KYOWA ENGINEERING CONSULTANTS CO., Ltd.
9647・Standard Market・Services
Business
Kyowa Consultants Co., Ltd. is a construction consultant firm established in 1961, listed on the Standard Market of the Tokyo Stock Exchange. Its core business is survey, design, and construction management related to civil engineering and architecture both domestically and overseas, with government agencies and public institutions such as the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Defense, and expressway companies as its main clients. Its consolidated subsidiary KDC Corporation handles information processing and staffing businesses for government agencies, while KEC Shoji Co., Ltd. is responsible for the Real Estate Leasing and Management Business. The company operates a nationwide sales network of more than 30 locations, expanding its business while capturing demand related to disaster prevention and mitigation, national resilience, and defense facility development.
Business Model
The Construction Consultant Business, accounting for approximately 83% of net sales, generates revenue by receiving outsourced work from government agencies and providing specialized technical services in survey, design, and construction management. The structure is such that technical proposal-based sales activities secure both the quality and quantity of orders received, while productivity improvements and reductions in outsourcing costs and SG&A expenses raise profit margins. The Information Processing Business (approximately 17%) contributes complementary revenue through system development and staffing for government agencies. The Real Estate Leasing and Management Business functions as a high-margin, stable revenue source, primarily driven by demand within the group.
Company Strengths
Sales to the Ministry of Defense in FY2025 (ending November 2025) amounted to ¥1,497 million (versus ¥1,100 million in the previous fiscal year), a 36.2% increase year on year, reaching 17.7% of total sales. Against a backdrop of expanding demand related to defense facility development, the company has secured large-scale multi-year contracts, establishing a stable revenue source expected to contribute to sales over the medium term.
Sales grew from ¥7,330 million in FY2021 (ending November 2021) to ¥8,442 million in FY2025 (ending November 2025), while operating profit rose from ¥479 million to ¥917 million, increasing for five consecutive fiscal periods. The operating margin in FY2025 improved to 10.9% (versus 9.5% in the previous fiscal year), with efforts to improve productivity and reduce outsourcing costs and selling, general and administrative expenses contributing to the improved earnings structure.
The order backlog at the end of FY2025 (ending November 2025) stood at ¥7,923 million (up 1.3% year on year), with the Construction Consultant Business alone maintaining ¥7,343 million (up 2.0% year on year). The company holds an order backlog equivalent to approximately 94% of sales, securing a stable order backlog that supports sales in the following fiscal period and beyond.
ENVALITH's Perspective
Performance Trend
Revenue steadily expanded over the past five fiscal years, rising from ¥7,330 million in FY2021 to ¥8,442 million in FY2025, while operating profit also improved by nearly double, from ¥479 million to ¥917 million. In the interim period of FY2026 (ending November 2026), revenue declined to ¥4,710 million (down 1.9% year on year), but through reductions in cost of sales and SG&A expenses, the company achieved profit growth with operating profit of ¥728 million (up 11.1% year on year), ordinary profit of ¥724 million (up 11.2% year on year), and interim net profit attributable to owners of the parent of ¥477 million (up 9.0% year on year). The full-year forecast remains unchanged at revenue of ¥8,600 million and operating profit of ¥1,030 million. As an external factor, government demand related to defense and national resilience (land infrastructure strengthening) continues to underpin business performance.
Growth Strategy
Pursuing sustainable growth centered on four key challenges: securing order volume, improving profitability, strengthening technical capabilities, and developing human resources
By capturing demand related to disaster prevention/mitigation, national resilience, and base development based on the defense capability development plan, and strengthening technical proposal-based sales, the company aims to enhance competitiveness in both the quality and quantity of orders received. The operating margin for the interim period improved to 19.5%, up 1.7 percentage points year on year, indicating that profitability improvement measures are progressing steadily.
The effects of various order-taking measures implemented since the beginning of the current fiscal year are steadily emerging, with interim orders received reaching ¥1,229 million, up 7.9% year on year. This business, which had recorded an operating loss of ¥8 million in the same period of the previous year, turned profitable with an operating profit of ¥6 million, indicating ongoing improvement in the earnings structure.
Even as net sales declined 1.9% year on year, cost of sales was reduced by 4.2% and SG&A expenses by 2.3%, resulting in an 11.1% increase in operating profit. Thorough cost management has established an earnings structure that achieves profit growth even during a sales decline phase, and continued efforts are also contributing to improved financial soundness.
Short-term borrowings were reduced by ¥400 million to ¥600 million, and the equity ratio improved to 55.7%. Cash and deposits remain ample at ¥5,048 million, and operating cash flow is maintained at a high level of ¥1,200 million. The company continues its annual dividend of ¥30, ensuring stability in shareholder returns.
Last updated: July 17, 2026