BESTERRA CO.,LTD

Vestella Corporation is an engineering company specializing exclusively in industrial plant demolition, founded in 1974. It provides comprehensive engineering services for demolition work across a wide range of industrial plants—including steelmaking, electric power, gas, and petroleum facilities—covering construction method proposals, design, construction planning, safety management, and regulatory compliance. The company outsources actual construction work to specialized subcontractors while focusing its own operations on management and supervision, adopting a fabless-type business model. It holds proprietary patented construction methods such as the "Apple Peeling Method" (ringo kawamuki koho) and the "Wind Turbine Toppling Method" (fusha no tento koho), and also handles hazardous material processing—including asbestos, PCBs, and dioxins—as well as 3D measurement and DX solutions. Its main customers are major companies in the steelmaking, electric power, and petrochemical industries, with business primarily consisting of first- and second-tier subcontracting work obtained through affiliated equipment construction companies such as JFE Plant Engineering and major general contractors. Listed on the Prime Market of the Tokyo Stock Exchange.

The company receives orders for plant demolition work as either a prime contractor or subcontractor, outsourcing actual construction to specialized subcontractors while specializing in-house in construction method proposals, construction management, safety management, and cost management to create high value-added services. It has a unique revenue structure in which valuable materials generated by demolition work (iron, stainless steel, copper, etc.) are collected and sold to scrap dealers, with the sales proceeds recorded as net sales of completed construction. To address the funding gap between the approximately 35-day payment cycle to partner companies and the approximately 200-day collection cycle from clients, the company utilizes the monetization of electronic receivables and borrowings from financial institutions.

Revenue bottomed out at ¥5,459 million in FY2023 and expanded rapidly, recovering to ¥11,140 million in FY2026. Operating profit also continued to improve, moving from a loss (-¥216 million) in FY2023 to ¥741 million in FY2026. In Q1 of FY2027 (ending January 2027), revenue reached ¥3,273 million (up 29.3% year on year) and operating profit reached ¥353 million (up 164.1% year on year), achieving accelerating profit growth. Improvement in the gross profit margin on completed construction contracts (through enhanced estimation accuracy and thorough cost control) and containment of SG&A expenses drove the profit expansion. As an external factor, expanding demand for energy facility renewal under the GX2040 Vision and continued demand for dismantling surplus facilities amid structural reviews across various industries have underpinned performance. On the other hand, external cost pressures such as rising labor costs and surging fuel and materials prices persist, and the structure in which cost management skill determines profitability remains unchanged.