AKATSUKI EAZIMA CO., LTD.
1997・Standard Market・Construction
Business
Akatsuki Iijima Kogyo Co., Ltd. was founded in 1947 and is a building equipment construction company headquartered in Mito City, Ibaraki Prefecture. Its core business is the equipment segment, centered on the design, construction, and maintenance management of air conditioning, water supply and drainage, and sanitary equipment installations, complemented by other businesses such as solar power generation and electricity sales using company-owned equipment, as well as real estate sales and leasing. Its main customers are facility owners in the medical, education, logistics, and government sectors, as well as major general contractors, and while its operations are centered on Ibaraki Prefecture, it also maintains a Tokyo Branch within Tokyo. The company transitioned to the Standard Market of the Tokyo Stock Exchange in 2022 and remains listed on that market.
Business Model
The Equipment business, which accounts for approximately 97.9% of net sales, handles the entire process from order intake for building equipment construction, renovation work, and building care work through to construction and completed handover. The company has a revenue structure that improves construction profit margins through strengthened profitability at the time of order intake, cost management, and thorough construction management. In addition, solar power sales revenue under the FIT system (net sales of ¥190 million, operating margin of approximately 40.1%) functions as stable, fixed income.
Company Strengths
In the second medium-term management plan with FY2026 (ending August 2026) as its final year, key KPIs exceeded targets as of FY2025 (ended August 2025): orders received of ¥10,204 million (target: ¥8,800 million), operating margin on net sales of 12.3% (target: 10.0%), and ROE of 11.1% (target: 8.0%).
Order backlog (carried-forward construction volume) at the end of FY2025 (ended August 2025) reached ¥8,789 million, a scale comparable to the ¥8,945 million in completed construction revenue for the period. Orders received in the first half of FY2026 (ending August 2026) also expanded sharply, up 40.6% year on year, further solidifying the revenue base for subsequent periods.
The ratio of sole-source (negotiated) orders in renewal construction work reached 68.4% in FY2025 (ended August 2025), up from 36.5% in the prior fiscal year, demonstrating strong relationships with existing customers. Completed construction revenue from renewal work rose 38.0% to ¥4,679 million from ¥3,391 million in the prior fiscal year, with stable order intake from the existing customer base contributing to revenue growth.
ENVALITH's Perspective
Performance Trend
Revenue recovered from a trough of ¥6,637 million in FY2023 (ending August 2023) to ¥9,136 million in FY2025 (ending August 2025), with the full-year FY2026 (ending August 2026) forecast at ¥9,500 million (up 4.0% year on year), indicating a stable growth trajectory. On the profit side, improvement in construction gross margin has been notable, with operating profit expanding sharply from ¥442 million in FY2023 (ending August 2023) to ¥1,127 million in FY2025 (ending August 2025), and the full-year FY2026 (ending August 2026) forecast standing at ¥1,350 million (up 19.8% year on year). For the cumulative nine months of FY2026 (ending August 2026), revenue was ¥7,070 million (up 3.6% year on year), while operating profit reached ¥1,079 million (up 13.7%), ordinary profit ¥1,125 million (up 15.7%), and quarterly net profit ¥780 million (up 17.7%) — profit growth significantly outpacing revenue growth. As external factors, headwinds include intensified competition for orders driven by rising construction material prices and a shortage of skilled labor, while sustained levels of government and private construction investment have had a positive effect. Quarterly net profit per share rose steadily to ¥385.97 (versus ¥327.76 in the same period of the prior year).
Growth Strategy
VISION2030 Phase II: Establishing a high-profitability structure and building the foundation for next-stage growth through energy-saving and renovation proposals
The company aims to achieve profit growth exceeding sales growth through stricter profitability screening at order acceptance, thorough cost management, and construction management. The improvement in the equipment business segment's operating profit margin to 19.5% (versus 17.6% in the same period of the prior year) for the cumulative nine months of FY2026 (ending August 2026) Q3 demonstrates the effectiveness of these measures. The full-year operating profit margin forecast of 14.2% represents a significant improvement from 12.3% in FY2025 (ended August 2025).
The company is strengthening its future sales base by expanding orders for building equipment construction and renovation work, thereby building up its construction backlog. Progress has been steady, with cumulative orders received for the nine months of FY2026 (ending August 2026) Q3 at ¥9,688 million (up 19.2% year on year) and construction backlog at ¥11,532 million (up 28.6% year on year). Completed construction revenue from building equipment construction expanded rapidly, up 45.0% year on year, with its share of sales composition shifting from 38.9% to 54.4%.
The company aims to enhance corporate value by reflecting improved business performance in shareholder returns. The annual dividend forecast for FY2026 (ending August 2026) has been substantially increased to ¥135 (up ¥25 from ¥110 in the previous fiscal year). A revision (increase) to the dividend forecast was announced on June 29, 2026. The company is also working to secure human resources and improve treatment, as reflected in the 16.2% year-on-year increase in employee salaries and allowances.
Last updated: July 17, 2026