CANDEAL Co., Ltd.
1446・Standard Market・Construction
Construction Services-Related Business
A single-segment business specializing in building repair, maintenance, and management
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (1H cumulative) | ¥7,717 million | ¥7,198 million | ↑ |
| Operating profit (1H cumulative) | ¥440 million | ¥354 million | ↑ |
| Ordinary profit (1H cumulative) | ¥443 million | ¥351 million | ↑ |
| Net income attributable to owners of parent (1H cumulative) | ¥235 million | ¥174 million | ↑ |
| Operating margin (1H cumulative) | 5.7% | 4.9% | ↑ |
| Equity ratio | 47.2% | 47.1% | — |
| Goodwill amortization (1H cumulative) | ¥96 million | ¥96 million | — |
| Goodwill balance | ¥1,634 million | ¥1,730 million | ↓ |
| Ordinary profit before goodwill amortization (1H cumulative) | ¥539 million | ¥447 million | ↑ |
| Full-year revenue forecast | ¥15,000 million | ¥13,863 million | ↑ |
| Full-year operating profit forecast | ¥480 million | ¥421 million | ↑ |
Business Details
A specialized construction services group that receives orders from house builders, general contractors, developers and others, dispatching technicians to provide services at residences, commercial facilities, offices and other sites. The business is organized into four segments: repair services, residential-oriented construction services, commercial-oriented construction services, and materials sales. The company operates as a pure holding company together with four consolidated subsidiaries (Burn Repair, Candil Tect, Candil Design, and Candil Partners), forming a five-company group with nationwide operations.
Recent Overview
1H cumulative revenue reached a record high, with revenue growth across all segments and substantial increases in profit at every level
Revenue for the cumulative second quarter of the fiscal year ending September 2026 (October 2025 to March 2026) reached ¥7,717 million (up 107.2% year on year), a record high for the first half. This result reflected higher order unit prices and successful securing of labor capacity through recruitment efforts and an enhanced partner company network. Commercial-oriented construction services showed the highest growth at 110.8% year on year, while residential-oriented services also performed solidly at 108.2% to 108.8%. Growth in gross profit more than offset an increase in selling, general and administrative expenses (due to human capital investment and subsidiary office relocation costs), resulting in a substantial increase in operating profit to ¥440 million (up 124.3% year on year) and net income for the interim period of ¥235 million (up 134.8% year on year). The full-year earnings forecast (revenue of ¥15,000 million, operating profit of ¥480 million) remains unchanged. Progress against the full-year forecast through 1H cumulative stood at 51.4% for revenue and 91.7% for operating profit.
Key Products
Growth Drivers
- Improvement in revenue and margins through continuous increases in order unit prices
- Expansion of construction capacity and workforce through stronger recruitment activities and an enhanced network of partner companies
- Increase in the number of periodic inspections and checks performed in residential-oriented construction services (a cumulative, recurring revenue model)
- Increase in interior construction projects for stores, commercial facilities, and hotels in commercial-oriented construction services amid strong inbound demand
- Continued expansion of redevelopment demand centered in urban areas
- Structural tailwind from expanding maintenance and inspection demand based on housing policy (the Basic Plan for Housing Life)
- Improved profitability through productivity gains from system-based optimization of technician utilization
Risks
- Downward pressure on demand for repair services and residential-oriented services due to the declining trend in new housing starts (cumulative April 2025 to March 2026: overall housing down to 87.1% year on year, detached houses 89.8%, condominiums 78.8%)
- Risk of increased costs due to persistently high construction material prices and supply constraints for items such as paint amid Middle East tensions
- Rising recruitment costs due to chronic shortages of skilled technical workers and intensifying competition for talent
- Constraints on construction capacity due to compliance with overtime work limit regulations
- Amortization burden (¥96 million in 1H cumulative) and impairment risk related to goodwill (¥1,634 million as of the end of March 2026) arising from past M&A and organizational restructuring
- Impact of stagnant personal consumption due to yen depreciation and price increases on housing and commercial demand
- Risk to the overall economy from financial and capital market volatility driven by U.S. trade policy, instability in Japan-China relations, and conflicts around the world
Last updated: December 22, 2025