CANDEAL Co., Ltd.
1446・Standard Market・Construction
Business
Candeal Inc. is a pure holding company operating under the vision of "Candeal for every building," providing construction services specialized in repair, renovation, maintenance, and management of buildings rather than new construction. The group comprises four consolidated subsidiaries: Barn Repair Co., Ltd., Candeal Tect Co., Ltd., Candeal Design Co., Ltd., and Candeal Partners Co., Ltd. Services are organized into four categories: repair services (partial repair of interior and exterior building materials), construction services for residential environments (regular inspections, maintenance, call centers, etc.), construction services for commercial environments (interior construction work, furniture assembly, hoisting, etc. for commercial facilities), and sales of construction materials. The company's main customers are construction-related businesses such as house builders, general contractors, and developers, and it provides uniform-quality services through a nationwide service network of 49 locations (as of September 30, 2025). Starting from the founding of its repair service business in 1995, the company built its current group structure through M&A and organizational restructuring, listing on the TSE Mothers market in 2018 and being reassigned to the TSE First Section in 2019.
Business Model
A service provision model in which the company receives orders from house builders, general contractors, developers and others, dispatching directly employed technicians and partner company staff to job sites. Repair services operate on an accumulation basis of per-project unit price multiplied by number of jobs executed, while housing-related construction services are centered on recurring revenue based on contracts such as periodic inspections and maintenance. Technician utilization is continuously managed via a system to maximize productivity. The structure aims to improve profitability through the dual approach of continuously raising order unit prices and managing costs.
Company Strengths
The company has built a service network across 49 locations nationwide (as of September 30, 2025), ensuring uniform quality nationwide through its proprietary technical education and training programs (manuals, e-learning, and training curricula). Its ability to respond to simultaneous nationwide construction projects (recall responses, multi-store simultaneous construction, etc.) serves as a differentiating factor from competitors.
The building services for residential environments adopt an accumulation-type, continuity-based model based on contracts for regular inspections, maintenance, call centers, and the like. In FY2025, sales of this service reached a record high of ¥4,148 million (106.5% year-on-year), functioning as a stable revenue base. The company also benefits from policy tailwinds from the Basic Plan for Housing Life (approved by the Cabinet in 2021).
Amid rising prices and labor costs, the company has continued to raise order unit prices. In FY2025, despite a decrease in the number of repair orders for detached houses due to a decline in new housing starts, sales revenue was maintained at 103.0% year-on-year owing to the rise in unit prices. Operating profit increased to ¥421 million, up 117.1% year-on-year.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥11,220 million in FY2021 to ¥13,861 million in FY2025, and the first half of FY2026 (ending September 2026) also renewed its record first-half high at ¥7,717 million (up 7.2% year on year). Operating profit peaked at ¥452 million in FY2023 before falling to ¥359 million in FY2024, but has shown a clear recovery trend since, reaching ¥421 million in FY2025 and ¥439 million in the first half of FY2026. Higher order unit prices and growth in gross profit (up 8.8% in the first half) drove the profit improvement. As for external factors, inbound demand and redevelopment demand are providing tailwinds for the commercial environment business, while the decline in housing starts (87.1% of the same period of the previous year) is a headwind for the repair service business. The first-half progress rate against the full-year forecast (operating profit of ¥480 million) stands at a high 91.7%, but since the full-year forecast has been left unchanged, it appears to factor in increased costs in the second half.
Growth Strategy
Simultaneously advancing five priority initiatives: raising selling prices, expanding construction capacity, improving productivity, forming alliances, and human capital management
Continuing to raise order unit prices against a backdrop of rising prices and labor costs. In the H1 of FY2026 (ending March 2026), detached house repair work achieved revenue growth through higher unit prices even as the number of orders declined, confirming the effectiveness of this measure.
Amid intensifying competition for talent, the company is securing labor capacity through enhanced recruitment activities and expansion of its partner company network. SG&A expenses increased in H1 due to growth investments such as human capital investment, but this was absorbed by growth in gross profit.
The number of periodic inspections increased (108.2% year-on-year), and checks progressed favorably, steadily expanding the accumulation-type, recurring revenue base. An increase in periodic maintenance work also contributed, with overall residential-environment construction services reaching 107.0% year-on-year.
Actively acquiring interior construction projects for stores, commercial facilities, hotels, and offices. Backed by strong inbound demand and urban redevelopment demand, commercial-environment construction services recorded the highest growth rate among the four segments, at 110.8% year-on-year.
Promoting optimization of technician utilization through system-based management. In multi-family housing repair work, although total man-days decreased, revenue growth was achieved through productivity improvements, confirming the effectiveness of this measure in some areas.
Last updated: July 17, 2026