GreenEnergy & Company Inc.

Total order backlog for the fiscal period ending April 2025 was ¥2,989,780 thousand (up 251.2% year on year). Within this, order backlog for the solar power generation equipment and grid-scale storage business surged 355.2% year on year, driven by a sharp rise in demand for grid-scale storage facilities. Visibility into revenue recognition for subsequent periods is high.

The O&M business and power generation business (¥1,271 million) account for approximately 11% of net sales, with recurring revenue steadily accumulating from 1,893 management contracts. This structure, in which recurring revenue supports the volatility risk of the flow-based business, is expected to see the number of managed properties continue to increase as the business expands.

Domestic and international policy and agreements—including the 6th Strategic Energy Plan (targeting a 36-38% renewable energy ratio by FY2030), the Basic Policy for the Realization of GX (approved by the Cabinet in February 2023), and the COP28 agreement to triple renewable energy capacity—are providing strong tailwinds for the business environment. As a first mover, having been founded in 2009 and entered the renewable energy business in 2012, the company has accumulated a franchise network, O&M framework, and development expertise.

The company addresses robust decarbonization demand with green energy facility development—centered on non-FIT solar power plants and ZEH (Net Zero Energy House)—as its core business. Having achieved net sales of ¥18,358 million in FY2026 (ending April 2026), progress toward the medium-term plan target of ¥30,000 million (FY2029, ending April 2029) is on track. The forecast of ¥21,500 million (up 17.1% year on year) for FY2027 (ending April 2027) serves as the next checkpoint.

In the grid-scale battery storage market, where demand is rapidly expanding on the back of the surge in AI data centers and the need to curb solar output curtailment, the company plans to substantially raise its pace of development and deployment. As entry barriers rise following the government's land-securing requirement introduced in January 2026, the company aims to accelerate market share capture by leveraging its first-mover advantage. The net book value of machinery, equipment, and vehicles surged from ¥260 million in the previous fiscal year to ¥1,345 million, indicating that capital investment is now in full swing.

The company is expanding operation and maintenance (O&M) services for completed power generation assets, driving a shift from flow-based revenue dependence to a recurring, stock-type revenue base. By expanding its own power generation asset holdings and accumulating the number of managed facilities, it aims to build a stable revenue source less susceptible to economic fluctuations. The consolidation of Green Energy Asset LLC has also strengthened asset management functions.

In FY2026 (ending April 2026), the company consolidated Ietochi Fudosan Co., Ltd., Sunglow Corporation, Fanta Investment Advisors Co., Ltd., and Green Energy Asset LLC. By internalizing land procurement, battery storage, and asset management functions, it aims to maximize profitability across the entire value chain. Equity in earnings of affiliates of ¥50 million has begun to be recorded, indicating that the financial effects of group synergies are starting to materialize.

The company is promoting operational efficiency and optimization of sales processes through the use of AI technology, aiming to improve the SG&A expense ratio and operating margin. The operating margin improved to 6.5% in FY2026 (ending April 2026) (from 4.7% in the previous fiscal year), indicating that the effects of efficiency measures are partially materializing. For FY2027 (ending April 2027), the company forecasts a further improvement in operating margin to 6.7% (¥1,450 million ÷ ¥21,500 million).