GECOSS CORPORATION
9991・Prime Market・Wholesale Trade
Business
Gecoss Corporation belongs to the JFE Group, centered on JFE Steel Corporation, and consists of two segments: the heavy temporary equipment business, which mainly rents and sells construction temporary materials (H-beams, steel sheet piles, etc.) and designs and constructs temporary works, and the construction machinery rental business handled by consolidated subsidiary Rental System Co., Ltd. In the heavy temporary equipment business, the company has expanded beyond its domestic locations into Singapore (FUCHI Pte. Ltd.) and Vietnam (GECOSS VIETNAM CO., LTD.), with overseas operations now gaining full momentum. Its main customers are general construction contractors and civil engineering companies, and it captures a wide range of construction demand, from large-scale redevelopment projects in the Tokyo metropolitan area to infrastructure renewal projects in regional areas. The company has also entered into a capital and business alliance with Mizuho Lease Co., Ltd., promoting diversification of its business domains.
Business Model
The core structure is an asset-utilization model that generates recurring revenue by owning and managing temporary construction materials in-house and renting them out to construction sites. Since used temporary materials are restored, repaired, and reprocessed at the company's own factories for re-rental, the recycling of steel materials underpins profitability. This is combined with design and consulting services (Jecos Design Co., Ltd.), temporary works construction (Otowa Koei Co., Ltd. and others), and transportation (Truck End Maintenance Service Co., Ltd.) to provide one-stop added value. In the construction machinery business, the company is strengthening its earnings base by reallocating its asset portfolio toward higher-profitability products.
Company Strengths
Belonging to the JFE Group as a wholly owned subsidiary of JFE Steel Corporation, the company has a supply base that enables stable procurement of a portion of its construction temporary materials from the JFE Group. Domestically, it operates a nationwide network of branches and factories, and overseas it holds local subsidiaries in Singapore and Vietnam. In August 2025, it made FUCHI Pte. Ltd. a consolidated subsidiary, achieving full-scale incorporation of overseas operations.
The company handles in-house restoration repair and processing of construction temporary materials at its nationwide factories in Tokyo, Nagoya, Sendai, Osaka, Fukuoka, and elsewhere, with repair results of ¥1,577 million (up 6.0% year on year) in FY2026 (ending March 2026). The circular model of repeatedly utilizing steel materials supports cost control and asset efficiency, and combined with profitability improvement activities, is raising the ordinary profit margin of the heavy temporary materials business. The Naganuma Plant has obtained H-grade steel frame fabrication factory certification, enabling it to handle high-value-added processing as well.
As a result of continuously promoting the acquisition of consideration commensurate with costs such as design fees (price optimization), ordinary profit in the heavy temporary materials business reached ¥8,604 million (up 29.8% year on year) in FY2026 (ending March 2026). Consolidated operating profit also increased significantly to ¥8,012 million (up 16.9% year on year), with the operating profit margin on sales improving in stages from 4.1% in FY2022 to 6.9% in FY2026.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥115,680 million (up 3.7% year on year), operating profit was ¥8,012 million (up 16.9%), and profit attributable to owners of parent was ¥5,853 million (up 28.8%), reflecting higher revenue and higher profit. The gross margin improved to 22.9% (from 20.9% in the prior period), evidencing the tangible results of profitability-improvement initiatives. As an external factor, robust construction demand centered on large-scale redevelopment projects in the Tokyo metropolitan area provided a tailwind. In non-operating income, a foreign exchange gain of ¥196 million associated with yen depreciation and compensation income of ¥94 million lifted ordinary profit, which came to ¥8,709 million (up 28.2%). In extraordinary items, a negative goodwill gain of ¥401 million arising from the consolidation of FUCHI and a step acquisition loss of ¥418 million were recorded. The operating profit trend over the past five periods (¥4,705 million → ¥4,503 million → ¥6,244 million → ¥6,851 million → ¥8,012 million) has shown consistent improvement since bottoming out in FY2023 (ended March 2023), suggesting that a qualitative transformation is taking hold.
Growth Strategy
Heading into the final year (FY2025–2027) of the medium-term management plan centered on improving profitability, expanding business scope, and generating overseas synergies
The company continues to pursue thorough recovery of consideration commensurate with design costs and other expenses, while expanding construction capacity. In FY2026 (ending March 2026), ordinary income in the heavy temporary structures business reached ¥8,604 million (+29.8% year on year), a substantial increase, reflecting the effects of these measures. The forecast for FY2027 (ending March 2027) is ¥8,200 million, a slight decrease, but an increase is expected on an operating income basis.
Singapore-based FUCHI Pte. Ltd., previously an equity-method affiliate, and its two subsidiaries were consolidated as subsidiaries in FY2026 (ending March 2026). The aim is to fully incorporate overseas sales and expand synergies in the Southeast Asian market. In connection with the consolidation, the company recorded a gain on negative goodwill of ¥401 million. Going forward, the policy is to further strengthen cooperation with FUCHI.
Sales in the steel structure fabrication and bridge segment in FY2026 (ending March 2026) were ¥11,565 million (down 5.2% year on year), a decline. The company plans to pursue nationwide expansion to strengthen its capture of infrastructure renewal demand, but the forecast for FY2027 (ending March 2027) is ¥11,500 million, remaining roughly flat. Advancing measures to expand business scale remains an ongoing challenge.
A capital and business alliance agreement was concluded among three companies—Gecoss Rental System Co., Ltd., Mizuho Leasing Company, Limited, and the Company—launching efforts to expand the business domain through strengthened collaboration. In FY2026 (ending March 2026), ordinary income in the construction machinery business was ¥391 million (+20.2% year on year), an increase. Continued growth is expected in FY2027 (ending March 2027), with a forecast of ¥450 million (+15.1% year on year).
The company is working to establish an operational structure for earth retention-related fields within the heavy temporary structures business, and to expand orders for civil engineering work, where stable demand is expected. In FY2026 (ending March 2026), temporary construction work sales reached ¥30,039 million (+17.6% year on year), a substantial increase, reflecting the results of expanded construction capacity. The forecast for FY2027 (ending March 2027) is ¥27,500 million, a slight decrease.
Last updated: July 19, 2026