NIPPON DENSETSU KOGYO CO., LTD.
1950・Prime Market・Construction
Company-wide (shared) / Facility construction business (single segment)
A leading specialist in electrical and telecommunications construction, operating as a single segment in the facility construction business.
| Period | Current | Previous | Change |
|---|---|---|---|
| Consolidated net sales | ¥229,207 million | ¥216,922 million | ↑ |
| Consolidated operating profit | ¥23,560 million | ¥17,934 million | ↑ |
| Consolidated ordinary profit | ¥25,278 million | ¥19,400 million | ↑ |
| Profit attributable to owners of parent | ¥18,060 million | ¥13,192 million | ↑ |
| Operating profit margin | 10.3% | 8.3% | ↑ |
| Equity ratio | 64.6% | 66.0% | ↓ |
| Consolidated orders received | ¥267,369 million | ¥223,718 million | ↑ |
| Consolidated order backlog carried forward | ¥224,253 million | ¥183,075 million | ↑ |
| Earnings per share | ¥309.26 | ¥223.84 | ↑ |
| Net assets per share | ¥3,696.08 | ¥3,335.76 | ↑ |
| Cash flow from operating activities | ¥10,521 million | -¥4,341 million | ↑ |
| Cash and cash equivalents at end of period | ¥33,710 million | ¥25,949 million | ↑ |
Business Details
The Nippon Electric Engineering (Nippon Densetsu Kogyo) Group operates as a single segment in the facility construction business, consisting of five divisions: railway electrical work, general electrical work, information and telecommunications work, environmental and energy work, and related businesses. Its largest customer is East Japan Railway Company (JR East). The group handles train line equipment, power generation/substation facilities, building electrical facilities, information and telecommunications facilities, and renewable energy construction, providing integrated services from design through construction and maintenance. In FY2026 (ending March 2026), orders received, net sales, backlog carried forward, and all profit items reached record highs.
Recent Overview
In FY2026 (ending March 2026), orders received, net sales, backlog carried forward, and profit all reached record highs.
In FY2026 (ending March 2026), the company achieved record highs across all items: consolidated orders received of ¥267,369 million (up 19.5% year on year), consolidated net sales of ¥229,207 million (up 5.7% year on year), consolidated backlog carried forward of ¥224,253 million (up 22.5% year on year), operating profit of ¥23,560 million (up 31.4% year on year), and net income of ¥18,060 million (up 36.9% year on year). Orders in the general electrical work division expanded rapidly, up 51.7% year on year, capturing demand from redevelopment projects and data centers. Operating profit was reduced by ¥93 million due to the shortening of the useful life of fixed assets (a change in accounting estimate) associated with the decision to construct a new head office building. For FY2027 (ending March 2027), the company forecasts net sales of ¥242,310 million (up 5.7% year on year) and operating profit of ¥23,890 million (up 1.4% year on year). The dividend per share was increased to ¥124 (from ¥90 in the prior period), with ¥127 planned for the next fiscal year (payout ratio of 40.1%).
Key Products
Growth Drivers
- Continued expansion of demand for safety and stable transportation investment and facility renewal from JR East and other JR companies as well as private railways
- Increased activity in station-area redevelopment construction and data center construction investment, mainly in major metropolitan areas (orders in the general electrical work division rose 51.7% year on year)
- Growing demand for renewal construction due to aging core facilities in existing buildings
- Boost to sales and profit from efficient execution of a substantial order backlog (¥224,253 million at the end of FY2026 (ending March 2026), up 22.5% year on year)
- Expansion of orders in the information and telecommunications work division through integrated planning, construction, and maintenance services in the infrastructure sharing business
- Proactive sales development in the environmental energy field, including renewable energy and grid-connected storage battery facilities, aimed at achieving a decarbonized society
Risks
- Risk of revenue concentration in East Japan Railway Company (JR East) (the railway electrical work division accounts for 52.4% of consolidated net sales)
- Seasonal fluctuation risk from construction completion and handover being concentrated in the fourth quarter
- Risk of rising construction costs due to surging raw material prices and inflation
- Risk of economic downside stemming from the impact of U.S. trade policy and its effect on private-sector capital investment
- Risks related to securing personnel and maintaining construction capacity (strengthening the construction system, including partner companies, is explicitly identified as a management challenge)
- Increased financial risk associated with a rise in short-term borrowings (from ¥4,100 million in the prior period to ¥12,200 million in the current period)
- Impact on profit from changes in accounting estimates, such as the shortening of useful lives of fixed assets associated with the planned construction of a new head office building
Last updated: June 23, 2026