | General Contractors |
| ROE | 21.0% | Derived from disclosed figures |
| ROA | 4.8% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 1.2× dividends
- FY2026, one segment accounts for 69% of positive segment profit
- FY2026, segment profit share differs by 28 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥471058000000 | ¥794306000000 | +68.6% |
| Operating income | ¥30460000000 | ¥55304000000 | +81.6% |
| Operating margin | 6.5% | 7.0% | +0.5 pp |
| Employees | 3,565 people | 3,991 people | +11.9% |
| Cash and equivalents | ¥59197000000 | ¥71435000000 | +20.7% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 国内土木事業 → 国内土木事業 | 41.0% |
| 国内土木事業 → 事業再編・廃止 | 1.2% |
| 国内建築事業 → 国内建築事業 | 30.7% |
| 海外建設事業 → 海外建設事業 | 22.9% |
| 海外建設事業 → 事業再編・廃止 | 3.0% |
| その他 → その他 | 1.2% |
| 新設・再編 → 国内建築事業 | 3.8% |
| 新設・再編 → その他 | 0.4% |

Segment revenue source references: 8 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Domestic engineering | 5 years | +10.4% | ¥325887000000 | 12.3% | 2 |
| Domestic construction | 5 years | +13.6% | ¥273431000000 | 6.1% | 2 |
| Overseas construction | 5 years | +8.3% | ¥181814000000 | -1.8% | 2 |
| Other | 5 years | +18.3% | ¥13173000000 | 11.6% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 794,306 | 100.0% | S100YF3Y |
| Cost of revenue | 710,972 | 89.5% | S100YF3Y |
| Gross profit | 83,333 | 10.5% | S100YF3Y |
| SG&A | 28,029 | 3.5% | S100YF3Y |
| Operating income | 55,304 | 7.0% | S100YF3Y |
| Ordinary income | 53,195 | 6.7% | S100YF3Y |
| Pretax income | 52,490 | 6.6% | S100YF3Y |
| Income tax | 17,843 | 2.2% | S100YF3Y |
| Net income | 34,647 | 4.4% | S100YF3Y |
| Net income attributable to owners | 34,692 | 4.4% | S100YF3Y |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 89 |
| SG&A | 4 |
| Operating income | 7 |
| (Ref.) Net income | 4 |

### Margin funnel

Gross margin 10.5% → Operating margin 7.0% → Net margin 4.4%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +9.2%; Core profit growth: +154.9%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 16.86×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 727,491 | 794,306 | 66,815 | +9.2% |
| Gross profit | 47,581 | 83,333 | 35,752 | +75.1% |
| Operating income | 21,697 | 55,304 | 33,607 | +154.9% |
| Net income attributable to owners | 12,460 | 34,692 | 22,232 | +178.4% |
| Operating cash flow | -23,331 | 68,392 | 91,723 | — |
| Free cash flow | -61,482 | -27,550 | 33,932 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 573,842 | 33,161 | 5.8% | 23,352 | 4,444 | -5,292 | S100LOJE |
| FY ending Mar 2021 | 471,058 | 30,460 | 6.5% | 20,993 | 30,690 | 19,649 | S100OPN0 |
| FY ending Mar 2022 | 458,231 | 15,939 | 3.5% | 10,753 | -7,687 | -16,344 | S100R58A |
| FY ending Mar 2023 | 502,206 | 4,119 | 0.8% | 684 | 19,689 | 9,575 | S100TRIE |
| FY ending Mar 2024 | 617,708 | 29,152 | 4.7% | 17,875 | 9,139 | -1,748 | S100W0M5 |
| FY ending Mar 2025 | 727,491 | 21,697 | 3.0% | 12,460 | -23,331 | -61,482 | S100YF3Y |
| FY ending Mar 2026 | 794,306 | 55,304 | 7.0% | 34,692 | 68,392 | -27,550 | S100YF3Y |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥199M |
| Operating income per employee (consolidated) | ¥13.9M |
| Net income per employee (consolidated) | ¥8.7M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 3,667 | 3,767 | 3,824 | 3,888 | 3,991 |
| Average salary (parent company) | ¥8.6M | ¥8.8M | ¥8.9M | ¥9.3M | ¥9.4M |
| Average age (parent company) | 41.9 years | 41.6 years | 41.4 years | 41.5 years | 41.3 years |
| Average tenure (parent company) | 16.9 years | 17.1 years | 17.0 years | 16.9 years | 16.7 years |

Year over year: Employees (consolidated) +2.6% · Revenue (consolidated) +9.2%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Domestic engineering | 325,887 | 41.0% | 40,200 | 12.3% |
| Domestic construction | 273,431 | 34.4% | 16,813 | 6.1% |
| Overseas construction | 181,814 | 22.9% | -3,235 | -1.8% |
| Other | 13,173 | 1.7% | 1,523 | 11.6% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Domestic engineering | 41.0% | 68.7% | 27.6 | 12.3% |
| Domestic construction | 34.4% | 28.7% | -5.7 | 6.1% |
| Overseas construction | 22.9% | — | — | -1.8% |
| Other | 1.7% | 2.6% | 0.9 | 11.6% |

Loss-making segment (excluded from profit shares): Overseas construction -3,235 JPY mn

Segment → industry: Other → Real Estate Development & Leasing / Overseas construction → General Contractors / Domestic construction → General Contractors / Domestic engineering → General Contractors

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 68,392 | 8.6% | S100YF3Y |
| Capital expenditure | 95,942 | 12.1% | S100YF3Y |
| Free cash flow | -27,550 | -3.5% | 算出 |
| Investing cash flow | -66,313 | -8.3% | S100YF3Y |
| Financing cash flow | 9,594 | 1.2% | S100YF3Y |
| Dividends paid | 8,093 | 1.0% | S100YF3Y |
| Share buyback | 10,012 | 1.3% | S100YF3Y |
| Change in cash | 14,649 | 1.8% | S100YF3Y |
| Cash and equivalents | 71,435 | 9.0% | S100YF3Y |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 43,567 | 47,380 | 59,564 | 56,786 | 71,435 | S100TRIE, S100W0M5, S100YF3Y |
| Total assets | 467,364 | 508,179 | 566,028 | 660,127 | 790,413 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Net assets | 159,786 | 156,953 | 173,064 | 172,121 | 199,033 | S100TRIE, S100W0M5, S100YF3Y |
| Share capital | 30,449 | 30,449 | 30,449 | 30,449 | 30,449 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Property, plant and equipment | 87,507 | 91,763 | 96,278 | 137,311 | 215,476 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Intangible assets excluding goodwill | 3,761 | 3,660 | 2,498 | 2,089 | 1,929 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Goodwill | 2,319 | 2,373 | 1,320 | 652 | 558 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Investment securities | 21,056 | 22,459 | 24,852 | 22,475 | 28,517 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Current assets | 344,377 | 377,377 | 428,840 | 484,031 | 527,938 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Current liabilities | 247,764 | 303,943 | 321,004 | 378,846 | 419,651 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Short-term borrowings | 29,109 | 32,429 | 43,705 | 57,011 | 53,198 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Long-term borrowings | 23,447 | 21,265 | 25,611 | 58,503 | 82,005 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Bonds | 30,000 | 20,000 | 41,000 | 31,000 | 41,000 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Interest-bearing debt | 82,556 | 73,694 | 110,316 | 146,514 | 176,203 | 算出 |
| Total liabilities | 307,577 | 351,226 | 392,964 | 488,005 | 591,379 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Non-controlling interests | 186 | 107 | 55 | 60 | 768 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Equity attributable to owners of parent | 152,257 | 146,257 | 157,011 | 157,233 | 173,860 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Retained earnings | 103,984 | 97,931 | 108,948 | 111,155 | 137,744 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |
| Treasury stock | -564 | -511 | -773 | -2,759 | -12,720 | S100R58A, S100TRIE, S100W0M5, S100YF3Y |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 9% | S100YF3Y |
| Property, plant and equipment | 27% | S100YF3Y |
| Intangibles and goodwill | 0% | S100YF3Y |
| Investment securities | 4% | S100YF3Y |
| Other assets | 60% | S100YF3Y |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Interest-bearing debt | 22% | 算出 |
| Other liabilities | 53% | S100YF3Y |
| Equity | 25% | S100YF3Y |
| Other liabilities | 0% | S100YF3Y |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 467,364 | 508,179 | 566,028 | 660,127 | 790,413 |
| Equity | 159,786 | 156,953 | 173,064 | 172,121 | 199,033 |
| Interest-bearing debt | 82,556 | 73,694 | 110,316 | 146,514 | 176,203 |
| Cash | 43,567 | 47,380 | 59,564 | 56,786 | 71,435 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 27.1% | S100YF3Y |
| Fixed assets ÷ total assets | 27.3% | S100YF3Y |
| Goodwill ÷ parent equity | 0.3% | S100YF3Y |

Goodwill over 4 years: 2,319 → 558 JPY; total investing cash flow: -119,457 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.0% |
| Cash ÷ revenue | 9.0% |
| Net cash (cash − interest-bearing debt) | -¥104.8B |
| Net debt ÷ operating cash flow | 1.53× |
| Cash conversion (operating CF ÷ operating income) | 123.7% |
| Cash vs. profit gap | 33,700 JPY mn (of net income 97.1%) |
| Shareholder returns / net income | 52.2% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 23.3% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 12.1% |
| Investing CF relative to operating CF | 97.0% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 2.3% | 0.98× | 2.3% | 3.07× | 7.1% | S100R58A |
| 2023 | 0.1% | 1.03× | 0.1% | 3.27× | 0.5% | S100TRIE |
| 2024 | 2.9% | 1.15× | 3.3% | 3.54× | 11.8% | S100W0M5 |
| 2025 | 1.7% | 1.19× | 2.0% | 3.90× | 7.9% | S100YF3Y |
| 2026 | 4.4% | 1.10× | 4.8% | 4.38× | 21.0% | S100YF3Y |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社(信託口) | Major shareholder | 14.4% | 2026-03-31 |
| 株式会社日本カストディ銀行(信託口) | Major shareholder | 5.8% | 2026-03-31 |
| ステート ストリート バンク アンド トラスト カンパニー 505223（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 3.3% | 2026-03-31 |
| ステート ストリート バンク アンド トラスト カンパニー 505001（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.7% | 2026-03-31 |
| 明治安田生命保険相互会社 | Major shareholder | 2.2% | 2026-03-31 |
| 株式会社みずほ銀行 | Major shareholder | 2.1% | 2026-03-31 |
| ステート ストリート バンク アンド トラスト カンパニー 505103（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.9% | 2026-03-31 |
| 損害保険ジャパン株式会社 | Major shareholder | 1.6% | 2026-03-31 |
| 五洋建設取引先持株会 | Major shareholder | 1.5% | 2026-03-31 |
| ジェーピー モルガン チェース バンク 385781（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.5% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥794.3B, up +9.2% from ¥727.5B.
- Profit grew much faster: operating income went from ¥21.7B to ¥55.3B (+154.9%), and net income from ¥12.5B to ¥34.7B (+178.4%).
- Operating cash flow swung from -¥23.3B to a positive ¥68.4B, but heavy spending on new vessels kept free cash flow negative at -¥27.6B.

### Drivers

- In domestic civil engineering, large port projects moved ahead on schedule and design changes improved project margins
- Domestic building work also earned more as large projects progressed and margins improved
- Overseas losses shrank a lot from last year, when two big civil projects booked losses, but a repriced building job and extra losses at an equipment subsidiary kept the unit in the red

### Risks

- Higher material and labor costs would push up construction costs and squeeze margins
- Overseas projects are exposed to sudden changes in local laws and rules, and to conflict
- More work in progress means more money tied up before clients pay, and the company itself flags rising interest costs on that funding

Cited: Annual Securities Report, 76th term (Apr 2025 – Mar 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report, 76th term (Apr 2025 – Mar 2026) (事業等のリスク); Annual Securities Report, 76th term (Apr 2025 – Mar 2026) (経営方針、経営環境及び対処すべき課題等)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第76期(2025/04/01－2026/03/31) | S100YF3Y | 2026-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YF3Y,, |
| 有価証券報告書－第75期(2024/04/01－2025/03/31) | S100W0M5 | 2025-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W0M5,, |
| 有価証券報告書－第74期(2023/04/01－2024/03/31) | S100TRIE | 2024-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TRIE,, |
| 有価証券報告書－第73期(2022/04/01－2023/03/31) | S100R58A | 2023-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R58A,, |
| 訂正有価証券報告書－第72期(令和3年4月1日－令和4年3月31日) | S100OPN0 | 2022-07-13 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OPN0,, |
| 有価証券報告書－第71期(令和2年4月1日－令和3年3月31日) | S100LOJE | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LOJE,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).