KYOWANISSEI CO., LTD.
1981・Standard Market・Construction
Building Equipment Business
New core business handling water supply/sanitation, air conditioning, and renovation work
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Cumulative 3Q) | ¥4,625 million | ¥2,723 million | ↑ |
| Ordinary Income (Cumulative 3Q) | ¥252 million | △¥170 million | ↑ |
| Orders Received (Cumulative 3Q) | ¥7,011 million | ¥3,324 million | ↑ |
| Order Backlog (End of 3Q) | ¥5,243 million | ¥3,399 million | ↑ |
| Increase in Tangible/Intangible Fixed Assets (Prior Full Year) | ¥12 million | ¥9 million | ↑ |
Business Details
This segment handles water supply and drainage/sanitation equipment work, air conditioning equipment work, renovation work (including miscellaneous drainage pipe lining work), heating/cooling and hot water supply work for multi-family housing, and GHP construction and maintenance. Main customers include general contractors, regional construction firms, and multi-family housing owners. Under the medium-term management plan "Triple S," it is positioned as a new core business alongside the gas pipeline business, responsible for reducing dependence on a single customer through strengthened comprehensive order-taking and construction capabilities.
Recent Overview
Cumulative 3Q sales surged 69.8% year-on-year, with ordinary income turning positive from a loss
For the cumulative nine months of FY2026 (ending March 2026) (April to December 2025), sales were ¥4,625 million (up 69.8% year-on-year) and ordinary income was ¥252 million (versus an ordinary loss of ¥170 million in the same period of the prior year), marking substantial improvement. Orders for water supply/sanitation equipment work and facility air conditioning work for multi-family housing and other properties trended very favorably, while increased completions of large-scale factory maintenance projects and steady progress in the GHP maintenance business also contributed. Orders received for the period totaled ¥7,011 million (more than doubling from ¥3,324 million in the same period of the prior year), and the order backlog built up to ¥5,243 million, raising expectations for sales contribution in future periods.
Key Products
Growth Drivers
- Sharp increase in orders for water supply/sanitation equipment work and air conditioning work for multi-family housing and facilities (cumulative 3Q orders received more than doubled year-on-year)
- Increase in completions of large-scale projects in factory facility maintenance work (underpinned by resilient corporate capital expenditure appetite)
- Steady expansion of the GHP maintenance business, building up recurring stock-type revenue
- Advancement of comprehensive order-taking and construction system development under the policy of establishing this as a new core business in the medium-term management plan "Triple S"
- Steady trends in the existing building reform/renovation market and contribution from energy-saving subsidy policies
Risks
- Risk of delayed progress on large-scale projects with long construction periods (thorough schedule management remains a challenge)
- Concerns over rising construction costs and deteriorating profitability due to persistently high material prices and rising labor costs
- Chronic shortage of engineers and construction personnel (worsening labor shortage across the construction industry as a whole)
- Continued sluggishness in housing starts (2024 saw a second consecutive year of decline, down 27,525 units year-on-year to 792,098 units)
- Risk of sales volatility in renovation work due to irregular timing of large-scale project completions
Last updated: June 25, 2026