YONDENKO CORPORATION
1939・Prime Market・Construction
Facility Construction Business
The core segment of the Yondenko Group. Receives orders for and constructs comprehensive facility work including power distribution, electrical, and HVAC systems.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥93,860 million | ¥100,847 million | ↓ |
| Segment profit (operating income) | ¥7,311 million | ¥6,852 million | ↑ |
| Segment profit margin | 7.8% | 6.8% | ↑ |
| Orders received (non-consolidated, construction total) | ¥93,364 million | ¥87,626 million | ↑ |
| Backlog of construction orders (non-consolidated) | ¥56,992 million | ¥47,700 million | ↑ |
| Depreciation and amortization | ¥1,174 million | ¥1,180 million | — |
| Sales to Shikoku Electric Power Group (non-consolidated) | ¥42,771 million | ¥41,119 million | ↑ |
| Sales to general private-sector customers (non-consolidated) | ¥33,210 million | ¥44,160 million | ↓ |
Business Details
The core business segment that receives orders for and constructs five types of work: power distribution construction, transmission/civil engineering construction, electrical and instrumentation construction, HVAC/piping construction, and information and communications construction. The Shikoku Electric Power Group is the leading customer, with wide-ranging business also extending to government agencies and general private-sector clients. In addition to its base in Shikoku, the segment is pursuing broader geographic expansion into the greater Tokyo area, the Kansai region, Tohoku, and other areas. Besides the parent company itself, consolidated subsidiaries such as Arimoto Onchō Co., Ltd., I Denki Tsūshin Co., Ltd., Ryōei Setsubi Kōgyō Co., Ltd., and Beltech Co., Ltd. handle construction work in their respective regions. This is the flagship segment, accounting for approximately 94% of consolidated group revenue.
Recent Overview
Revenue declined due to a rebound from large-scale projects in the prior period, but thorough cost management improved the segment profit margin to 7.8%.
In FY2026 (ending March 2026), revenue for the Facility Construction Business segment declined to ¥93,860 million (down ¥6,987 million, or -6.9%, year on year). This was mainly due to a rebound effect from large-scale electrical and instrumentation construction projects completed in the prior period (down ¥8,933 million on a non-consolidated basis) and from sales to general private-sector customers (down ¥10,950 million on a non-consolidated basis). On the other hand, thorough management of construction progress and costs resulted in segment profit of ¥7,311 million (up ¥459 million year on year), with the profit margin improving to 7.8% (from 6.8% in the prior period). Non-consolidated orders received increased to ¥93,364 million (+6.5% year on year), and the order backlog remained at a high level of ¥56,992 million (+19.5% versus fiscal year-end of the prior period), laying the groundwork for revenue growth in the next fiscal period.
Key Products
Growth Drivers
- Anticipated revenue growth in the next fiscal period (consolidated revenue forecast of ¥108,000 million, up 8.6% year on year) driven by progress on the high level of order backlog (¥56,992 million, +19.5% versus fiscal year-end of the prior period)
- Stable order intake for power distribution and transmission construction for the Shikoku Electric Power Group (non-consolidated orders received of ¥44,017 million, +6.1% year on year) and the medium- to long-term increase in renewal work for aging facilities
- Recovery in orders for electrical and instrumentation construction (non-consolidated orders received of ¥32,728 million, +11.7% year on year) and the buildup of order backlog to ¥33,497 million (+22.4% versus fiscal year-end of the prior period)
- Expansion of the earnings base for building facility construction in major metropolitan areas, backed by robust construction demand in the greater Tokyo and Kansai areas (a key theme of the Medium-Term Management Policy 2030)
- Response to the reinforcement of transmission and distribution facilities amid rising electricity demand, and the expansion of order backlog for HVAC and piping construction (¥10,304 million, +23.8% versus fiscal year-end of the prior period)
- Improvement in segment profit margin (from 6.8% to 7.8%) through thorough management of construction progress and costs
Risks
- Risk of rising construction costs and impact on construction progress due to soaring prices of materials and equipment and labor shortages (cost management across the entire supply chain is required)
- Risk of a rebound decline following the completion of large-scale projects (as demonstrated by the significant -25.1% year-on-year decline in electrical and instrumentation construction revenue in the current period)
- Dependence on sales to the Shikoku Electric Power Group (a single-customer concentration risk accounting for 50.9% of non-consolidated revenue)
- Constraints on construction capacity (difficulty in maintaining construction capabilities and rising labor costs due to a declining construction workforce population)
- Risk of fluctuations in private-sector capital expenditure due to economic conditions, the situation in the Middle East, and other factors (sales to general private-sector customers account for 39.5% of non-consolidated revenue)
- Uncertainty over whether construction capacity can be expanded in major metropolitan areas in order to achieve the numerical targets of the Medium-Term Management Policy 2030 (equivalent to FY2030 revenue of ¥120,000 million and ROE of 10.0%)
Last updated: June 19, 2026