West Holdings Corporation
1407・Standard Market・Construction
Renewable Energy Business
Core segment built on two pillars: self-consumption EPC and non-FIT power plant development
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (cumulative Q3, FY2026 ending August 2026) | ¥13,975 million | ¥16,198 million (same period prior year, including inter-segment) | ↓ |
| Operating profit (cumulative Q3, FY2026 ending August 2026) | ¥458 million | ¥573 million (same period prior year) | ↓ |
| Sales YoY change | -13.7% | – | ↓ |
| Operating profit YoY change | -19.9% | – | ↓ |
| Sales (full year, FY2025 ending August 2025) | ¥32,876 million | – | — |
| Operating profit (full year, FY2025 ending August 2025) | ¥4,546 million | – | — |
Business Details
The segment centers on EPC contracting for self-consumption industrial solar power plants and the development and sale of non-FIT solar power plants. West Energy Solution Co., Ltd. and other group companies serve as the operating entities. Against a backdrop of decarbonization needs, the segment provides distributed power generation solutions to corporations and municipalities. It deploys a self-consumption model that does not rely on the FIT system or subsidies, and the customer base is expanding to supplier companies, starting from the carbon-neutrality needs of TSE Prime-listed companies.
Recent Overview
Delivery delays for non-FIT power plants continue; plan calls for catch-up in Q4
Cumulative sales for the first three quarters of FY2026 (ending August 2026) were ¥13,975 million (down 13.7% year on year), and operating profit was ¥458 million (down 19.9% year on year). While the industrial solar power plant EPC business progressed favorably in both orders and completions, the non-FIT solar power plant development business saw many projects with power supply commencing from April 2026, and the number of deliveries through the second quarter fell short of plan. Efforts were made in the third quarter to recover the delay, but full recovery was not achieved; the plan is to accumulate deliveries of completed projects toward the fourth quarter.
Key Products
Growth Drivers
- Structural expansion of domestic demand driven by the 7th Strategic Energy Plan (target of 40-50% renewable energy ratio by FY2040)
- Robust demand for self-consumption solar power generation amid rising decarbonization needs among corporations and municipalities
- Expansion of the customer base to supplier companies, starting from the carbon-neutrality needs of TSE Prime-listed companies
- Increased demand for green power procurement due to mandatory sustainability disclosure for large enterprises starting FY2027 (ending March 2027)
- Development of region-focused sales activities based on information provided by partner regional financial institutions nationwide
Risks
- Risk of quarter-to-quarter sales volatility due to timing shifts in non-FIT solar power plant deliveries (shortfall versus plan continuing as of cumulative Q3)
- Risk of reduced non-FIT power plant development capacity and shortfall in delivery volume due to shift of management resources toward the battery storage business
- Risk of shrinking sales in the ground-mounted mega solar sub-segment due to halted new development
- Risk of short-term demand drop-off triggered by global energy price fluctuations (industrial EPC)
- Risk of sales concentration with major customers
Last updated: November 25, 2025