ENVALITH
エクシオグループ株式会社 logo

EXEO Group, Inc.

1951・Prime Market・Construction

Official website
エクシオグループ株式会社 logo
EXEO Group, Inc.1951

Business

Exeo Group operates three segments: telecommunications infrastructure construction and maintenance for telecom carriers including the NTT Group (Telecom Carrier Business); social infrastructure development such as data centers, electrical, civil engineering, and environmental construction (Urban Infrastructure Business); and corporate systems and network integration (System Solutions Business). Under a group structure comprising 151 subsidiaries and 15 affiliated companies, the company combines a nationwide construction network with diverse technical capabilities to address a wide range of societal challenges, from information and communications infrastructure to renewable energy and DX support. Consolidated net sales for FY2026 (ending March 2026) were ¥787,715 million.

Business Model

Continuing to receive orders for telecom infrastructure construction from key customers NTT East, NTT West, and NTT DOCOMO (combined sales from these three companies totaled ¥223,914 million in FY2026 (ending March 2026), approximately 28% of total sales), while diversifying private and public sector customers in the Urban Infrastructure and System Solutions segments. In addition to sales recognition from construction completion, the company stabilizes earnings through recurring revenue from maintenance and operation contracts, and by locking in customers via one-stop provision of services ranging from consulting to maintenance and operations.

Company Strengths

In FY2026 (ending March 2026), the company generated ¥96,824 million (12.3% of net sales) from NTT West, ¥83,165 million (10.6%) from NTT East, and ¥43,925 million (5.6%) from NTT Docomo, with these three NTT Group companies alone accounting for approximately 28% of total net sales. Its more than 70-year track record, dating back to construction work for Nippon Telegraph and Telephone Public Corporation starting in 1954, forms a barrier to entry.

The company holds construction qualifications and technical expertise across multiple fields, including communication lines, communication equipment, electrical, air conditioning, civil engineering, and environmental plants, and has built a nationwide operating structure through 151 subsidiaries. It is expanding its scope from electrical and air conditioning work for data centers to EV charging facilities and offshore wind power, and its group-wide engineering capabilities—difficult to replicate with a single technology—underpin its competitive advantage.

In FY2026 (ending March 2026), net sales were balanced across three segments: ¥255,693 million in Telecom Carrier, ¥248,455 million in Urban Infrastructure, and ¥283,566 million in Systems Solutions. The company has a business portfolio that diversifies dependence on specific customers and specific construction projects, allowing infrastructure and SI demand to offset fluctuations in the telecom investment cycle.

ENVALITH's Perspective

Sales for FY2026 (ending March 2026) of ¥787,715 million (up 17.4% year on year) and operating profit of ¥52,016 million (up 22.5%) were driven mainly by electrical construction work for data centers in the Urban Infrastructure segment and Next GIGA-related orders in the System Solutions segment. As an external factor, the rapid expansion of data center investment driven by the spread of generative AI has been a tailwind, with Urban Infrastructure order intake remaining at a high level of ¥253,233 million (up 0.5%). Operating cash flow also improved substantially to ¥33,230 million (from ¥6,842 million in the prior period), dispelling financial concerns.

The consolidated earnings forecast for FY2027 (ending March 2027) calls for sales of ¥750,000 million (down 4.8% year on year) and operating profit of ¥56,000 million (up 7.7%). While sales are expected to decline due to the drop-off of large-scale projects from the prior period, the operating margin is expected to improve from 6.6% to 7.5%. External factors such as telecom carriers' capital expenditure cycles and trends in public investment will affect performance, but the progress in profitability improvement through stronger order selectivity and operational efficiency is commendable. The dividend is also planned to increase to ¥80 per share (from ¥68 in the prior period), targeting a DOE of 4.5%.

In FY2026 (ending March 2026), the company recorded extraordinary losses totaling ¥4,445 million, comprising an impairment loss of ¥3,486 million and a valuation loss on investment securities of ¥959 million, causing net profit growth (up 15.5% year on year) to lag behind operating profit growth (up 22.5%). In addition, long-term borrowings increased substantially from ¥57,063 million to ¥95,989 million, raising financial leverage. As a subsequent event, a resolution was also passed for share buybacks (up to ¥4,000 million), and while the effort to improve capital efficiency is commendable, the transparency of the use of the increased borrowings and the repayment plan will be a key point to watch going forward.

Growth Strategy

Under the new Medium-Term Management Plan (2026–2030), the company aims to enhance corporate value through concentrated investment in data centers, renewable energy, and DX.

Orders for electrical construction work related to large-scale data center construction, new buildings, and factories have trended favorably. The company is focusing on expanding its coverage areas and introducing the latest technologies to respond to diversifying needs driven by technological transformation in the AI field. The Urban Infrastructure segment achieved strong growth, with segment profit of ¥16,479 million (up 27.7% year on year).

The company is responding to growing demand for EV charging equipment and storage battery equipment construction, while continuing to develop human resources capable of building private power lines. In response to the trend toward renewable energy becoming a primary power source for realizing a decarbonized society, the company is accelerating the capture of investment related to storage batteries and power transmission/distribution infrastructure.

The company established a Generative AI Center and is creating business opportunities through active participation in AI-related events and exhibitions. Orders related to Next GIGA for educational institutions and local governments have been strong, and the System Solutions segment saw sharp growth, with sales of ¥283,566 million (up 41.3% year on year). The company is strengthening customer retention by offering a one-stop service ranging from high-level consulting to maintenance and operations.

The company is promoting operational efficiency through subsidiary reorganization, consolidation of business sites, and integrated operation of access and mobile services. It continues to pursue productivity improvement measures through business process reviews and the use of offshore resources, improving the segment profit margin to 9.1% (from 8.4% in the previous fiscal year). The company aims to maximize profit through cost efficiency improvements across the group.

The company plans to raise its DOE (dividend on equity ratio) from 4.0% in FY2026 (ending March 2026) to a target of 4.5% in FY2027 (ending March 2027), and to increase the annual dividend to ¥80 per share (from ¥68 in the previous fiscal year). As a subsequent event, the company resolved to acquire treasury shares (up to 2,000,000 shares / ¥4,000 million), promoting agile capital policy.

Last updated: July 19, 2026