ETS Group Co., Ltd.
253A・Standard Market・Construction
Business
ETS Group Co., Ltd. is a comprehensive infrastructure construction group listed on the TSE Standard Market, having transitioned to a holding company structure in October 2024. Its roots trace back to Yamaka Denki Kogyo, founded in 1935, giving the group a 90-year history. Its core electrical construction business (approximately 85% of net sales) handles overhead and underground transmission line construction, substation construction, and extra-high-voltage substation equipment construction, with Tohoku Electric Power Network and TEPCO Power Grid as its main clients. Its real estate-related business (approximately 15%) covers condominium management, building cleaning, and building facility maintenance. Comprising 7 consolidated subsidiaries, the group supports social infrastructure through the development and maintenance of electric power infrastructure.
Business Model
The Electrical Construction Business operates on a build-to-order basis, receiving orders for construction work from electric power companies and private operators, with sales recognized upon completion. In FY2025 (ending September 2025), orders received totaled ¥14,934 million and the order backlog stood at ¥15,263 million, maintaining a level that exceeds net sales and providing high revenue visibility. The Real Estate-Related Business adopts a composite revenue model that combines stable recurring income from condominium and building management contracting with incorporation of repair and interior construction work.
Company Strengths
The operating margin on net sales for FY2025 (ending September 2025) came to 6.4%, exceeding the group's target of 5.0% by 1.4 points. The Electrical Construction segment posted a segment margin of 5.4%, while the Real Estate-related segment achieved 9.1%, with both segments contributing to profitability. Steady progress on large-scale construction projects drove the improvement in margins.
As of September 30, 2025, the order backlog stood at ¥15,263 million (Electric Power business: ¥10,230 million; Facilities business: ¥5,032 million), substantially exceeding net sales of ¥11,261 million for the period. The company has secured multiple large-scale, multi-year projects, including a substation for a data center (scheduled for completion in June 2027) and wind power plant construction (scheduled for completion in March 2027), providing high visibility into medium-term revenue.
The company received its first order for 275kV transmission line construction in Japan in 1950, followed by Japan's first 500kV order in 1965 and Japan's first 1,000kV transmission line order in 1988, establishing a track record in the highest voltage class of construction in Japan. It also has overseas construction experience (South Vietnam, 1961), and this technological superiority underpins long-term business relationships with major electric power companies.
ENVALITH's Perspective
Performance Trend
Consolidated revenue for the first half of FY2026 (ending March 2026), covering October 2025 to March 2026, was ¥5,687 million (up 12.2% year on year), operating profit was ¥722 million (up 88.8% year on year), and net income attributable to owners of the parent for the first half was ¥433 million (up 89.9% year on year), achieving substantial growth in both revenue and profit. In the Electrical Construction Business, steady progress on transmission line construction and extra-high-voltage substation construction, combined with improved construction profitability, significantly boosted profit. The Real Estate-Related Business also saw increased revenue and profit driven by strength in the building management business. As an external factor, robust corporate capital expenditure appetite supported construction demand, while the surge in materials prices and labor costs continued. Compared with past results, against full-year FY2025 (ended September 2025) revenue of ¥11,261 million and operating profit of ¥717 million, the full-year forecast for FY2026 (ending September 2026) is revenue of ¥11,850 million and operating profit of ¥777 million, projecting continued growth in both revenue and profit.
Growth Strategy
While capturing the structural expansion in demand for electrical infrastructure, the company is pursuing diversified growth through service area expansion and real estate M&A.
By expanding the construction service area beyond the Tohoku region (into the TEPCO service area and the Chugoku and Shikoku areas), the company aims to reduce dependence on specific customers while improving profit margins through enhanced construction profitability management. The gross profit margin on completed construction work for the first half improved significantly to 22.1% (versus 17.4% in the same period of the previous year), indicating that profitability improvement efforts are bearing fruit.
Through the acquisition (via corporate split) of the Hiroshima-area real estate management business from Ams International Co., Ltd. (acquisition consideration of ¥400 million), the company aims to increase the number of managed properties under contract and strengthen its stable revenue base. The purpose is to stabilize the revenue portfolio to offset fluctuations in the electrical construction business's earnings.
By constructing a hotel accommodation facility (construction cost of ¥1,200 million) in Higashiyama Ward, Kyoto City, the company aims to diversify earnings within its real estate-related business. The goal is to establish a new revenue source that captures tourism demand.
With FY2026 (ending September 2026) positioned as the final year of the medium-term management plan, the company aims to achieve consolidated net sales of ¥11,850 million and operating profit of ¥777 million. As of the interim period, the progress rate for operating profit had reached 92.9%, indicating a high likelihood of achieving the target. There has been no revision to the full-year earnings forecast.
Last updated: July 17, 2026