JGC HOLDINGS CORPORATION
1963・Prime Market・Construction
Business
JGC Holdings is a comprehensive engineering holding company founded in 1928. It operates two core businesses: the engineering business (approximately 91% of net sales), which handles the engineering, procurement, and construction (EPC) of various plants including oil, gas, LNG, chemicals, and life sciences facilities; and the functional materials manufacturing business, which produces catalysts, nanoparticles, fine ceramics, and other materials. Major customers include state-owned enterprises in oil- and gas-producing countries such as Saudi Aramco, international oil majors, and domestic chemical, pharmaceutical, and food manufacturers. The group consists of 58 consolidated subsidiaries and 45 affiliated companies, with a wide network of locations spanning the Middle East, Southeast Asia, North America, Oceania, and other regions.
Business Model
The integrated engineering business is centered on project-based fixed-price (lump-sum) EPC contracts, recording revenue and profit by executing large-scale projects that span several years from order receipt to completion. The order backlog (¥1,166,695 million as of the end of FY2026 (ending March 2026)) enhances visibility into future revenue. The functional materials manufacturing business generates stable cash flow through the continuous sale of products such as catalysts and ceramics, playing a role in mitigating fluctuations in EPC earnings.
Company Strengths
Holds a rich track record of completed projects in overseas LNG and oil & gas fields, including ultra-large-scale projects such as LNG Canada and Mozambique FLNG. The order backlog for the Total Engineering business stood at ¥1,155,589 million at the end of FY2026 (ending March 2026), securing multiple years of future revenue. Long-term business relationships with national oil and gas companies in producing countries form a barrier to competitive entry.
Centered on JGC Catalysts and Chemicals and Japan Fine Ceramics, the company manufactures high-functionality materials such as petroleum refining catalysts, silica sol, and high thermal conductivity silicon nitride substrates. Through the launch of a new plant in Tomiya City, Miyagi Prefecture, which expanded production capacity for silicon nitride substrates, and the acquisition of a business from the former Showa Denko Materials, the company has built an in-house product lineup and production base targeting semiconductor-related markets.
The equity ratio stood at 51.2% at the end of FY2026 (ending March 2026), improving from 49.8% in the previous fiscal year, with cash and cash equivalents of ¥400,470 million. The company obtained a long-term issuer rating of A+ from Japan Credit Rating Agency. It also holds an unused commitment line of ¥30 billion, achieving both the financial credibility necessary to execute large-scale EPC lump-sum projects and the flexible capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue declined to ¥745,280 million (versus ¥858,082 million in the prior period, -13.1%), reflecting a decrease in revenue. This was mainly due to the completion of multiple large-scale overseas projects, with revenue in the integrated engineering business at ¥679,588 million (-14.5%). On the other hand, profitability improved significantly, with operating profit of ¥35,399 million (versus -¥11,474 million in the prior period), ordinary profit of ¥58,188 million (versus ¥11,320 million in the prior period, +414.0%), and profit attributable to owners of parent of ¥41,842 million (versus -¥398 million in the prior period), marking a return to profitability. The gross profit margin improved from 2.2% to 8.6%. The recording of ¥5,699 million in foreign exchange gains also boosted ordinary profit. The company's forecast for FY2027 (ending March 2027) projects revenue of ¥670,000 million (-10.1%), operating profit of ¥40,000 million (+13.0%), and net profit of ¥46,000 million (+9.9%), anticipating continued profit growth despite a decline in revenue.
Growth Strategy
Advancing the energy transition through three pillars: deepening EPC capabilities, expanding high-performance materials, and establishing future growth engines
Secured orders including preliminary work for Mozambique FLNG, basic design for Indonesia onshore LNG, and updated basic design for LNG Canada Phase 2. Selected as preferred contractor candidate for the Papua New Guinea large-scale low-carbon LNG project. Achieving the FY2027 (ending March 2027) order intake forecast of ¥1,740,000 million is the top priority.
Launched "Nixyte," a joint EPC brand with Exyte GmbH, aiming to secure orders in the semiconductor and data center sectors in Southeast Asia. Leveraging the tailwind of expanding digital industries, the company aims to establish a new revenue source by combining JGC Global's EPC execution capabilities with Exyte's expertise.
Promoting operation of the new plant in Tomiya City, Miyagi Prefecture (increased production of high thermal conductivity silicon nitride substrates) and phased capital investment at the Kitakyushu site (semiconductor-related materials). Concurrently advancing new application development for display-use hollow silica, cosmetic materials, and optical applications.
SAFFAIRE SKY ENERGY's large-scale production demonstration facility was completed in December 2024, and SAF supply to major airlines began in FY2025. Also progressing are EPC collaboration with SLB Capturi on CO2 capture facilities and investment/discussions with CFS (nuclear fusion). All of these are in an early stage, with earnings contribution remaining a medium- to long-term challenge.
Board resolution passed in April 2026, with transfer scheduled for July 1, 2026. Transfer price of ¥30.4 billion, with an expected consolidated gain on sale of investment securities of approximately ¥20.0 billion. Proceeds from the sale will be allocated to growth investments to improve asset efficiency.
Last updated: July 19, 2026