The Kansai Electric Power Company, Incorporated
9503・Prime Market・Electric Power & Gas
The Kansai Electric Power Company, Incorporated
9503・Prime Market・Electric Power & Gas
Business
The Kansai Electric Power Group, centered on the largest electric utility in the Kansai region established in 1951, operates across four segments: the Energy Business (electricity, gas, and Utility Services), the Transmission & Distribution Business (regulated business), the Information & Communications Business (eo Hikari, mineo, and corporate IT), and the Life & Business Solutions Business (real estate, call centers, and medical services). The group comprises 216 companies including 109 consolidated subsidiaries, and while its primary customer base consists of household and corporate customers in the Kansai area, it is expanding operations nationwide and overseas. Leveraging the strength of its 7 operating nuclear reactors to maintain low-cost, low-carbon power sources, the group is promoting the integrated provision of energy and solutions under its "Energy 3.0" strategy.
Business Model
The Transmission & Distribution Business provides a stable earnings base as regulated revenue under the wheeling fee system. In the Energy Business, the company combines its own power sources—nuclear, hydro, renewable energy, etc.—with power purchased from other companies to generate revenue through retail and wholesale sales. The Information & Communications Business generates revenue through monthly subscription-based services such as FTTH, MVNO, and corporate IT, while the real estate business consists of rental income and revenue from residential sales. With each segment conducting internal transactions with one another, the group as a whole targets EBITDA of ¥800 billion or more.
Company Strengths
In FY2025, all seven nuclear units continued operation, achieving a utilization rate of 84.1%. Nuclear power generation volume reached 46,009 million kWh. This low-fuel-cost, low-carbon power source base serves as a key differentiator from competitors and is the primary earnings driver behind the Energy Business segment profit of ¥377,368 million.
eo Hikari was ranked No. 1 in the Kinki region customer satisfaction survey for 19 consecutive years, with approximately 1.70 million customers. mineo has approximately 1.41 million subscribers, and Kanden Gas contracts reached approximately 1.63 million. Retail electricity sales volume was maintained at 116,273 million kWh, with multiple customer touchpoints secured through diversified services spanning electricity, gas, telecommunications, and real estate.
FY2025 results significantly exceeded all financial targets: ordinary income of ¥518.5 billion (against a target of ¥360.0 billion or more), equity ratio of 35.1% (against a target of 28% or more), ROIC of 5.7% (against a target of 4.3% or more), and ROA of 5.8% (against a target of 4.4% or more). Net assets stood at ¥3,502,744 million, with the equity ratio up 3.3 percentage points from the end of the previous fiscal year.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), revenue was ¥4,056,638 million (down 6.5% year on year), operating profit was ¥437,556 million (down 6.7%), and profit attributable to owners of parent was ¥380,051 million (down 9.6%), representing a decline in both revenue and profit across all metrics. This reflects a structure in which the decrease in electricity sales revenue (electricity volume sold to other companies fell to 88.6% of the previous year's level) was offset by decreases in electricity purchase costs from other companies and thermal fuel costs. Profit was also pushed down by the absence of the gain on sale of shares of affiliated companies (extraordinary income of ¥61,412 million) recorded in the previous period. On the other hand, the equity ratio improved to 35.1% (from 31.8% at the end of the previous fiscal year), and interest-bearing debt was reduced by ¥205,175 million. Management assesses that the financial targets under the medium-term management plan have been largely achieved.
Growth Strategy
Aiming for sustainable corporate value growth through maximum utilization of nuclear power, expansion of renewable energy, and the Energy 3.0 strategy
While maintaining high operating rates at the existing 7 nuclear units on the premise of ensuring safety, the company is advancing surveys and technology development toward the installation of follow-on units. The FY2025 (ending March 2025) nuclear utilization rate of 84.1% was at a high level, but the FY2026 (ending March 2026) forecast is expected to decline to around 70%, making the management of periodic inspection schedules a key factor for earnings.
The company is promoting renewable energy development at suitable sites nationwide, not limited to the Kansai area. A portion of the capital expenditure of ¥580,678 million (up 13.2% year on year) is being allocated to renewable energy development, and the expansion of construction in progress and other suspense accounts (construction suspense account and retirement suspense account of ¥394,135 million) demonstrates this progress.
The company is promoting "Energy 3.0," which combines the integrated provision of electricity, gas, and solutions with efforts to challenge new business domains. Retail electricity sales volume remained at a slight increase of 116,273 million kWh (up 0.7% year on year), with the electric power segment (for corporate customers) growing particularly strongly at +1.5%.
A new policy has been introduced from FY2026 (ending March 2026) to maintain or increase dividends with a consolidated dividend payout ratio target of 25-35%. The company plans to increase the dividend from ¥75 per share (payout ratio of 22.0%) in FY2025 (ending March 2025) to a forecast of ¥80 per share (payout ratio of 28.7%) in FY2026 (ending March 2026), aiming to balance financial soundness with shareholder returns.
The company resolved to tender its shares in the self-tender offer by equity-method affiliate Kinden Corporation (planned sale of 33,500,000 shares, tender price of ¥6,677 per share). Upon completion of the sale, the company's ownership ratio will decline from 37.13% to 24.33%, and a gain on sale of shares of affiliated companies (extraordinary income) of approximately ¥105,000 million is expected to be recorded in the following fiscal year. This action implements the optimization of capital relationships aimed at improving capital efficiency.
Last updated: July 19, 2026