Obayashi Corporation: history, ownership, mission, how it works & makes money

A Brief History of Obayashi Corporation

Obayashi Corporation was founded in 1892 by Sukejiro Obayashi in Osaka, Japan. Initially focused on construction, the company quickly expanded its operations to include a variety of engineering projects.

In 1947, the company incorporated as a major player in the rebuilding of Japan's infrastructure following World War II. By 1980, Obayashi had shifted its focus towards international projects, establishing a significant presence in Asia and the Americas.

As of 2023, the company reported revenues of approximately ¥1.3 trillion (about $12 billion USD), with a net income of ¥45 billion (approximately $430 million USD). This demonstrates a steady growth trajectory since its founding.

In 2021, Obayashi Corporation announced a significant milestone by completing the Tokyo Bay Aqua-Line, a major expressway project connecting Kawasaki and Kisarazu, which involved infrastructure development costing around ¥600 billion (about $5.6 billion USD).

Obayashi Corporation has also invested heavily in technology, contributing to developments in earthquake-resistant construction techniques, which are crucial for the seismic activity prevalent in Japan. In 2022, the company allocated approximately ¥10 billion (around $90 million USD) towards research and development in this area.

In terms of global presence, Obayashi Corporation has expanded its operations to over 20 countries, with significant projects across Asia, the Middle East, and North America. The company aims to increase its international revenue share to 30% by 2025.

Obayashi's commitment to sustainability has been reflected in its recent projects, which have included eco-friendly building designs and green construction practices. In 2022, it reported that around 15% of its projects were categorized as sustainable.

Looking at the company’s stock performance, the shares of Obayashi Corporation are listed on the Tokyo Stock Exchange under the ticker symbol 1802. As of October 2023, the stock traded at approximately ¥1,300 per share, reflecting a year-to-date increase of 8%.

With a rich history spanning over a century, Obayashi Corporation continues to adapt to the evolving construction landscape, focusing on technological advancements and sustainable practices while maintaining a strong financial position in the global market.

A Who Owns Obayashi Corporation

Obayashi Corporation, a leading construction and civil engineering firm based in Japan, is publicly traded on the Tokyo Stock Exchange under the ticker symbol 1861. As of the latest data, the company has a market capitalization of approximately ¥253 billion (as of October 2023).

The ownership structure of Obayashi Corporation is characterized by a mix of institutional and individual shareholders. The major shareholders include domestic and foreign institutional investors. According to the most recent shareholder report:

Among the prominent institutional shareholders, the following entities hold significant stakes:

The share ownership highlights a strong presence of Japanese financial institutions, indicating a trust in Obayashi's stability and growth potential within the construction sector. Additionally, foreign ownership showcases the international interest in the company's projects and performance.

Obayashi's performance has been influenced by its ownership structure, with institutional investors typically providing guidance and strategic direction. The consistent investments from reputable financial institutions reflect confidence in the company's long-term growth trajectory.

In terms of recent financial performance, Obayashi Corporation reported a revenue of ¥1.2 trillion for the fiscal year ending March 2023. This showed an increase of 6.3% compared to the previous year. The company's net income reached ¥43 billion, translating to a net profit margin of approximately 3.6%.

In conclusion, Obayashi Corporation's ownership composition consists primarily of Japanese financial institutions and other corporate stakeholders, with a notable percentage held by foreign investors. These dynamics play a crucial role in shaping the company's strategic decisions and operational directions.

Obayashi Corporation Mission Statement

Obayashi Corporation, one of Japan's leading construction firms, emphasizes its commitment to society, the environment, and technology in its mission statement. They aim to contribute to the development of society through the provision of high-quality construction services that ensure sustainability. Their core values revolve around innovation, safety, and customer satisfaction.

The mission statement encapsulates several key objectives:

• To enhance urban development while respecting the environment.
• To advance technologies that improve construction efficiency.
• To strengthen partnerships and relationships with stakeholders.
• To ensure the well-being of employees and communities.

In the fiscal year ending March 31, 2023, Obayashi Corporation reported a significant financial performance, characterized by the following key metrics:

Obayashi's commitment to sustainability is evident in its operations. The company aims to reduce its carbon footprint by implementing innovative technologies and practices. In 2022, they achieved a 20% reduction in CO2 emissions per unit of construction compared to their 2015 baseline.

The company also invests heavily in research and development, allocating approximately ¥18 billion in R&D initiatives in 2022, focusing on construction technologies, disaster prevention measures, and environmental sustainability.

Furthermore, Obayashi Corporation holds a strong position in the global construction market. According to the Engineering News-Record (ENR) 2023 rankings, Obayashi ranked 14th among the world's largest construction companies based on revenue.

In summary, Obayashi Corporation's mission statement reflects its strategic focus on enhancing quality construction services while maintaining responsible stewardship of the environment and society. This approach is not only beneficial for their business but also contributes positively to global sustainability goals.

How Obayashi Corporation Works

Obayashi Corporation, established in 1892, is one of Japan's leading construction companies, specializing in civil engineering and building construction. The company operates through various segments including construction, real estate, and engineering.

The construction division contributes the most significant portion of revenue, engaging in projects for public infrastructure such as roads, bridges, and tunnels, as well as commercial and residential building projects. As of the fiscal year ending March 2023, Obayashi Corporation reported total consolidated revenues of approximately ¥1.51 trillion (about $11.45 billion), with a net profit of around ¥47.2 billion (approximately $353 million).

Obayashi Corporation is listed on the Tokyo Stock Exchange under the ticker symbol 1861. The company has shown resilience in the construction sector, with a backlog of orders that as of September 2023 stood at ¥2.97 trillion, indicating future revenue potential.

In terms of geographical reach, Obayashi has expanded its operations beyond Japan, engaging in projects in Asia, North America, and Europe. Key international projects include the construction of the Shenzhen Bay Bridge in China and various skyscrapers across major cities globally.

The company's commitment to sustainability is noteworthy. Obayashi has set ambitious goals to reduce carbon emissions by 50% by 2030. The initiative includes investments in technology and sustainable construction practices, which align with global trends toward environmental conservation.

Obayashi is also known for its innovations in construction technology, including advancements in prefabrication and the application of AI and robotics to enhance efficiency and safety on job sites.

In terms of workforce, the company employed approximately 16,000 employees as of 2023, emphasizing a strong investment in training and development to enhance skills in a rapidly evolving construction landscape.

Overall, Obayashi Corporation operates with a robust business model that integrates traditional construction practices with modern technologies, positioning itself to capitalize on opportunities in both domestic and international markets.

How Obayashi Corporation Makes Money

Obayashi Corporation, founded in 1892, is one of Japan's largest construction companies, specializing in various sectors including infrastructure, environmental services, and building construction. As of FY2022, the company reported revenues of approximately ¥1.3 trillion (around $11.9 billion), with a net income of ¥46 billion (approximately $420 million).

The company generates revenue through several key segments:

• Construction: The primary source of revenue, accounting for about 85% of total income, pertains to civil engineering and building projects.
• Real Estate: The segment contributes around 10% to the total revenue, primarily through property development and sales.
• Other Businesses: This includes environmental services and facilities management, yielding roughly 5% of revenue.

Obayashi's construction projects range from bridges and tunnels to commercial buildings and major urban infrastructure. In 2022, their most significant projects included:

The company’s profitability is supported by a strong backlog of projects, which as of the end of FY2022 stood at approximately ¥3 trillion (around $27.3 billion). This extensive pipeline indicates steady revenue flow over the upcoming years.

Additionally, Obayashi's commitment to sustainability and innovation helps to diversify its revenue streams. The corporation's environmental services segment focuses on waste management and infrastructure development, which is increasingly important in a resource-constrained world. As of FY2022, revenue from environmental services contributed approximately ¥40 billion (about $360 million).

Obayashi integrates advanced construction techniques and technologies, such as Building Information Modeling (BIM) and automated construction processes. By investing in R&D, the company aims to improve efficiency and reduce costs, leading to greater profitability.

Overall, Obayashi Corporation’s business model is heavily reliant on large-scale construction projects, a growing real estate portfolio, and innovative environmental solutions. These factors collectively enable the company to maintain a robust financial standing and drive future growth opportunities.