HOKURIKU ELECTRICAL CONSTRUCTION CO.,LTD.
1930・Prime Market・Construction
Business
Hokuriku Electric Construction Co., Ltd. was established in 1944 and is listed on the Prime Market of the Tokyo Stock Exchange as a comprehensive facility construction company. It undertakes electrical construction, telecommunications construction, piping construction, water facility construction, fire-fighting facility construction, and civil engineering construction. While its base is in the three Hokuriku prefectures, it operates a nationwide network of 7 branches, 3 sub-branches, and 16 sales offices, including in Tokyo and Osaka. Its main customers are the Hokuriku Electric Power Group (distribution line and transmission/substation construction), government agencies, and private companies (logistics facilities, manufacturing plants, commercial facilities, etc.). Its subsidiaries include Skalt (electrical construction) and Kamohara Setsubi Kogyo and Nikken (piping construction), and the group also engages in real estate leasing, climbing facilities, PFI projects, and overseas leasing. Consolidated net sales were ¥61,028 million (FY2026, ending March 2026).
Business Model
The majority of revenue is derived from contracted construction work in the facility construction business. The construction contract with Hokuriku Electric Power Transmission & Distribution Company (¥17,009 million, accounting for 31.0% of non-consolidated net sales) forms a stable revenue base, while interior wiring and air-conditioning/piping work (competitive bidding and negotiated contracts) for private-sector capital expenditure serves as the growth driver. Thorough process management and cost control enhance construction profitability, forming a structure that continuously improves the operating margin. All capital expenditure is funded through internal resources, and the company maintains a debt-free management policy.
Company Strengths
Backlog for construction to be carried over to the next fiscal period (consolidated) as of the end of FY2026 (ending March 2026) reached ¥63,410 million, up 33.8% year on year and marking a record high level. On a non-consolidated basis as well, the company secured ¥62,857 million (up 34.9% year on year). With order backlog accumulating to a substantial level, sales recognition in subsequent periods can be projected with high confidence, underscoring the stability and predictability of business performance.
The construction contracting agreement with Hokuriku Electric Power Transmission & Distribution Company accounts for 97.0% of orders received for distribution line construction, and stably generates 31.3% (¥16,572 million) of non-consolidated completed construction revenue. The long-standing business relationship, dating back to the company's establishment in 1944, and the accumulated track record constitute an entry barrier, giving the company a structural advantage that would be difficult for competitors to replicate in a short period.
The operating margin improved from 7.8% in FY2025 (ended March 2025) to 8.4% in FY2026 (ending March 2026). Gross profit on completed construction contracts also increased 13.0% year on year to ¥11,247 million. The company has continued to thoroughly implement process and cost management along with across-the-board cost reductions, and the resulting margin improvement amid revenue growth can be confirmed as an actual achievement.
ENVALITH's Perspective
Performance Trend
Consolidated net sales bottomed out at ¥44,846 million in FY2023 (ended March 2023), and the pace of the ensuing three consecutive years of revenue growth has accelerated, with FY2026 (ending March 2026) sales reaching a record ¥61,028 million (up 9.7% year on year). Operating profit of ¥5,121 million (up 17.7% year on year), ordinary profit of ¥5,451 million (up 18.2% year on year), and profit attributable to owners of parent of ¥3,870 million (up 21.4% year on year) all likewise reached record highs. The operating margin improved to 8.4% (from 7.8% in the previous period). The revenue growth was driven by steady progress on the order backlog carried over from the previous fiscal year-end, robust order intake, and M&A effects. As external factors, strong private-sector capital expenditure demand and demand for power infrastructure renewal served as tailwinds. On the other hand, operating cash flow fell sharply to ¥554 million (from ¥7,603 million in the previous period) due to an increase in trade receivables. For FY2027 (ending March 2027), the company forecasts consolidated net sales of ¥70,000 million (up 14.7% year on year) and operating profit of ¥6,000 million (up 17.2% year on year).
Growth Strategy
The company is advancing "Action Plan 2027" along four pillars: expanding Hokuriku market share, strengthening its presence in major metropolitan areas, pursuing M&A, and deepening DX.
While maintaining stable orders from the Hokuriku Electric Power Group as a foundation, the company aims to expand orders for private-sector capital investment projects in the Hokuriku region. Non-consolidated orders received in FY2026 (ending March 2026) increased significantly to ¥70,824 million (up 29.8% year on year), demonstrating results from efforts to expand regional market share.
The company is advancing order acquisition and building construction capabilities in major metropolitan areas outside the Hokuriku region. Orders from general customers, centered on interior wiring and air conditioning/piping work (non-consolidated orders received of ¥50,592 million, comprising 71.4% of the total), have been expanding, strengthening the earnings base through regional diversification.
The company disclosed that M&A contributed to the increase in net sales in FY2026 (ending March 2026). Orders received for power transmission/transformation and civil engineering work expanded sharply, up 827.7% year on year to ¥10,085 million, advancing diversification of the construction-type portfolio. Expenditures of ¥209 million for the acquisition of subsidiary shares were also recorded.
Through the further promotion of DX, including the utilization of AI, the company aims to achieve labor savings, efficiency improvement, and sophistication of operations, pursuing management that simultaneously reduces labor burden and enhances added value. Together with thorough process management and cost control, this has contributed to an improvement in the operating margin (from 7.8% to 8.4%).
The company is actively investing in securing and developing human capital for sustainable growth. Non-consolidated employee salaries and wages increased from ¥2,374 million to ¥2,533 million. A new employee stock benefit reserve (J-ESOP) was established (¥231 million) to improve employee treatment and retention rates.
Last updated: July 19, 2026