Worth reading
77Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
640
¥100 million (increase in consolidated net sales target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales+8.9%
基準 7,160Target7,800Hundreds of millions of yen
Operating profit+34.3%
基準 670Target900Hundreds of millions of yen
ROE+6.0pt
基準 10Target16％
ROIC+4.0pt
基準 10Target14％
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planConsolidated net sales of ¥716 billion and consolidated operating income of ¥67 billion (FY2026 targets) → Consolidated net sales of ¥742 billion and consolidated operating income of ¥83.1 billion (FY2025 actual results)（Net sales: +3.6%; operating income: +24.0% (calculated)）-0.0%Calculated from the two disclosed figures
Total investment planApproximately ¥125 billion in cumulative standalone investment for FY2024–FY2026
Investment amount by sectorField Business Investment / Amount Approximately ¥55 billion, Field Capital expenditure / Amount Approximately ¥50 billion, Field IT and digital-transformation investment / Amount Approximately ¥15 billion, Field Research and Development / Amount Approximately ¥5 billion
Statements about the use of capital
Payout ratio / DOE policyThe target payout ratio is approximately 40%. The Group will maintain this policy from FY2024 and target a payout ratio of approximately 40% in FY2026 as well.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Group conducted a ¥30 billion share buyback in FY2025. Under its cash allocation plan for FY2024–FY2026, ¥30 billion has been allocated to share buybacks as shareholder returns.
Self-assessment of PBR and share pricePBR remained in the 0.6–1.0x range through FY2024 and rose to approximately 3x in FY2025 as the share price increased. PBR was 2.99x in FY2025.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Achieve sustainable growth together with employees by creating an attractive company and making effective investments
02Further deepen existing businesses and contribute to the maintenance and development of social infrastructure and customer facilities
03Promote green innovation through collaboration between building facilities and social infrastructure and the creation of new businesses
04Raise productivity and efficiency by every available means, including promoting DX, reforming operational and production processes, and strengthening collaboration among divisions and Group companies
05Build firm relationships of trust with stakeholders through thorough compliance, ensuring safety and quality, and creating a better environment
06Deepen existing businesses through process reform and expand the scope of business
07Protect social infrastructure and contribute to the realization of a decarbonized, resilient society
08Develop new businesses focused on energy creation, energy storage and energy conservation
09Grow existing overseas locations and develop new markets to expand the overseas business
10Transform the company through DX-driven reform of operational and production processes
11Effective investment for sustainable growth
12Enhancing Corporate Value Through Management Conscious of the Cost of Capital and Share Price
Plan assumptionsConstruction of semiconductor plants and data centers, large-scale redevelopment projects, and demand for equipment upgrades toward carbon neutrality are expected., From FY2026 onward, prices are expected to rise at an annual rate of approximately 2% and wages at approximately 3%., The Group will monitor changes in the international situation, including developments in the Middle East, as well as trends in energy and materials prices.
Non-financial targetsIndicator Greenhouse gas emissions (Scope 1 and Scope 2) / Target value Down 32% from FY2020 / Timing Fiscal 2026, Indicator Major accidents / Target value ゼロ / Timing Fiscal 2026, Indicator Major equipment accidents / Target value ゼロ / Timing Fiscal 2026, Indicator Data-driven management / Target value Actual reduction / Timing 2030
Size of the Target MarketMore than ¥150 trillion in public- and private-sector GX investment. Source: Ministry of Economy, Trade and Industry, “GX2040 Vision: Revised Strategy for Promoting the Transition to a Decarbonized Growth-Oriented Economic Structure,” February 2025.
Risks identified by the company
Changes in the international situation, including developments in the Middle East
Trends in energy and materials prices
Securing the workforce and labor-saving of on-site operations in the construction industry
Cybersecurity
Actual results and other outcomes may differ from forecasts due to various factors
Reason for revision or withdrawal
In FY2025, amid firm private-sector construction investment, the productivity improvements and optimization of construction capabilities pursued to date contributed to an improved earnings structure. As a result, the Group achieved the FY2026 performance targets of its medium-term management plan ahead of schedule and set a new record for performance. In addition, private-sector construction investment is expected to remain firm, supported by construction of semiconductor plants and data centers, plans for large-scale redevelopment projects, and demand for equipment upgrades toward carbon neutrality.
| Item | Details |
|---|---|
| Plan name | KANDENKO Group Medium-Term Management Plan for FY2024–FY2026 |
| Plan period | FY2024-FY2026 |
| Progress against the plan | Partially revised |
| Sales Target | 7,160 Hundreds of millions of yen → 7,800 Hundreds of millions of yen（+8.9% (calculated)） |
| Operating profit target | 670 Hundreds of millions of yen → 900 Hundreds of millions of yen（+34.3% (calculated)） |
| ROE target | Over 10% → Approximately 16% |
| ROIC target | Over 10% → Approximately 14% |
| Payout ratio / DOE policy | The target payout ratio is approximately 40%. The Group will maintain this policy from FY2024 and target a payout ratio of approximately 40% in FY2026 as well. |
| Treasury share acquisition policy | The Group conducted a ¥30 billion share buyback in FY2025. Under its cash allocation plan for FY2024–FY2026, ¥30 billion has been allocated to share buybacks as shareholder returns. |
| Self-assessment of PBR and share price | PBR remained in the 0.6–1.0x range through FY2024 and rose to approximately 3x in FY2025 as the share price increased. PBR was 2.99x in FY2025. |
| Total investment plan | Approximately ¥125 billion in cumulative standalone investment for FY2024–FY2026 |
| Investment amount by sector | Field Business Investment / Amount Approximately ¥55 billion, Field Capital expenditure / Amount Approximately ¥50 billion, Field IT and digital-transformation investment / Amount Approximately ¥15 billion, Field Research and Development / Amount Approximately ¥5 billion |
| Non-financial targets | Indicator Greenhouse gas emissions (Scope 1 and Scope 2) / Target value Down 32% from FY2020 / Timing Fiscal 2026, Indicator Major accidents / Target value ゼロ / Timing Fiscal 2026, Indicator Major equipment accidents / Target value ゼロ / Timing Fiscal 2026, Indicator Data-driven management / Target value Actual reduction / Timing 2030 |
| Plan assumptions | Construction of semiconductor plants and data centers, large-scale redevelopment projects, and demand for equipment upgrades toward carbon neutrality are expected., From FY2026 onward, prices are expected to rise at an annual rate of approximately 2% and wages at approximately 3%., The Group will monitor changes in the international situation, including developments in the Middle East, as well as trends in energy and materials prices. |
| Key initiatives | Achieve sustainable growth together with employees by creating an attractive company and making effective investments, Further deepen existing businesses and contribute to the maintenance and development of social infrastructure and customer facilities, Promote green innovation through collaboration between building facilities and social infrastructure and the creation of new businesses, Raise productivity and efficiency by every available means, including promoting DX, reforming operational and production processes, and strengthening collaboration among divisions and Group companies, Build firm relationships of trust with stakeholders through thorough compliance, ensuring safety and quality, and creating a better environment, Deepen existing businesses through process reform and expand the scope of business, Protect social infrastructure and contribute to the realization of a decarbonized, resilient society, Develop new businesses focused on energy creation, energy storage and energy conservation, Grow existing overseas locations and develop new markets to expand the overseas business, Transform the company through DX-driven reform of operational and production processes, Effective investment for sustainable growth, Enhancing Corporate Value Through Management Conscious of the Cost of Capital and Share Price |
| Results under the previous plan | Consolidated net sales of ¥716 billion and consolidated operating income of ¥67 billion (FY2026 targets) → Consolidated net sales of ¥742 billion and consolidated operating income of ¥83.1 billion (FY2025 actual results)（Net sales: +3.6%; operating income: +24.0% (calculated)） |
| Reason for revision or withdrawal | In FY2025, amid firm private-sector construction investment, the productivity improvements and optimization of construction capabilities pursued to date contributed to an improved earnings structure. As a result, the Group achieved the FY2026 performance targets of its medium-term management plan ahead of schedule and set a new record for performance. In addition, private-sector construction investment is expected to remain firm, supported by construction of semiconductor plants and data centers, plans for large-scale redevelopment projects, and demand for equipment upgrades toward carbon neutrality. |
| Size of the Target Market | More than ¥150 trillion in public- and private-sector GX investment. Source: Ministry of Economy, Trade and Industry, “GX2040 Vision: Revised Strategy for Promoting the Transition to a Decarbonized Growth-Oriented Economic Structure,” February 2025. |
| Risks identified | Changes in the international situation, including developments in the Middle East, Trends in energy and materials prices, Securing the workforce and labor-saving of on-site operations in the construction industry, Cybersecurity, Actual results and other outcomes may differ from forecasts due to various factors |
| Publication date | 28 April 2026 |
Items this document does not state (5)
Operating profit margin targetNet income targetCost of capitalSegment targetDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Performance in FY2025 reached a record high as improvements in the earnings structure resulting from higher productivity and optimization of construction capabilities enabled the Group to achieve its FY2026 performance targets ahead of schedule. In addition, private-sector construction investment is expected to remain firm, supported by construction demand for semiconductor plants, data centers, redevelopment projects and facilities related to carbon neutrality.
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