SEIKA CORPORATION

Business Details

Handles sales and maintenance of commercial power generation equipment such as thermal, nuclear, hydroelectric, and biomass, sales and maintenance of private power generation equipment for key industries such as oil, chemicals, and steel, and sales and maintenance of power plant peripheral equipment such as environmental protection and security. The company is strengthening its business foundation in the energy infrastructure field by leveraging operational synergies with equity-method affiliates TVE Corporation and Nippon Fenwal Co., Ltd. From the current consolidated fiscal year, the method of calculating segment profit has been changed to "operating income + equity in earnings of affiliates."

Recent Overview

Delivery progress on power plant projects was smooth, but segment profit declined due to the lapse of prior-year negative goodwill

In FY2026 (ending March 2026), delivery of periodic repair work for thermal and nuclear power plants across western Japan and new construction work for thermal power plants in the Kyushu region progressed smoothly, resulting in sales revenue of ¥38,492 million, up 9.5% year on year. However, segment profit decreased 11.9% year on year to ¥4,011 million due to the lapse of the ¥955 million equivalent of negative goodwill recorded in the prior year in connection with the affiliate becoming an equity-method associate. Excluding the negative goodwill, profit on a substantive basis increased 11.5% year on year, maintaining an upward earnings trend. Segment assets increased significantly, driven by factors including the consolidation of Asahi Sunac Co., Ltd. as a subsidiary.

Key Products

Growth Drivers

• Continued occurrence of demand for periodic repair work at nuclear power plants and renewal of disaster prevention and security equipment
• Progress in delivery of major equipment renewal and power generation equipment construction work at thermal power plants
• Expansion of operational synergies with equity-method affiliates (TVE Corporation and Nippon Fenwal Co., Ltd.)
• Expansion of business opportunities driven by increased electricity demand associated with data center construction plans and similar projects
• Improvement in underlying earnings power due to becoming an agency for Mitsubishi Heavy Industries' nuclear power business

Risks

• Risk of fluctuation in quarterly performance due to concentration and unevenness in the timing of delivery of large-scale construction projects
• Downward pressure on profit comparisons due to the lapse of one-time gains such as the negative goodwill (¥955 million) recorded in the prior period (already materialized in the current period)
• Risk of economic downturn due to persistently elevated geopolitical risk and the impact of U.S. trade policy
• Risk of demand fluctuation due to changes in nuclear power plant operations and regulatory trends
• Risk that performance fluctuations at equity-method affiliates directly affect segment profit (operating income + equity in earnings of affiliates)