SWCC Corporation

Business Details

This segment manufactures and sells wires, power cables, power equipment, aluminum wire, equipment materials, seismic isolation devices, and damping/vibration-proof products, and also performs engineering design and contracting. Main customers are electric power companies and construction-related companies, with primary demand sources being substation aging countermeasures, transmission/distribution network reinforcement, and renewable energy-related investment. SWCC Corporation, SFCC Corporation, Showa Kiki Kogyo Co., Ltd. and others handle manufacturing and sales, while SDS Corporation handles sales. The segment drives revenue expansion centered on increased production investment in the strategic product SICONEX®, and is positioned as the growth-driving business for the entire group.

Recent Overview

Both net sales and operating profit increased due to continued expansion of power infrastructure investment and the effect of increased SICONEX® production

Full-year net sales for FY2026 (ending March 2026) were ¥131,944 million (up 2.4% year on year), and operating profit was ¥20,432 million (up 21.9% year on year). As sustained investment in substation renewal and transmission/distribution network resilience continued, revenue expanded and margins improved due to the increase in construction projects and the effect of increased production investment in the strategic product SICONEX®. Domestic construction-related demand remained challenging in the first half due to labor shortages and rising material prices, but showed a recovery trend in the second half. Rising copper prices combined with appropriate price revisions also contributed to improved revenue.

Key Products

Growth Drivers

• Continued expansion of investment by electric power companies toward substation aging countermeasures and transmission/distribution network reinforcement
• Order expansion and margin improvement from the effect of increased production investment in SICONEX®
• Solid trends in renewable energy shift and demand from AI data center and semiconductor plant construction
• Expanded adoption of proprietary products contributing to shortened construction periods for power supply projects supporting rapid AI data center market expansion
• Structural profitability improvement through electric power companies' response to revenue caps and annual leveling of construction projects
• Cost reduction effects from sales price revisions, DX promotion, and various productivity improvement measures

Risks

• Risk of demand adjustment due to labor shortages and rising material prices for domestic construction-related demand
• Risk of cost increases due to rising prices of copper, a key raw material (price pass-through to some existing contracts is partially difficult)
• Risk of construction delays and lost order opportunities due to shortage of construction workers
• Risk of business environment deterioration due to trends in economic policies of various countries, including US tariff policy, and instability in the international situation
• Risk of schedule and completion delays on large-scale projects due to work-style reforms at construction sites
• Risk of supply chain disruption due to heightened geopolitical risk amid escalating tensions in the Middle East