Yashima Denki Co., Ltd.

Business Details

Core operations center on the construction of electrical control systems—built primarily on PLC systems and drive systems—for rolling lines and process lines in the steel and non-ferrous metals industries, along with new construction and renewal of power receiving and transforming facilities. For the oil and chemical industries, the segment covers a broad range from heavy electrical to light electrical (electrical instrumentation and monitoring/control) work. It also offers energy-saving and green solutions aimed at achieving carbon neutrality, and handles power receiving and transforming facility reinforcement work and storage battery replacement, mainly for the pharmaceutical and precision equipment fields.

Recent Overview

All fields progressed smoothly, achieving higher revenue and operating profit

In FY2026 (ending March 2026), the Plant Business posted revenue of ¥26,341 million (up 4.9% year on year) and operating profit of ¥5,014 million (up 17.9% year on year), achieving higher revenue and profit. In the steel and non-ferrous metals fields, energy-saving and labor-saving projects for carbon neutrality, such as new construction of power receiving/transforming facilities and control system renewals, progressed as planned. In the oil, chemical, and gas fields, renewal of electrical computer systems and expansion of the maintenance business contributed to results. In the industrial field, power receiving/transforming facility reinforcement work and storage battery replacement for pharmaceutical and precision equipment customers progressed smoothly. The operating margin improved from 16.9% in the previous period to 19.0%.

Key Products

Growth Drivers

• Continued maintenance and renewal investment in aging equipment in the steel and non-ferrous metals fields (power receiving/transforming facility renewal, control system renewal, etc.)
• Expanding demand related to carbon neutrality (energy-saving and labor-saving projects, storage battery replacement, renewable energy utilization)
• Energy transition-related investment in the oil, chemical, and gas fields (electrical computer system renewal, facility resilience enhancement)
• Expansion of power receiving/transforming facility reinforcement work for industrial customers, mainly in the pharmaceutical and precision equipment fields
• Accumulation of recurring revenue through continued expansion of the maintenance business
• Strengthened engineering capabilities and improved project profitability through cooperation with group companies

Risks

• Risk of project postponement or downsizing due to changes in capital investment plans or economic slowdown in the steel and petrochemical industries
• Risk that a sharp global economic slowdown caused by tariff policy could dampen customers' capital investment appetite
• Risk of timing shifts in revenue recognition due to delays in construction project progress (second-half weighting risk)
• Risk of deteriorating profitability due to rising construction costs from higher raw material and labor costs
• Risk that rising crude oil prices stemming from heightened geopolitical risk could squeeze the investment capacity of customers in the oil and chemical fields