Chiyoda Corporation
6366・Standard Market・Construction
Business
Chiyoda Corporation is a comprehensive engineering corporate group founded in 1948, whose core business is operating as an EPC contractor that undertakes and executes Engineering, Procurement, and Construction for various industrial plants on an integrated basis. With a track record of over 300 projects across roughly 60 countries and regions worldwide, the company has centered its business on the LNG, oil, and petrochemical fields while expanding into decarbonization (hydrogen, CCS, SAF), metals and advanced materials, and life sciences (pharmaceuticals and biotechnology). Major customers include international energy majors such as QatarEnergy and Golden Pass LNG, as well as domestic manufacturers and pharmaceutical companies. The group is composed of 13 consolidated subsidiaries and 3 equity-method affiliates.
Business Model
Under an order-based (build-to-order) approach, the company undertakes individual projects from customers and generates gross profit on completed construction by integrally performing design, equipment procurement, on-site construction, and commissioning. In the fiscal year under review, the gross profit margin on completed construction contracts reached 20.4% (versus 9.3% in the previous fiscal year). The SG&A expense ratio has been kept at a low 3.7%, resulting in a structure where improvements in construction profitability are directly reflected in operating profit.
Company Strengths
The company has a track record of executing over 300 projects in approximately 60 countries and regions worldwide, primarily in the LNG and petrochemical fields. Its ability to execute ultra-large-scale projects such as the Qatar NFE project (four trains of 8 million tons per annum each) and the GPX project (achievement of 1st LNG production at Train 1) constitutes a unique competitive advantage that competitors cannot easily replicate in the short term.
The company continues to develop proprietary technologies—including SPERA Hydrogen technology, CCS solid absorbent materials, and ammonia production processes—at its research facilities (Koyasu Office Research Park) with a history of over 70 years. It possesses technology integration capabilities to transfer scale-up know-how developed in petrochemicals to life sciences, applying it to areas such as iPS cell culture, plant biofoundry, and continuous manufacturing technology for pharmaceuticals.
Since the third-party allotment of shares in 2008, the company has maintained a capital and business alliance with Mitsubishi Corporation. During the management crisis in 2019, it achieved a turnaround through loan agreements with Mitsubishi Corporation Finance Services and MUFG Bank. It currently secures a total borrowing facility of ¥10 billion, ensuring the financial liquidity necessary to execute large-scale EPC projects.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥505,981 million in FY2024, declined to ¥456,969 million in FY2025, then recovered to ¥493,942 million in FY2026. Operating profit expanded sharply from ¥-15,006 million in FY2024 to ¥24,421 million in FY2025 and ¥82,102 million in FY2026, with the operating margin reaching 16.6%. The main driver was a profitability review following the conclusion of the revised GPX EPC contract and the reversal of provisions for construction contract losses (¥-22,513 million). As an external factor, an improvement in foreign exchange losses from ¥2,580 million in the prior period to ¥1,776 million also boosted ordinary profit (¥92,474 million). Meanwhile, the company's forecast for FY2027 (ending March 2027) anticipates a sharp slowdown, with revenue of ¥340,000 million and operating profit of ¥10,000 million, as the profit trough following the completion of large-scale projects poses a challenge.
Growth Strategy
Through self-transformation toward earnings stabilization and diversification, the company aims for net income of ¥30 billion and a Non-EPC ratio of 20% ten years from now
For the GPX project, construction and commissioning of Train1 were completed in March 2026, achieving 1st LNG production. Construction and commissioning of Train2 and Train3 continue toward completion. For NFE in Qatar, steady progress is expected to continue into the next consolidated fiscal year. Following a temporary suspension due to the escalation of tensions in the Middle East, construction work resumed in mid-March 2026.
Under an order-taking policy thoroughly focused on risk mitigation and diversification, the company secured a medium-scale EPC order in the oil and petrochemical sector in the Middle East during FY2025 (orders received of ¥154,279 million, up 304.0% year on year). The company continues to build a well-diversified portfolio and to advance the review of risk-sharing arrangements with customers.
The company is responding to robust demand in the life science and decarbonization fields. It received an order for EPC work on a large-scale pilot facility for solid electrolytes for all-solid-state batteries for Idemitsu Kosan and concluded a strategic partnership. Domestic completed construction revenue expanded sharply to ¥142,932 million (up 40.4% year on year).
The company is advancing large-scale water electrolysis system joint development with Toyota Motor Corporation (hydrogen production scheduled to begin around May 2026), a plant biofoundry business (operations commenced June 2025), and investments in Heirloom and Ammobia, among others. The company targets net income of ¥1.0 billion from Non-EPC businesses (FY2027).
Targeting full redemption of all shares by the end of June 2028, the company plans to acquire and retire 110,400,000 shares (63.1% of shares issued) for approximately ¥55,112 million on June 30, 2026. Following completion of the redemption, the company aims to transition from the Standard Market to the Prime Market and to resume dividend payments to common shareholders.
Last updated: July 19, 2026