KRAFTIA CORPORATION
1959・Prime Market・Construction
Business
Craftier Corporation (formerly Kyudenko Corporation) is a comprehensive facility construction company founded in 1944. Its core operations are the design and construction of electrical works—such as distribution line construction, indoor wiring construction, and telecommunications construction—and air conditioning and piping works, including air conditioning, heating and cooling, water supply and drainage sanitation equipment, and water treatment construction. Based on contracts with the Kyushu Electric Power Group, the company holds a strong position in Kyushu while also expanding into the Greater Tokyo and Kansai areas. The group consists of the company, 63 subsidiaries, and 51 affiliated companies, and also operates peripheral businesses such as renewable energy power generation, real estate, software development, staffing services, and medical-related businesses. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Facility construction, accounting for approximately 96% of net sales, generates revenue through a combination of stable orders from a contract with Kyushu Electric Power Transmission and Distribution Company (approximately 11.6% of net sales) and exclusively negotiated (tokumei) orders for large-scale private-sector projects in the Greater Tokyo and Kansai areas (78.9% of indoor wiring work is tokumei). The company continues to improve construction gross margin through price pass-through of cost inflation combined with optimal staffing allocation and selective order-taking. In peripheral businesses, stock-type businesses such as renewable energy power generation and real estate supplement earnings stability.
Company Strengths
The distribution work outsourcing contract with Kyushu Electric Power Transmission and Distribution Co., Inc. accounts for 84.2% of contracts by order method, and sales to the company in FY2026 (ending March 2026) were ¥55,104 million (11.6% of net sales). This relationship has continued for nearly 80 years since the outsourcing agreement was concluded in 1947, forming a unique contractual foundation that would be difficult for competitors to replace in a short period.
In FY2026 (ending March 2026), segment profit in the facility construction business was ¥51,219 million (up 34.8% year on year), with an operating margin of approximately 11.2%. Management has confirmed that projected profit margins at the time of order intake have improved compared to previous years, driven by in-house initiatives such as front-loading, a dedicated cost-reduction team (Technical Management Department), and early materials procurement (in collaboration with Q-mast Co., Ltd.).
The order backlog carried forward for the facility construction business at the end of FY2026 (ending March 2026) stood at ¥476,049 million (up 4.8% year on year). This includes large-scale projects such as construction work on the Ukujima megasolar park power plant (scheduled for completion from FY2027 onward), the Otemachi Tokiwabashi redevelopment (scheduled for completion in May 2028), and the Fukuoka Airport domestic terminal complex facility (scheduled for completion in May 2027), securing a substantial portion of sales for future periods.
ENVALITH's Perspective
Performance Trend
Revenue increased 26.5% over five fiscal periods, from ¥376,563 million in FY2022 (ended March 2022) to ¥476,123 million in FY2026 (ending March 2026). Operating profit rose 64.8% over the same period, from ¥33,137 million to ¥54,600 million, with profit growth substantially outpacing revenue growth. In FY2026 (ending March 2026), revenue grew just 0.5% year on year, while operating profit surged 31.9% year on year, highlighting a sharp improvement in profitability. External tailwinds from robust capital expenditure demand for private urban redevelopment, data centers, and integrated resorts, combined with an improved pricing environment, lifted the gross profit margin on completed construction contracts from 14.5% to 17.9%. Profit attributable to owners of parent came to ¥40,053 million (up 38.7% year on year), and ROE improved to 12.2% from 9.6% in the previous period. For FY2027 (ending March 2027), the company forecasts revenue of ¥500,000 million (up 5.0% year on year) and operating profit of ¥55,500 million (up 1.6% year on year), pointing to a slowdown in the pace of profit growth.
Growth Strategy
Under the Medium-Term Management Plan "Challenge & Grow 2029," the company aims to achieve ordinary income of ¥60.0 billion and ROIC of 10% or higher in fiscal 2029.
The company continues planned order-taking activities based on optimal staffing allocation, focusing on redevelopment projects in the Greater Tokyo area, the Kansai region and Fukuoka, data center-related construction, and integrated resort projects. By maintaining and improving the gross profit margin on completed construction of 17.9% recorded in FY2026 (ending March 2026), the company aims to achieve equipment construction business net sales of ¥481,500 million and construction orders received of ¥495,000 million in FY2027 (ending March 2027).
The company has set a total investment of ¥200 billion for the Medium-Term Management Plan period, promoting strategic acquisition of investment securities (balance at fiscal year-end of ¥97,872 million), renewable energy power generation businesses (Kuzuo Wind Power, Craftier Innovation Investment Limited Partnership, etc.), and investment in the real estate business. Cash outflow from investing activities in the current fiscal year was ¥18,143 million, roughly double the previous fiscal year, indicating that the investment phase is entering full swing.
Under the theme "Challenge2026: Establishing Growth Areas with an Eye on the Future," the company is implementing 11 initiatives and 5 investment strategies. Recognizing the tightening labor supply-demand balance and population decline-driven labor shortages as an ongoing management issue, the company aims to maintain and expand construction capacity and deepen technical capabilities by strengthening investment in human capital management.
Under a progressive dividend policy targeting a consolidated payout ratio of around 40%, the company paid an annual dividend of ¥220 (up ¥80 year on year, payout ratio of 38.9%) in FY2026 (ending March 2026). An annual dividend of ¥220 is also planned for FY2027 (ending March 2027). Total dividends paid increased significantly to ¥15,589 million from ¥9,920 million in the previous fiscal year, with the enhanced shareholder returns supported by a financial base with a capital adequacy ratio of 66.4%.
The company plans to acquire the construction site for the Sasebo-side AC/DC converter station by the end of April 2026. The construction contract is scheduled to be concluded after ground surveys are completed, and completion is now expected to be delayed beyond the originally planned fiscal 2026 timeframe. On the SPC side, the company is considering revising to new profit-improvement schemes, including converting to the FIP (Feed-in Premium) system, utilizing corporate PPAs, and other measures to improve project viability in light of social conditions.
Last updated: July 19, 2026