Obayashi Corporation

Obayashi's full-year results for the fiscal year ending March 2026 showed revenue of 2.5862 trillion yen, down 0.2% year on year, operating profit of 194.6 billion yen, up 36.6%, ordinary profit of 204.1 billion yen, up 34.1%, and net profit attributable to owners of the parent of 173.7 billion yen, up 19.5%, marking a record high for net profit. While revenue was roughly flat, operating profit rose 52.2 billion yen from the previous year, which the company attributed to additional and change-order work secured in its domestic building business, contributions from highly profitable projects, an increase in and smooth progress of backlogged work in its overseas civil engineering business, and property sales in its real estate business. Its operating profit margin was 7.5%, slightly above the construction industry median of 7.2%, while ROE came in at 14.4%, clearly exceeding the median of 10.8%. Meanwhile, the company's full-year forecast for the fiscal year ending March 2027 projects revenue of 2.945 trillion yen, up 13.9%, but operating profit of 180 billion yen, down 7.5%, ordinary profit of 183 billion yen, down 10.4%, and net profit of 157 billion yen, down 9.6%, amounting to higher revenue but lower profit. Operating cash flow for the fiscal year ending March 2026 swelled to 252.9 billion yen, three times the previous year's 84.1 billion yen and far exceeding net profit, while investing cash flow was an outflow of 84.3 billion yen and financing cash flow an outflow of 141.4 billion yen, leaving free cash flow at 168.5 billion yen and cash at period end building up to 416 billion yen.

Brookfield Business has agreed to sell its global construction unit, Multiplex, to Japanese construction group Obayashi for $650 million. The deal includes roughly $530 million in cash at closing and an earn-out tied to Multiplex's future performance, with completion expected in the fourth quarter of 2026. Multiplex, headquartered in London and operating across Australia and Canada, employs around 2,500 people and recorded approximately $3.80 billion in net sales for the 2025 financial year. Brookfield Business Corporation CEO Anuj Ranjan said the transaction brings total proceeds from asset sales and distributions to nearly $1 billion since the start of the year, amounting to over $4 per share in cash. Obayashi plans to use the acquisition to strengthen its position in Australia, the UK, and Canada.

Obayashi Corp. has agreed to acquire BCI UK Holdings Limited, the holding company that owns construction business operator Multiplex Global Ltd. The Japanese construction firm previously collaborated with Multiplex on the main stadium for the Sydney Olympic Games. Following the acquisition, Multiplex, BCI and select units will become Obayashi's specified subsidiaries. UK-based Multiplex employs around 2,500 people and operates building construction businesses in Australia, the United Kingdom and Canada, recording net sales of around $3.80 billion and EBITDA of around $62 million in fiscal 2025. Obayashi said the deal supports its plan to expand its overseas construction business, particularly in North America and Southeast Asia.