TOKYO ENERGY & SYSTEMS INC.
1945・Prime Market・Construction
Business
Tokyo Enesys Co., Ltd. is a company specializing in power and energy facility construction, founded in 1947. It handles a wide range of work, from the construction and maintenance of power generation facilities—thermal, nuclear, hydroelectric, solar, biomass, and others—to substation, general electrical, information and communications, and air conditioning facility construction. While the TEPCO (Tokyo Electric Power) Group remains its principal customer, the company is expanding into general industrial fields such as steelworks, oil refineries, and data centers. It has 10 subsidiaries and 4 affiliated companies, and also engages in power generation business, real estate, leasing, and overseas operations (Thailand and Vietnam). It is listed on the Prime Market of the Tokyo Stock Exchange. Consolidated net sales for FY2026 (ending March 2026) were ¥83,083 million.
Business Model
Revenue is mostly composed of contract construction work in the equipment construction business (net sales of ¥77,297 million in FY2026 (ending March 2026), 93% of the total). Approximately 70% of orders received are sole-source (tokumei) orders, providing a stable order base built on long-term relationships with customers. Backlog carried forward into the next fiscal period stands at ¥144,574 million (an all-time high), a structure that secures future revenue in advance. Through profitability-focused order selection and productivity improvement measures, the segment profit margin improved substantially from around 4% in FY2022 (ending March 2022) to 13.3% in FY2026 (ending March 2026). Other businesses (power generation, real estate, leasing, etc.) form a complementary source of earnings.
Company Strengths
Order backlog to be carried forward at the end of FY2026 (ending March 2026) reached a record ¥144,574 million (up 19.4% year on year). The company holds multiple large, multi-year projects on hand, including electric furnace construction for JFE Steel (scheduled for completion in July 2028) and the redevelopment of the extra-high-voltage substation at Toshiba's Yokohama facility (scheduled for completion in March 2029), providing high visibility into medium-term revenue.
In FY2026 (ending March 2026), the order acquisition mix was 69.5% negotiated (tokumei) and 30.5% competitive bidding. The company maintains ongoing business relationships with major energy and infrastructure companies, led by Tokyo Electric Power Company Holdings, along with JERA, JR East, and Japan Nuclear Fuel Limited. Its extensive construction track record in the nuclear, thermal, and hydroelectric power fields makes short-term imitation by competitors difficult.
Owing to profitability-focused order acquisition activities and the penetration of productivity improvement measures under the FY2024 medium-term management plan, the segment profit margin of the construction business improved sharply, from approximately 6.5% in FY2025 (ended March 2025) to 13.3% in FY2026 (ending March 2026). Operating profit increased 77.8% year on year to ¥4,737 million, exceeding all planned targets (21.5% above the operating profit plan).
ENVALITH's Perspective
Performance Trend
Revenue trend: ¥72,578 million (FY2022) → ¥79,055 million (FY2023) → ¥88,467 million (FY2024) → ¥67,722 million (FY2025) → ¥83,083 million (FY2026). After a sharp decline in FY2025 (down 23.5% year on year), FY2026 saw a rapid recovery with 22.7% growth, and FY2027 (ending March 2027) is forecast at ¥95,000 million (up 14.3%). Operating profit also reached ¥4,737 million (up 77.8% year on year), the highest level in the past five fiscal periods. External factors such as nuclear power plant restart investment, decarbonization-related capital expenditure, and power infrastructure investment for data centers have overlapped, resulting in a favorable order environment. Order backlog carried into the next period has reached a record high of ¥144,931 million, indicating a high probability of continued revenue growth from FY2027 (ending March 2027) onward.
Growth Strategy
Aiming to achieve an FY2027 (ending March 2027) ROE of 8% through expansion into the nuclear power, renewable energy, and general industrial fields, combined with the strengthening of human capital.
The company continues to receive orders for safety measure construction and maintenance work related to the restart of nuclear power plants across Japan. Nuclear power segment net sales reached ¥20,026 million (up 32.6% year on year), with orders received of ¥20,924 million (up 21.0% year on year), showing steady expansion. Work related to the decommissioning of Fukushima Daiichi also continues.
Progress is being made in commercializing solar power and biomass businesses utilizing the Long-Term Decarbonization Power Source Auction and PPAs. Orders received related to renewable energy roughly doubled to ¥27,656 million (up 109.1% year on year), while the backlog of construction work also expanded to ¥61,373 million (up 22.5% year on year). The Green Energy Business segment has emerged as the main driver of growth.
The profitability-focused order-taking activities pursued continuously since the previous fiscal year have taken hold, with the Electrical Construction segment margin improving significantly from 6.5% to 13.3%. To achieve an ROE of 8.0% in FY2027, the company continues order-taking activities that leverage high-value-added technical solution proposals and group synergies.
As a priority issue in the medium-term management plan formulated in fiscal 2024, the company has set out to "strengthen human capital through investment in personnel," focusing on early development of employees to improve technical capabilities and securing workforce mobilization, including through partner companies. This is being promoted in parallel with productivity improvement measures as a response to the chronic labor shortage.
Last updated: July 19, 2026