ENVALITH
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YURTEC CORPORATION

1934・Prime Market・Construction

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株式会社ユアテック logo
YURTEC CORPORATION1934

Business

Yurtec Corporation, established in 1944, is a comprehensive facility construction company operating mainly in the six Tohoku prefectures and Niigata Prefecture. Its core business is the contracted construction of electrical, telecommunications, civil engineering, building, and air-conditioning/piping works, and it conducts business as a group including 16 consolidated subsidiaries. Its primary customer is Tohoku Electric Power Network Co., Inc. (accounting for 41.4% of net sales), from which it stably receives orders for the renewal and reinforcement of power transmission and distribution facilities. In recent years, the company has expanded its business scope beyond the Tohoku and Niigata areas to include data center construction and renewable energy-related construction. It also conducts overseas business in Vietnam and is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Contract-based business model in which the equipment construction business accounts for 98.7% of net sales of ¥252,262 million. While the company maintains a stable base of electric power infrastructure construction orders from Tohoku Electric Power Network Co., Inc., it also captures private-sector construction work such as large factories, commercial facilities, and data centers. Within the group, complementary businesses such as leasing, security, and waste disposal support the construction business. Through financial management centered on self-funding, the company continues to return value to shareholders with a consolidated dividend payout ratio of 40% or more.

Company Strengths

Sales to Tohoku Electric Power Network Co., Inc. reached ¥104,457 million (41.4% of net sales), reflecting an exceptionally high degree of transaction concentration. The company's share of completed construction contracts reached 44.8%, with continuous orders received for planned renewal work on transmission and distribution facilities and reinforcement work on core transmission networks. The relationship, dating back to the company's founding in 1944, has functioned as an entry barrier for over 80 years.

The equity ratio for FY2026 (ending March 2026) rose to 67.8% (up 4.6 percentage points year on year), marking the fifth consecutive year of increase. Total net assets reached ¥155,356 million, with operations funded largely through internal capital excluding leasing subsidiaries and similar entities. The company holds cash and cash equivalents of ¥43,082 million, and the market-value-based equity ratio has risen to 76.7%.

Even in FY2026 (ending March 2026), when net sales declined 1.9% year on year, thorough cost management drove operating profit up to ¥18,038 million (up 11.4% year on year), achieving an increase in profit. The segment profit margin for the facility construction business improved to 6.9%, with the operating profit margin rising 3.0 percentage points over four fiscal years, from 4.2% in FY2022 (ended March 2022) to 7.2% in FY2026 (ended March 2026).

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales decreased to ¥252,262 million (down 1.9% year on year), while operating profit increased to ¥18,038 million (up 11.4% year on year), achieving profit growth. However, profit attributable to owners of parent was limited to ¥10,325 million (down 13.8% year on year). This was affected by extraordinary losses of ¥3,079 million, including a one-time goodwill amortization of ¥2,017 million and an impairment loss of ¥959 million related to SIGMA ENGINEERING JSC. On an ordinary profit basis, profit increased 9.2%, and it is necessary to distinguish this from the steady improvement in the earning power of the core business.

Regarding the Vietnamese subsidiary SIGMA ENGINEERING JSC, profitability declined from initial acquisition assumptions due to the impact of the COVID-19 pandemic and a slowdown in investment in the wind power generation market, leading to a one-time goodwill amortization and impairment of customer-related assets and operating assets. On a non-consolidated basis, a valuation loss on shares of affiliated companies of ¥4,806 million was also recorded. The company aims to turn the business around by improving profitability in indoor wiring and air conditioning piping work and by actively expanding into renewable energy-related construction, but the timeline until overseas business contributes meaningfully to earnings and the possibility of additional losses remain points of attention.

The consolidated earnings forecast for FY2027 (ending March 2027) shows a bullish outlook, with net sales of ¥273,000 million (up 8.2% year on year), operating profit of ¥18,900 million (up 4.8% year on year), and profit attributable to owners of parent of ¥13,200 million (up 27.8% year on year). The sharp increase in net profit is mainly attributable to the absence of the prior period's extraordinary losses. In terms of the external environment, the rising trend in private-sector capital investment (data centers and labor-saving investment) is a tailwind, but the certainty of achieving the forecast will depend on risks of delays in progress on large-scale projects and rising labor shortages and material costs. The possibility of achieving the medium-term plan (FY2028: net sales of ¥280,000 million, operating profit of ¥20,000 million, ROE of 9.0%) ahead of schedule also continues to draw attention.

Growth Strategy

Building on the deepening of the Tohoku and Niigata base, the company aims to achieve consolidated net sales of ¥280,000 million and operating profit of ¥20,000 million in FY2028 through four priority businesses

Promoting the expansion of orders for data center construction, a growth area, and expansion into adjacent operating areas. Increased private-sector digital-related investment is providing a tailwind, and the company continues these efforts in FY2026 (ending March 2026). This is one of the key drivers toward achieving the FY2027 (ending March 2027) projected net sales of ¥273,000 million.

At the Vietnamese subsidiary, profitability declined due to the impact of the COVID-19 pandemic and the stagnation of the wind power market, and in FY2026 (ending March 2026) the company recorded extraordinary losses (goodwill lump-sum amortization of ¥2,017 million and impairment loss of ¥959 million). The company aims to achieve a turnaround by improving order profitability for indoor wiring and air-conditioning piping work, actively expanding into renewable energy-related construction, and increasing orders for ODA (Official Development Assistance) construction projects.

Due to delays in obtaining permits and approvals stemming from cost increases and stricter regulations, it is expected to take time before orders are secured, but the growth potential is judged to be high. The company is strengthening sales activities, including early information gathering and providing survey and design cooperation to project operators. Medium-term earnings contribution is expected.

Promoting order expansion through proactive proposal activities that capture customers' equipment renewal needs and by strengthening technical proposals aimed at achieving carbon neutrality by 2050. Stable order acquisition is expected through deepening relationships with existing customers.

In FY2024 results, the company achieved the operating profit and ROE targets of the medium-term management plan (2024-2028) ahead of schedule, and revised the numerical targets upward in October 2025. The FY2028 targets are consolidated net sales of ¥280,000 million, consolidated operating profit of ¥20,000 million, and ROE of 9.0%. The FY2026 (ending March 2026) operating profit of ¥18,038 million has reached approximately 90% of the target.

Last updated: July 19, 2026