KFC Ltd
3420・Standard Market・Metal Products
Business
KFC Co., Ltd. was established in 1965 as Japan's first company specializing in Post-installed Anchors, and marked its 60th anniversary in March 2025. The company consists of three segments: the Fastener Business (Post-installed Anchor sales and Seismic Retrofitting Work), the Civil Engineering Materials Business (sales of tunnel excavation materials), and the Construction Business (Tunnel Interior / Renewal Work and repair/reinforcement work for concrete structures). In addition to public sector clients such as expressway companies (NEXCO group companies), local governments, and railway operators, its main customer base also extends to private facility owners. Consolidated subsidiary RCI Co., Ltd. handles Seismic Retrofitting Work, while a local subsidiary in China manufactures tunnel support materials. Of the ¥25,548 million in net sales (FY2026, ending March 2026), completed construction contracts account for approximately 61%, with earnings generated through both product sales and construction work.
Business Model
The company's earnings are built on two pillars: product sales through technical proposal-based marketing of high-value-added products such as proprietary construction methods (Shear Reinforcement RMA Method, etc.), Special Rock Bolt, and waterproof sheets; and completed construction revenue from prime contracting orders for tunnel repair, seismic retrofitting, and similar work. The company has accumulated integrated know-how spanning development, manufacturing, and construction, and leverages specialized technology that is difficult for competitors to replicate to continuously secure orders in the public infrastructure maintenance and management market.
Company Strengths
Since its founding in 1965, the company has continuously developed Post-installed Anchor, NATM Rock Bolt, and tunnel repair methods, obtaining and renewing Construction Technology Review Certification for the Seismic Retrofitting Work (Shear Reinforcement RMA Method, etc.) and accumulating a cumulative construction length of over 90,000m for the ST Micropile Method, building up construction track record and intellectual property that competitors find difficult to replicate in a short period.
The company continues to receive large-scale, multi-year orders from major infrastructure operators such as NEXCO East Japan, Central Japan, and West Japan, JR East, and Osaka Metro. As of the end of FY2026 (ending March 2026), the order backlog stood at ¥8,004 million (including projects scheduled for completion in 2028 or later). Completed construction revenue from public-sector clients accounts for approximately 69% of the total, forming a stable order base.
The company invests ¥119,690 thousand in R&D expenses (FY2026, ending March 2026), centered on the Technical Department and Development Sales Department, developing new products and construction methods across its three businesses—Fastener, Civil Engineering Materials, and Construction. This system, capable of providing solutions in both product sales and construction, serves as a key differentiator for its technology-proposal-based sales approach.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥22,627 million in FY2023 (ended March 2023) and recovered to ¥26,073 million in FY2025 (ended March 2025), but declined again to ¥25,548 million in FY2026 (ending March 2026). Operating profit peaked at ¥2,489 million in FY2022 (ended March 2022) and has continued to decline, reaching ¥1,080 million in FY2026 (ending March 2026), the lowest level in five periods. As external factors, elevated construction material prices, energy costs, and rising labor costs are squeezing the cost structure. Product sales fell 7.8% year on year to ¥9,959 million, while completed construction revenue rose 2.1% year on year to ¥15,589 million, supporting results via the construction segment. Operating cash flow turned positive at ¥592 million, and cash and cash equivalents at period-end increased to ¥4,951 million.
Growth Strategy
Aiming for a V-shaped earnings recovery in the final year of the medium-term plan through three pillars: DX, human capital management, and growth investment
As the final year of the "K.F.C. Group Medium-Term Management Plan (FY2025 (ending March 2025)–FY2027 (ending March 2027))", the company aims to achieve consolidated net sales of ¥27,000 million, operating profit of ¥1,500 million, and ordinary profit of ¥1,600 million in FY2027 (ending March 2027). Results for FY2026 (ending March 2026) are lagging behind the plan, necessitating a substantial recovery in the final year.
Against the backdrop of progressing digital transformation in the construction industry, the company promotes internal DX to improve productivity and strengthen organizational capabilities. While continuing software investment (balance of ¥209 million as of FY2026, ending March 2026), it aims to improve its cost structure through greater efficiency in on-site construction management and order management.
In response to external environmental changes such as rising wages and labor shortages, the company is strengthening human capital management to secure and develop excellent engineers and skilled workers. At the same time, it is expanding growth investment in capital expenditure, R&D, and new businesses to improve capital efficiency and enhance corporate value over the medium to long term.
Last updated: July 19, 2026