GreenEnergy & Company Inc.

Business Details

The business is structured around two axes: flow business (solar power generation facilities and grid-connected storage battery station operations, net-zero-energy house operations) and stock business (O&M operations and power generation operations). Customers include individual investors, corporate power users, and general consumers, and the company provides an integrated service covering everything from land acquisition to design, construction, charging, operation, and maintenance. The Group operates as a single segment in the renewable energy business, and in FY2026 (ending April 2026) achieved substantial growth in both revenue and profit, with net sales of ¥18,358 million (up 58.0% year on year) and operating profit of ¥1,192 million (up 119.3% year on year).

Recent Overview

FY2026 (ending April 2026) achieved substantial growth, with net sales up 58% and operating profit up 119%

For the full year of FY2026 (ending April 2026), net sales reached a record ¥18,358 million (up 58.0% year on year) and operating profit reached a record ¥1,192 million (up 119.3% year on year), marking new record highs. This was driven by the full-scale rollout of grid-connected storage battery station development and the company's response to robust decarbonization demand. Operating cash flow also turned positive, improving to ¥1,319 million from -¥961 million in the prior period. Four companies, including Ietochi Fudousan Co., Ltd. and Sunglow Co., Ltd., were newly added to the scope of consolidation. A three-for-one stock split was implemented effective May 1, 2026. For FY2027 (ending April 2027), the company forecasts net sales of ¥21,500 million (up 17.1% year on year) and operating profit of ¥1,450 million (up 21.7% year on year).

Key Products

Growth Drivers

• Policy tailwind toward establishing renewable energy as a mainstay power source, driven by the 6th Strategic Energy Plan and the 'Basic Policy for the Realization of GX'
• Surging demand for grid-connected storage battery stations: development of large-scale projects is accelerating against a backdrop of rapidly increasing AI data centers and the need to curb solar power output curtailment
• Strengthening of national financial support and institutional development through the revised 'Storage Battery and Power Source Industry Strategy' (targeting a threefold increase in sales related to Japanese companies by 2035)
• Continued expansion of demand from corporations and individuals for self-consumption solar power and corporate PPA adoption amid a weak yen and rising energy costs
• Promotion of a strategy to maximize green energy facility development based on the mid-term management plan 'Green300' (targeting net sales of ¥30,000 million in FY2029 (ending April 2029))
• Group synergies and expanded business foundation through M&A and consolidation of companies such as Ietochi Fudousan Co., Ltd. and Sunglow Co., Ltd.
• Strengthening of the stock-type revenue model through the accumulation of O&M management contracts and expansion of proprietary power generation assets

Risks

• Risk of expanding financial leverage and rising interest rate exposure due to a decline in the equity ratio (from 39.0% to 34.3%) and an increase in interest-bearing debt (total current liabilities of ¥6,916 million, total non-current liabilities of ¥3,931 million)
• Risk of inventory valuation losses and capital recovery risk associated with a substantial increase in advance payments (from ¥314 million to ¥2,920 million) and a buildup of work in process (from ¥1,534 million to ¥2,913 million)
• Risk of construction and development delays for grid-connected storage battery stations and solar power generation facilities (timing shifts in revenue recognition due to construction delays, with advances received accumulating to ¥2,991 million)
• Risk of prolonged development procedures due to stricter local understanding and environmental consideration requirements for large-scale solar power plants and grid-connected storage battery stations
• Risk of regulatory and policy changes related to renewable energy (changes to the FIT/FIP system, rule changes concerning grid-connected storage battery stations, etc.)
• Risk of extraordinary losses, such as the ¥292 million loss on sale of investment securities recorded, and risk of net profit pressure from increased corporate tax burden (from ¥22 million in the prior period to ¥327 million in the current period)
• Lack of business risk diversification due to concentration in a single segment (a structure directly exposed to fluctuations in renewable energy market supply and demand and intensifying price competition)