KINDEN CORPORATION
1944・Prime Market・Construction
Business
Kinden Corporation, established in 1944, is a comprehensive facility construction company whose main businesses are electrical construction (distribution lines, general electrical work, transmission lines, and substations), telecommunications construction, environment-related construction (air conditioning and piping work, etc.), interior facility construction, and civil engineering work. With the Kansai Electric Power Group as its parent company, it serves a broad customer base ranging from distribution construction for Kansai Transmission and Distribution to large-scale building electrical facility work via major general contractors, as well as factories, logistics facilities, hospitals, and government facilities. Domestically, it operates a nationwide branch network, and overseas it has subsidiaries in Hawaii, Southeast Asia, the Middle East, and India. As a group comprising 25 consolidated subsidiaries, it is a major industry player boasting completed construction revenue of ¥750,742 million (FY2026 (ending March 2026)).
Business Model
A contract-based business model in which orders are received from customers and revenue is recognized as completed construction revenue upon completion of construction. Order intake is secured through three pillars: negotiated orders (55.3% of the ratio in FY2026 (ending March 2026)), competitive bidding (33.7%), and power distribution-related contract work with the Kansai Electric Power Group (11.0%). The backlog of construction work in hand at period-end, ¥581,797 million (up 23.2% year on year), underpins the revenue base for the following periods and enhances the stability of business performance.
Company Strengths
Operating profit for FY2026 (ending March 2026) reached ¥90,256 million (up 48.0% year on year), with an operating margin of 12.0%, marking record highs since founding in both completed construction revenue and all profit line items. The industry practice of securing appropriate construction periods and appropriate contract amounts—driven by the revised "Tenninte Sanpo" (Three Laws Concerning Construction Workforce)—took root, and combined with the company's own productivity improvements and cost reduction efforts, profitability improved substantially.
Order backlog as of the end of March 2026 reached ¥581,797 million (up 23.2% year on year), with general private-sector clients accounting for 89.1%. This includes large-scale projects such as the new National Archives of Japan building (scheduled for completion in March 2029) and the new main building of the World Trade Center Building (scheduled for completion in March 2027), providing visibility into multi-year revenue foundations.
In addition to a nationwide branch network covering Tohoku, Kanto, Chubu, Kansai, Chugoku, Shikoku, Kyushu, and Hokkaido, the company opened a new office in the greater Tokyo area (Kinden Toyosu Building). It handles five work categories—power distribution, general electrical work, information and communications, environment-related work, and other electric power work—and maintains a broad client base including the Kansai Electric Power Group, major general contractors, government agencies, and general private companies. Non-consolidated new orders received for FY2026 (ending March 2026) reached ¥722,197 million.
ENVALITH's Perspective
Performance Trend
Net sales rose for five consecutive fiscal years, from ¥566,794 million (FY2022, ended March 2022) to ¥750,742 million (FY2026, ending March 2026). Over the same period, operating profit expanded roughly 2.4-fold, from ¥37,087 million to ¥90,256 million, with the operating margin improving markedly from 6.5% to 12.0%. External factors—robust private-sector capital expenditure demand (factories, logistics facilities, data centers, etc.), a rapid expansion in power infrastructure investment, and the entrenchment of appropriate pricing practices across the industry—contributed to the margin improvement. For FY2027 (ending March 2027), the company forecasts consolidated net sales of completed construction contracts of ¥810,000 million (up 7.9% year on year) and operating profit of ¥97,000 million (up 7.5% year on year).
Growth Strategy
Pursuing human capital investment, expansion of business infrastructure, and M&A alongside active shareholder returns
Expenditure for acquisition of fixed assets surged to ¥53,597 million (approximately 4x the ¥13,483 million in the prior period). Buildings and structures increased from ¥105,354 million to ¥149,394 million, and land increased from ¥62,945 million to ¥96,087 million, as investment to strengthen future earnings power—such as reinforcing Tokyo metropolitan area bases and educational facilities—gains momentum in earnest.
In FY2026 (ending March 2026), Hokko Densha Co., Ltd. was newly consolidated (expenditure for acquisition of subsidiary shares accompanying a change in the scope of consolidation: ¥19,021 million). Goodwill increased from ¥1,875 million to ¥13,554 million. This simultaneously deepened regional focus and expanded business scale, contributing to an increase in consolidated net sales of completed construction contracts.
Having achieved the growth targets of the medium-term management plan, an annual dividend of ¥240 for FY2027 (ending March 2027), including a special dividend of ¥100 (payout ratio of 59.0%), is planned. A tender offer for treasury shares has also been resolved, simultaneously pursuing improved EPS and enhanced capital efficiency. Net assets per share for FY2026 (ending March 2026) steadily increased to ¥3,340.44.
Last updated: July 19, 2026