Kanamoto Co.,Ltd.
9678・Prime Market・Services
Business
Kanamoto Co., Ltd. was founded in 1964 and is a corporate group originating in Hokkaido, primarily engaged in construction machinery rental and sales. The group consists of 32 companies in total, comprising 17 consolidated subsidiaries, 11 unconsolidated subsidiaries, and 3 affiliated companies, and conducts business not only across all of Japan but also overseas in Australia, Southeast Asia, China, and other regions. In its core Construction-related segment, in addition to construction machinery rental and sales, the company provides a diverse range of equipment including measuring instruments, temporary unit houses, specialty machinery, and safety products. In the Other segment, the company operates Steel-related, Information Equipment-related, and Welfare-related businesses, with construction contractors, general contractors, and public works-related businesses as its main customers. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company owns rental assets in-house and lends equipment to construction sites to earn recurring rental income. It suppresses depreciation costs by extending asset utilization periods and improving utilization rates, while enhancing profitability through appropriate pricing of rental fees. In FY2025 (ending October 2025)*, EBITDA+ reached ¥63,685 million, and operating cash flow stood at a high level of ¥47,415 million. Used assets are sold as used construction machinery to maintain asset efficiency. Capital expenditure is supported by a combination of installment sales, leasing, and long-term borrowings. *Note: The original text states "2025年10月期" (FY2025 ending October 2025); please verify fiscal year-end conventions as this may differ from the standard March fiscal year-end.
Company Strengths
Since its founding in 1964, the company has built over 60 years of operating track record, with sales offices across five regions nationwide: Hokkaido, Tohoku, Kanto-Koshinetsu, Western Japan, and Kyushu-Okinawa. In FY2025 (ending October 2025), Construction-related sales were ¥190,225 million, accounting for approximately 89% of total company sales, with growth confirmed broadly by region: Hokkaido up 5.2%, Kanto-Koshinetsu up 6.2%, and Western Japan up 8.0%.
In FY2025 (ending October 2025), cash flow from operating activities was ¥47,415 million (up 13.7% year on year), including depreciation of ¥34,397 million, reflecting stable cash-generating capacity. The equity ratio was 45.4% (up from 43.4% in the previous fiscal year) and ROE was 7.6% (up from 6.6% in the previous fiscal year), showing improvement in both financial soundness and capital efficiency.
In addition to Construction Machinery Rental, the company has a group of highly specialized subsidiaries, including measuring equipment (Soki Group), temporary unit housing (Kanatec), specialty ground improvement machinery (KG Floor Techno), tunnel-specific equipment (Toyu Engineering), and safety equipment (Assist), establishing a system capable of meeting construction site needs on a one-stop basis.
ENVALITH's Perspective
Performance Trend
Revenue over the past five periods expanded gradually from ¥189,416 million (FY2021) to ¥213,266 million (FY2025). Operating profit declined to ¥11,958 million in FY2023 before recovering and expanding to ¥14,569 million in FY2024 and ¥17,369 million in FY2025. In the first half of FY2026 (ending October 2026) (November 2025–April 2026), revenue was ¥107,952 million (up 2.7% year on year), operating profit was ¥10,430 million (up 22.1% year on year), and net income attributable to owners of the parent for the interim period was ¥6,952 million (up 34.4% year on year), indicating accelerating profit growth. External factors such as resilient public investment and a recovery in private-sector capital investment provided a tailwind, while the company's own initiative to optimize rental unit prices lifted the gross profit margin from 30.3% to 32.1%. The full-year forecast remains unchanged, with revenue of ¥221,000 million (up 3.6% year on year) and operating profit of ¥20,400 million (up 17.4% year on year).
Growth Strategy
Under "Progress 65," the company is expanding its revenue base through three pillars: growth strategy, DX enhancement, and sustainability initiatives
The company continues to optimize rental unit prices and strengthen profitability through improved utilization rates. It increased its share buyback program to ¥5.0 billion / 1,300,000 shares and extended the acquisition period to the end of November 2026, while also resolving to cancel 2,000,000 shares (scheduled for June 30, 2026). The policy aims to achieve both improved capital efficiency and expanded shareholder returns simultaneously.
The company is promoting sales efficiency and more sophisticated management systems through the use of BI tools, web-based ordering systems, and generative AI. By making effective asset investments and building management systems, it aims to improve utilization rates, and this has already resulted in a significant improvement in operating profit for the interim period (up 22.1% year on year).
Positioned as one of the three pillars of the medium-term management plan "Progress 65" (FY2025-FY2029). The company aims to expand its sustainable revenue base by addressing energy-saving and labor-saving needs in the construction industry and by providing environmentally friendly equipment.
Last updated: July 17, 2026