HOKURIKU ELECTRICAL CONSTRUCTION CO.,LTD.
1930・Prime Market・Construction
Facility Construction Business
The sole reportable segment of the Hokuriku Denki Koji Group, a comprehensive facility construction business centered on electrical and plumbing construction
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated) | ¥61,028 million | ¥55,607 million | ↑ |
| Completed construction revenue (consolidated) | ¥58,869 million | ¥53,377 million | ↑ |
| Operating profit (consolidated) | ¥5,121 million | ¥4,351 million | ↑ |
| Operating margin (consolidated) | 8.4% | 7.8% | ↑ |
| Ordinary profit (consolidated) | ¥5,451 million | ¥4,611 million | ↑ |
| Profit attributable to owners of parent (consolidated) | ¥3,870 million | ¥3,187 million | ↑ |
| Orders received (non-consolidated, full year) | ¥70,824 million | ¥54,556 million | ↑ |
| Order backlog carried forward (non-consolidated) | ¥63,410 million | ¥47,407 million | ↑ |
| Equity ratio (consolidated) | 74.3% | 72.3% | ↑ |
| Net assets per share (consolidated) | ¥1,675.69 | ¥1,568.20 | ↑ |
Business Details
The company undertakes electrical construction, telecommunications construction, plumbing construction, water facility construction, fire prevention facility construction, and civil engineering work. While maintaining a base in distribution facility construction for the Hokuriku Electric Power Group, it also engages in interior wiring and air-conditioning/plumbing construction for private companies and government agencies. Through a group structure including subsidiaries, the company is centered in the Hokuriku region while expanding its sales base into major metropolitan areas. Aided by M&A effects, both net sales and profit reached record highs in FY2026 (ending March 2026).
Recent Overview
FY2026 (ending March 2026) saw double-digit growth in net sales and all profit items, with the order backlog carried forward also reaching a record high
In FY2026 (ending March 2026) (consolidated), the company achieved double-digit growth across all line items: net sales of ¥61,028 million (up 9.7% year-on-year), operating profit of ¥5,121 million (up 17.7%), ordinary profit of ¥5,451 million (up 18.2%), and net profit of ¥3,870 million (up 21.4%). This was supported by smooth progress on the construction backlog carried forward from the previous fiscal year-end, strong order intake, and M&A effects. Non-consolidated orders received increased substantially to ¥70,824 million (up 29.8% year-on-year), and the order backlog carried forward reached a record high of ¥63,410 million (up 33.8%). Notably, orders for power transmission/substation and civil engineering construction surged (up 827.7% year-on-year). The consolidated earnings forecast for FY2027 (ending March 2027) anticipates further growth, with net sales of ¥70,000 million (up 14.7% year-on-year) and operating profit of ¥6,000 million (up 17.2%).
Key Products
Growth Drivers
- A stable revenue recognition base underpinned by the order backlog carried forward reaching a record high of ¥63,410 million (up 33.8% year-on-year)
- Expanding orders for interior wiring and air-conditioning/plumbing construction (orders received during the period of ¥45,398 million, up 17.4% year-on-year), driven by robust private-sector capital investment (labor-saving and digitalization investments, logistics facilities, manufacturing plants, etc.)
- Portfolio diversification through a rapid expansion in orders for power transmission/substation and civil engineering construction (orders received during the period of ¥10,085 million, up 827.7% year-on-year)
- Stable construction contracting agreement for distribution line construction with Hokuriku Electric Power Transmission and Distribution Co., Ltd. (¥17,009 million, accounting for 31.0% of non-consolidated net sales)
- Improved construction profitability through thorough process and cost management and ongoing cost reductions (operating margin improved from 7.8% to 8.4%)
- Strengthening of order acquisition and construction capabilities in major metropolitan areas and business scale expansion utilizing M&A
- Promotion of DX, including AI utilization, to achieve labor savings, efficiency, and sophistication in operations
Risks
- Labor shortages and rising labor costs due to the declining number and aging of construction workers
- Impact on construction profitability from rising material prices (including energy market disruptions caused by factors such as the situation in the Middle East)
- Customer concentration risk due to sales dependence on the Hokuriku Electric Power Group (non-consolidated net sales to Hokuriku Electric Power Transmission and Distribution Co., Ltd. account for 32.1% of completed construction revenue)
- Impact on capital investment sentiment from uncertainty over US trade policy and volatility in financial and capital markets
- Long-term contraction of local demand in the Hokuriku region due to the declining birthrate, aging population, and population decline
- Cash flow from operating activities fell sharply to ¥554 million (from ¥7,603 million in the prior period), raising the risk of deteriorating capital efficiency if the expansion of working capital due to an increase in trade receivables (¥3,555 million) continues
Last updated: June 24, 2026