SPACE CO.,LTD.
9622・Prime Market・Services
Business
Space Co., Ltd. traces its origins to its founding in 1948 (as its predecessor, Kato Glass Co., Ltd.) and is a company specializing in the Display Business, handling everything from planning, consulting, design, and supervision to construction for a wide range of commercial facilities including shopping centers, department stores, specialty stores, restaurants, hotels, and medical/welfare facilities. In addition to multiple domestic locations, the company has consolidated subsidiaries in Hong Kong, Shanghai, and Vietnam, enabling it to gather overseas information and handle local construction work. It is listed on the Prime Market of the Tokyo Stock Exchange. Net sales for FY2025 (ending December 2025) reached ¥71,511 million, a new record high.
Business Model
The company receives orders for new construction and renovation of commercial facilities from customers (retail, food service, hotel, healthcare, and other business operators), earning revenue by providing a consistent service from planning through construction completion. The majority of sales (91.9% in FY2025 (ending December 2025)) comes from Interior & Exterior Construction. Construction work utilizes outsourcing to partner companies, creating a structure where improvement in the outsourcing cost ratio directly leads to expansion of gross profit. Funding is based primarily on the company's own capital, and shareholder returns are implemented with a dividend payout ratio of 50% or more while maintaining financial soundness.
Company Strengths
Revenue increased 68.6% over five fiscal periods, from ¥42,408 million in FY2021 (ended December 2021) to ¥71,511 million in FY2025 (ended December 2025). Operating profit also more than doubled over the same period, from ¥2,228 million to ¥4,831 million, with FY2025 (ended December 2025) marking record highs in both revenue and profit at every stage.
The company has built an integrated system that completes Consulting, Planning, Design & Interior Supervision and construction all within a single group. Through coordination between a customer-focused sales division and specialized departments, it has established a system capable of flexibly securing large-scale projects.
In FY2025 (ended December 2025), orders received totaled ¥71,824 million (108.9% year on year), and the order backlog stood at ¥12,062 million (102.7% year on year). Orders for Interior & Exterior Construction totaled ¥65,357 million, accounting for 91.0% of the total, maintaining a stable order pipeline.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥42,408 million in FY2021 to ¥71,511 million in FY2025, and operating profit also reached a record high of ¥4,831 million in FY2025. Cumulative results for Q1 FY2026 were solid, with revenue of ¥18,242 million (up 2.1% year on year) and operating profit of ¥1,856 million (up 8.8% year on year). However, the full-year forecast for FY2026 (ending March 2026) points to a significant slowdown in revenue growth, with revenue of ¥72,000 million (up 0.7% year on year), operating profit of ¥5,040 million (up 4.3% year on year), and net income of ¥3,300 million (down 12.5% year on year). Regarding the external environment, while inbound demand, urban redevelopment, and corporate capital investment appetite remain firm, uncertainty over factors such as U.S. trade policy poses a risk to the outlook. The deconsolidation of a subsidiary (MSC Co., Ltd.) is also drawing attention as a structural change.
Growth Strategy
Under the medium-term plan "Expansion Growth," the company aims for net sales of ¥80,000 million, an operating margin of 8%, and ROE of 12% in FY2028 (ending December 2028)
The company continues to secure large-scale projects in the Services (medical/welfare, hotel), various specialty stores, and restaurant sectors, while maintaining cost competitiveness through improved outsourcing cost ratios. In Q1 FY2026, the Services segment grew 13.3% year-on-year, acting as a growth driver, and initiatives are progressing steadily.
Beyond the existing display construction business, the medium-term plan explicitly states a challenge to pursue new areas of value provision as a partner co-creating business with customers. Specific details of new businesses have not been disclosed in the financial results report, but "partner for co-creating commerce" is set forth as a qualitative goal.
Starting from FY2026 (ending December 2026), the company will begin reviewing and strengthening its organizational structure with the aim of evolving its core office functions. It will build a labor environment and operational efficiency framework utilizing digital technology, promoting productivity improvement and a foundation for diverse talent to thrive. "Realization of comprehensive career-track roles for all employees" is set as a qualitative goal.
The medium-term management plan explicitly sets a dividend payout ratio of 50% or more as a quantitative target. The forecasted annual dividend for FY2026 (ending December 2026) is ¥72 (down from ¥78 in the previous period, which included a special dividend of ¥8). Against the full-year EPS forecast of ¥134.57, the dividend payout ratio would be approximately 53.5%, indicating the target level is expected to be achieved.
Last updated: July 17, 2026