Operating Margin Ranking of 23 Major General Contractors｜2021 edition
In this issue of the “State of General Contractors” series, which provides an overview of the status of Japan’s major general contractors based on their business performance, etc., we will introduce the operating margin rankings of the 23 major general contractors based on the operating profit of each company in the fiscal year ending on March 31, 2021.
Considering the fact that general contractors are generally classified according to their company size, we will introduce the following in detail.
- Operating margin ranking of the 23 major general contractors
- Operating margin ranking of super general contractors
- Operating margin ranking of semi-major general contractors
- Operating margin ranking of mid-sized general contractors
- Operating margin comparison by general contractor size
1. Operating margin ranking of the 23 major general contractors
First, among the 23 major general contractors, Haseko Corporation was the general contractor with the largest operating margin at 9.7%. Taisei Corporation, Kajima Corporation, and Toyo Construction Co., Ltd. followed Haseko Corporation with operating margins of 9.6%, 8.8%, and 8.4%, respectively. (See figure below)
On the other hand, the general contractor with the lowest operating margin was Tokyu Construction Co., Ltd. at 1.1%, followed by Sumitomo Mitsui Construction Co., Ltd, Fujita Corporation, and Tekken Corporation, which had operating margins of 3.2% each. This suggests that the operating margins of these companies are generally below the levels of the top general contractors. The average for the 23 companies was 6.7%
2. Operating margin ranking of super general contractors
Next, when looking at the five super general contractors, Taisei Corporation was the super general contractor with the highest operating margin at 9.6%. This was followed by Kajima Corporation, Obayashi Corporation, Shimizu Corporation, and Takenaka Corporation, which had operating margins of 8.8%, 7.6%, 7.2%, and 3.6%, respectively. (See figure below)
The difference in the operating margin between Taisei Corporation and Takenaka Corporation is approximately 6.0%. The average of the five super general contractors is 7.5%, which is an amount that is between the operating margins recorded by Obayashi Corporation and Shimizu Corporation.
3. Operating margin ranking of semi-major general contractors
Next, a look at the operating margins of the 10 semi-major general contractors shows that Haseko Corporation is the semi-major general contractor with the largest operating margin at 9.7%. Maeda Corporation, Hazama Ando Corporation, Kumagai Gumi, and Nishimatsu Construction Co., Ltd. followed with operating margins of 8.1%, 7.7%, 6.2%, and 6.2%, respectively. (See figure below)
On the other hand, Tokyu Construction Co., Ltd. was the mid-sized general contractor with lowest operating margin at 1.1%. Sumitomo Mitsui Construction Co., Ltd., Fujita Corporation, Toda Construction, and Penta-Ocean Construction Co., Ltd. followed with 3.2%, 3.2%, 5.5%, and 6.1%, respectively. The average for the semi-major general contractors was about 6.1%, which is roughly equivalent to the operating margins recorded by Kumagai Gumi, Nishimatsu Construction Co., Ltd., and Penta-Ocean Construction Co., Ltd.
4. Operating margin ranking of mid-sized general contractors
Furthermore, looking at the eight mid-sized general contractors, the general contractor with the largest operating margin was Toyo Construction Co., Ltd. at 8.4%. This was followed by Okumura Corporation, Daiho Corporation, and the Zenitaka Corporation, with operating margins of 6.1%, 5.2%, and 4.4%, respectively. (See figure below)
On the other hand, Tekken Corporation was the mid-sized general contractor with lowest operating margin at 3.2%. Tobishima Corporation, Asanuma Corporation, and Toa Corporation followed with 3.4%, 3.8%, and 4.0%, respectively. The average for the mid-sized general contractors was about 4.9%, which is an amount between the operating margins of Daiho Corporation and the Zenitaka Corporation.
5. Operating margin comparison by general contractor size
The average operating margin recorded by the five super general contractors is 7.5%. The average operating margin recorded by the 10 semi-major general contractors is 6.1%. The average operating margin recorded by the eight mid-sized general contractors is 4.9%. (See figure below)
This shows that the five super general contractors have the highest operating profit margins, followed by the 10 semi-major general contractors. The eight mid-sized general contractors have the lowest operating profit margins. The average operating profit margins of 18 semi-major and medium-sized general contractors and 23 major general contractors were 5.8% and 6.7%, respectively.
Reference | Data List
Lastly, the following is a list of the 23 major general contractors and the data used for reference.
list of the 23 major general contractors
Data of Operating Margin Ranking for 23 Major General Contractors
| Company | Operating Margin | General contractor size |
|---|---|---|
| Haseko | 9.7% | semi-major general contractors |
| Taisei | 9.6% | super general contractors |
| Kajima | 8.8% | super general contractors |
| Toyo Construction | 8.4% | mid-sized general contractors |
| Maeda | 8.1% | semi-major general contractors |
| Hazama Ando | 7.7% | semi-major general contractors |
| Obayashi | 7.6% | super general contractors |
| Shimizu | 7.2% | super general contractors |
| Kumagai Gumi | 6.2% | semi-major general contractors |
| Nishimatsu Construction | 6.2% | semi-major general contractors |
| Penta-Ocean Construction | 6.1% | semi-major general contractors |
| Okumura | 6.1% | mid-sized general contractors |
| Toda | 5.5% | semi-major general contractors |
| Daiho | 5.2% | mid-sized general contractors |
| Zenitaka | 4.4% | mid-sized general contractors |
| Toa | 4.0% | mid-sized general contractors |
| Asanuma | 3.8% | mid-sized general contractors |
| Takenaka | 3.6% | super general contractors |
| Tobishima | 3.4% | mid-sized general contractors |
| Tekken | 3.2% | mid-sized general contractors |
| Fujita | 3.2% | semi-major general contractors |
| Sumitomo Mitsui Construction | 3.2% | semi-major general contractors |
| Tokyu Construction | 1.1% | semi-major general contractors |
| Average of 5 super GCs | 7.5% | 5 super GCs |
| Average of 10 semi-major GCs | 6.1% | 10 semi-major GCs |
| Average of 8 mid-sized GCs | 4.9% | 8 mid-sized GCs |
| Average of 18 semi-major and mid-sized GCs | 5.8% | 18 semi-major and mid-sized GCs |
| Average of 23 major GCs | 6.7% | 23 major GCs |
Source: Compiled based on each company’s annual securities report and financial statements (as of March 31, 2021) Values are based on each company’s “non-consolidated” figures.
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