ENVALITH
E・Jホールディングス株式会社 logo

EJ Holdings Inc.

2153・Prime Market・Services

Official website
E・Jホールディングス株式会社 logo
EJ Holdings Inc.2153

Business

E・J Holdings is a pure holding company established in 2007 through the business integration of Eight Consultants Co., Ltd. and Nippon Koei Co., Ltd. Through its 14 consolidated subsidiaries, the company operates a comprehensive construction consulting business that provides an integrated range of services covering the entire infrastructure development process, from planning and design to diagnosis, management, client support, compensation consulting, surveying, and geological investigation. Its main customers are public sector entities, including the Ministry of Land, Infrastructure, Transport and Tourism (24.2% of net sales), prefectural governments (30.6%), and municipal governments (16.4%), and its primary business domain is public works projects directly linked to solving social issues, such as disaster prevention/mitigation, national resilience, infrastructure aging countermeasures, and GX (green transformation) promotion. Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company receives orders for planning, design, survey, and management work related to public works projects commissioned by government agencies, recognizing revenue as specialized engineers complete and deliver work products. The business consists of two segments: construction consulting operations (net sales of ¥33,472 million) and survey operations (net sales of ¥9,232 million). Revenue is generated through the completion of total work volume, which is the sum of the order backlog carried over from the beginning of the period and new orders received during the period. The order backlog of ¥31,943 million also provides a stable, stock-type element supporting revenue in subsequent periods.

Company Strengths

Following the June 2025 Cabinet decision on the "1st Mid-Term Implementation Plan for National Resilience," measures totaling approximately ¥20 trillion over the five years from FY2026 have been confirmed. Order intake for FY2025 (ended May 2025) reached ¥44,651 million (115.2% year-on-year), and the order backlog reached ¥31,943 million (115.3% year-on-year), both increasing, and a stable volume of work is expected to be secured over the medium term.

The company has a structure enabling it to complete both construction consulting operations (design, diagnostics, management, client support services, compensation consulting, etc.) and survey operations (surveying, geological investigation) entirely within a single group. Fourteen consolidated subsidiaries handle their respective specialized fields, with the core company, EIGHT-JAPAN ENGINEERING CONSULTANTS INC., overseeing the comprehensive construction consulting business as a whole.

In September 2024, Tokyo Soil Research Co., Ltd. was made a wholly owned subsidiary, causing revenue from survey operations to expand rapidly to ¥9,232 million (200.2% year-on-year). The group has continued to carry out multiple M&A transactions since 2019, steadily expanding its business foundation.

ENVALITH's Perspective

In FY2026 (ending May 2026), revenue accelerated to ¥46,586 million (up 9.1% year on year), while the operating margin declined to 10.0% (versus 10.5% in the prior period). Selling, general and administrative expenses swelled to ¥11,035 million (from ¥9,770 million in the prior period), driven by a combination of factors: higher personnel costs from improved compensation at group companies, a rising cost ratio due to revised order prices with partner companies, increased goodwill amortization (¥391 million, versus ¥300 million in the prior period), and higher R&D expenses (¥234 million, versus ¥105 million in the prior period). Continued compensation improvements, including wage increases, are also expected in the FY2027 forecast, making it critical for margin recovery whether process innovation through DX utilization can improve production efficiency.

Revenue breakdown consists of ¥10,625 million from central government ministries, ¥22,292 million from local governments, ¥13,312 million from private sector and others, and ¥356 million from overseas, with dependence on public sector clients reaching approximately 70%. As an external factor, the FY2025 Ministry of Land, Infrastructure, Transport and Tourism budget has been secured stably at the same level as the previous year, and progress on the National Resilience Implementation Medium-Term Plan is providing a tailwind; however, the impact on business performance would be significant if public works budgets were cut or policy changes occurred. In addition, the structure in which revenue is skewed toward the second half remains unchanged, and forecasting first-half performance continues to be extremely difficult, resulting in low visibility for full-year results.

The targets for the final year (FY2028, ending May 2028) of the 6th Medium-Term Management Plan "E・J-Plan2027" are revenue of ¥50.0 billion, operating profit of ¥5.9 billion, and ROE of 10% or higher. The FY2027 (ending May 2027) forecast calls for revenue of ¥49,000 million (up 5.2% year on year) and operating profit of ¥5,300 million (up 13.5% year on year), progressing steadily toward the revenue target; however, the forecast operating margin of 10.8% falls short of the final target level of 11.8% (¥5.9 billion / ¥50.0 billion). Earnings per share stood at ¥189.35 (versus ¥204.06 in the prior period), reflecting dilution, and the impact of the increase in share count from the public offering (2,300,000 shares issued) in FY2026 (ending May 2026) is becoming apparent, which warrants attention.

Growth Strategy

Under the 6th Medium-Term Management Plan 'E・J-Plan2027,' the company aims for net sales of ¥50.0 billion and operating profit of ¥5.9 billion in FY2028 (ending May 2028).

Deepening existing construction consulting and survey businesses while promoting expansion into new domains. Orders received for survey business in FY2026 (ending May 2026) surged 44% year-on-year to ¥10,242 million, and diversification of the business portfolio is progressing.

Promoting overseas expansion through EJEC (Thailand) Co., Ltd. and other entities. Overseas sales in FY2026 (ending May 2026) struggled, declining to ¥356 million (down from ¥466 million in the previous period), and efforts toward full-scale development continue.

R&D expenses were doubled to ¥234 million (from ¥105 million in the previous period) to promote product innovation. In FY2027 (ending May 2027), the company aims to improve production efficiency through process innovation utilizing DX, absorbing the rise in cost ratio and restoring operating margin.

Continuing progressive dividends targeting a DOE of 3.0% or higher. The annual dividend for FY2026 (ending May 2026) is ¥69 (up from ¥67 in the previous period), and for FY2027 (ending May 2027), a total of ¥82 is planned, consisting of an ordinary dividend of ¥72 plus a commemorative dividend of ¥10 (for the 20th anniversary of founding). The company also continues to reduce cross-shareholdings to improve capital efficiency.

Last updated: July 17, 2026