Konoike Transport Co.,Ltd.
9025・Prime Market・Land Transportation
Business
Konoike Transport is a comprehensive logistics and outsourcing company founded in 1880. Its core business, the Integrated Solutions Business (net sales of ¥231,985 million), covers everything from in-plant production process contracting at customer factories to distribution and engineering. This is complemented by two other segments: the Domestic Logistics Business (¥56,513 million), centered on refrigerated and frozen warehousing, and the International Logistics Business (¥67,028 million), covering ocean and air freight. Customers span a wide range of industries including steel, chemicals, food and beverage, aviation, and healthcare, with the company having built long-term business relationships with major manufacturers and distributors, led by Nippon Steel. With a group structure of 72 companies including 56 consolidated subsidiaries, the company also maintains an overseas business base in regions such as India, North and Central America, and Southeast Asia.
Business Model
By deploying personnel, equipment, and operational know-how into customer manufacturing and logistics sites, the company generates recurring revenue through comprehensive outsourcing of process operations, warehouse management, transport, and engineering. It provides an integrated range of services spanning simple transport through to high-value-added specialized processes (such as medical device sterilization and plant equipment maintenance), contributing to improved production efficiency and cost reduction for customers. Profit margins have improved through continued collection of appropriate unit prices and operational efficiency gains, with the operating margin reaching 6.4% in FY2026 (ending March 2026).
Company Strengths
In the Integrated Solutions Business, the company serves a wide range of industries including steel, non-ferrous metals, chemicals, food, beverages, aviation, and medical care, diversifying its dependence on any specific industry. Sales to Nippon Steel, its largest customer, were kept to around 10%, at ¥37,641 million (10.6% of sales), and this cross-industry customer base supports earnings stability.
The company possesses operational know-how accumulated over more than 140 years since its founding in 1880 at steel, food, port, and other work sites. It has built up a long track record in each field, including the start of in-plant cargo handling at steel mills in 1900, entry into the food sector in 1951, and the start of airport operations in 1991, forming site-embedded expertise and customer trust relationships that competitors find difficult to replicate in a short period.
The company consolidated FSNL Private Ltd., a steel slag processing company in India, in January 2025, and Pine Valley Packaging Group in Canada in July 2024, expanding its overseas business foundation. The effects of these new consolidations contributed to a 6.7% increase in Integrated Solutions Business sales and a 14.8% increase in segment profit in FY2026 (ending March 2026), and a track record of overseas growth through M&A is accumulating.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved net sales of ¥355,555 million (up 3.1% year on year), operating profit of ¥22,785 million (up 6.5%), and profit attributable to owners of parent of ¥14,268 million (up 1.5%), marking its fifth consecutive year of increased revenue and profit. The consolidation effect of Indian and Canadian subsidiaries and the resumption of international passenger flights related to airport operations drove revenue growth, while a reduction in flights on China routes due to deteriorating Japan-China relations (an external factor) weighed on air cargo handling volume. Operating cash flow increased year on year to ¥24,862 million. For FY2027 (ending March 2027), the company forecasts net sales of ¥361,000 million and operating profit of ¥21,000 million, representing a projected profit decline, indicating that the company has entered a phase of decelerating growth.
Growth Strategy
Under the Medium-Term Management Plan 2027, the company is advancing overseas expansion centered on India and North/Central America while strengthening its domestic integrated services business
Building a stable earnings base through volume expansion, efficiency improvements, and PMI progress at FSNL Private Ltd. (India). Consolidation of the Canadian subsidiary has also been completed, strengthening the business foundation in North/Central America. Despite the impact of U.S. import tariffs, the company is expanding its earnings contribution while responding to high-level demand.
Through the launch of new sites and increased volume in the Living Industry, Food Products, and airport-related businesses, along with ongoing efforts to secure appropriate pricing, segment profit for FY2026 (ending March 2026) reached ¥23,864 million (up 14.8% year on year). The strategy to accelerate domestic business growth under the medium-term plan is progressing steadily.
Positioning "people" as the source of value creation, the company is promoting active investment in human resources and strategic talent development. It is working to strengthen its management foundation through technological innovation, ICT utilization, and enhanced internal controls. In parallel, it is also advancing the development of internal systems in anticipation of future IFRS adoption.
The annual dividend for FY2026 (ending March 2026) was ¥110 per share (increased from ¥96 in the previous period), with a payout ratio of 40.9%. For FY2027 (ending March 2027), a dividend of ¥110 per share is planned (payout ratio of 41.7%). The company has clearly stated its policy of maintaining dividend levels even under a forecast of declining profit, aiming to achieve continuous and stable shareholder returns.
Last updated: July 19, 2026