Kyushu Electric Power Company, Incorporated
9508・Prime Market・Electric Power & Gas
Business
Kyushu Electric Power Company, Incorporated, established in 1951, is the core electric power company of the Kyushu region, leading a group comprised of 82 subsidiaries and 55 affiliated companies. Centered on its domestic electric power business (Power Generation & Sales and Transmission & Distribution Business), the company operates overseas power generation and transmission & distribution businesses, energy services businesses including LNG, coal, and renewable energy, an ICT Services Business leveraging fiber-optic networks and data centers, and an Urban Development Business encompassing real estate development and public-private partnerships. Its main customers are household and industrial electricity consumers within the Kyushu region, and the company is positioned to capture increased demand from the establishment of new data centers and semiconductor-related industries. In October 2026, the company plans to establish a pure holding company, "Kyuden Holdings, Inc.," aiming to advance its group management structure.
Business Model
The majority of revenue comes from the domestic electricity business (Power Generation & Sales revenue of ¥1,842,917 million; Transmission & Distribution Business revenue of ¥720,599 million). While the Transmission & Distribution Business generates stable cash flow through wheeling revenue based on regulated tariffs, the Power Generation & Sales segment secures profit through fuel cost management and the utilization of low-cost power sources driven by high nuclear capacity utilization (utilization rate of 82.3%). The company is pursuing diversification of revenue sources through expanded investment in growth businesses (renewable energy, overseas, ICT, and urban development), aiming to improve capital efficiency centered on ROIC-based management.
Company Strengths
In the fiscal year under review, nuclear power generation output reached 28,621 million kWh, achieving a capacity utilization rate of 82.3%, realizing maximum utilization of low-cost power sources. Combined with the decline in fuel prices, supply-demand related costs decreased substantially, and ordinary income from Power Generation & Sales expanded 19.2% year on year to ¥136,420 million. The continued safe and stable operation of nuclear power underpins the core of the earnings structure.
Kyushu Electric Power Transmission and Distribution Company, Incorporated operates the General Transmission & Distribution Business within the Kyushu region, maintaining a stable supply base through continuous capital investment (¥146,583 million in the fiscal year under review) in transmission, transformer, and distribution facilities. As a regulated business, wheeling revenue accumulates in a stable structure, and the increase in regional electricity demand accompanying the establishment of new data centers and semiconductor-related industries represents an additional revenue opportunity.
In addition to the core businesses of power generation, sales, and transmission & distribution, the company holds the Other Energy Services Business (ordinary income of ¥36,921 million), the ICT Services Business (ordinary income of ¥10,615 million), the Overseas Business (ordinary income of ¥12,635 million), and the Urban Development Business (ordinary income of ¥5,166 million), reducing dependence on any single business. Total capital expenditure of ¥381,474 million is allocated across each segment, continuing the deployment of resources into growth businesses.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥2,356,833 million in FY2025 after rising from ¥2,221,300 million in FY2023, but declined to ¥2,247,214 million in FY2026 (down 4.7% year on year). While retail electricity sales volume fell 9.3% year on year to 68.6 billion kWh, reflecting the ongoing structural contraction in regional demand, external factors such as declining fuel prices (reducing supply-demand adjustment costs) pushed up profits. Operating profit rose to ¥224,853 million (up 12.7% year on year), ordinary profit to ¥207,059 million (up 6.4%), and profit attributable to owners of parent to ¥154,535 million (up 20.0%), achieving profit growth. The disappearance of extraordinary losses recorded in the prior period (impairment loss of ¥7,737 million and loss on affiliated companies' business of ¥6,117 million) also contributed to the improvement in net profit. The equity ratio improved to 19.9%, with the recovery in financial soundness continuing.
Growth Strategy
Achieving the 2035 Vision through six priority strategies: Carbon Minus, Solutions Evolution, Regional Co-creation, and DX
With safe operation of the Sendai and Genkai Nuclear Power Stations as the top priority, the Company aims to improve the capacity utilization rate. Against the FY2026 (ending March 2026) actual result of 82.3%, the FY2027 (ending March 2027) forecast anticipates an improvement to 84.7%. The revenue base of the Power Generation & Sales business will be strengthened through maximum utilization of low-cost power sources.
Wholesale sales volume expanded to 29.6 billion kWh in FY2026 (ending March 2026) (up 16.9% year on year) due to an increase in exchange transactions, among other factors. The FY2027 (ending March 2027) forecast anticipates a further increase to 30.4 billion kWh. The structural decline in retail sales volume will be offset by the expansion of wholesale sales, aiming to maintain total sales volume.
The Company is expanding LNG sales, LNG transport services, the Coal Sales Business, the Renewable Energy Business, and other operations. In FY2026 (ending March 2026), ordinary income for this segment continued to grow, reaching ¥36,921 million (up 11.2% year on year). Capital expenditure of ¥42,536 million (up 43.9% year on year) was implemented, actively strengthening the business foundation.
Leveraging its fiber-optic network and data center infrastructure, the Company is expanding outsourced information systems development, energy storage system-related products, the Fiber Broadband Business, and other operations. Net sales for FY2026 (ending March 2026) increased 10.3% year on year to ¥152,064 million (before elimination of inter-segment transactions). The Company is capturing increasing power and ICT demand from the data center and semiconductor-related industries.
In addition to generating returns through equity-method investments in overseas power generation and transmission & distribution businesses, the Company is promoting diversification of revenue sources, including foreign exchange gains, dividend income, and gains on sales of shares in affiliated companies. Ordinary income for FY2026 (ending March 2026) increased substantially to ¥12,635 million (up 42.6% year on year). Segment assets were maintained at ¥247,266 million, continuing to expand the investment foundation.
The balance of interest-bearing debt continued its gradual reduction, reaching ¥3,697.0 billion (down ¥21.7 billion year on year). Owing to the recording of profit attributable to owners of parent of ¥154,535 million and a significant improvement in accumulated adjustments related to retirement benefits, the equity ratio improved to 19.9% (from 17.3% in the previous period). ROE rose to 14.1%, up from 13.6% in the previous period.
Last updated: July 19, 2026