# KANDENKO CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第112期(2025/04/01－2026/03/31) (S100YDOZ)
> Page: https://vizora.meequs.com/en/company/kandenko
> Retrieved: 2026-09-30T19:09:17.513Z

## Company

Kandenko, founded in 1944, is a company in Plant Engineering & Building Services listed on TSE Prime. It has 10,850 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | KANDENKO CO.,LTD. |
| Ticker | 1942 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1942.T) |
| Listing | TSE Prime |
| Head office | 東京都港区芝浦4丁目8番33号 |
| Representative (per filing) | 代表取締役社長 社長執行役員 田母神 博文 |
| Founded | Sep 1944 |
| Share capital | ¥10.3B |
| Employees (consolidated) | 10,850 |
| Average salary (parent only) | ¥10.1M |
| Fiscal year end | March |
| Website | www.kandenko.co.jp (https://www.kandenko.co.jp/) |
| Corporate number | 9010401006818 |
| EDINET | E00074 |
| Industries (Vizora) | Plant Engineering & Building Services |

> Profile source: annual securities report (S100YDOZ, filed 2026-06-22). As of filing

## Five-axis industry profile

Primary industry: Plant Engineering & Building Services (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 49.3 | 72 |
| Profitability | 67.8 | 76 |
| Cash conversion | 72.3 | 74 |
| Efficiency | 78.3 | 76 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 99% of Kandenko's sales come from ENGINEERING, with Other making up much of the rest.
- Out of every ¥100 of sales, about ¥11 is left as operating profit.
- Revenue changed +10.4% from the prior year, operating profit +42.5%.

## Company structure

- Segment revenue mix: ENGINEERING 98.6%、Other 1.4%
- Revenue → net income: ¥742022000000 → ¥65911000000
- Net income → operating cash flow: ¥65911000000 → ¥89451000000（difference ¥23540000000）
- Main uses of operating cash flow: CapEx ¥15781000000 / dividends ¥20644000000 / buybacks ¥30001000000
- Change in cash: ¥19315000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥742B |  |
| Operating income | ¥83.1B | Margin 11.2% |
| Net income | ¥63.5B | Margin 8.6% |
| Free cash flow | ¥73.7B |  |
| Largest business | ENGINEERING | of segment revenue 98.6% |
| Employees (consolidated) | 10,850 |  |
| EPS | ¥277.43 |  |
| Book value per share | ¥1663.41 |  |
| Equity ratio | 61.4% |  |
| Shares outstanding | 205,288,338 |  |
| Treasury shares | 6,274,400 |  |
| Shareholders | 27,788 |  |
| Average salary (parent only) | ¥10.1M | Filing company only |
| Cash ratio | 12.1% | Cash ÷ revenue 10.4% |
| Vs. industry median margin | +2.1 pp | Plant Engineering & Building Services |
| ROE | 18.2% | Derived from disclosed figures |
| ROA | 10.3% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 1.5× dividends
- FY2026, one segment accounts for 97% of positive segment profit
- FY2026, parent-company salary changed +36% over five years

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥556045000000 | ¥742022000000 | +33.4% |
| Operating income | ¥30041000000 | ¥83140000000 | +176.8% |
| Operating margin | 5.4% | 11.2% | +5.8 pp |
| Employees | 10,154 people | 10,850 people | +6.9% |
| Cash and equivalents | ¥57187000000 | ¥77151000000 | +34.9% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 設備工事業 → 設備工事業 | 98.0% |
| その他 → その他 | 1.4% |
| その他 → 事業再編・廃止 | 0.6% |
| 新設・再編 → 設備工事業 | 0.6% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 742,022 | 100.0% | S100YDOZ |
| Cost of revenue | 621,311 | 83.7% | S100YDOZ |
| Gross profit | 120,711 | 16.3% | S100YDOZ |
| SG&A | 37,570 | 5.1% | S100YDOZ |
| Operating income | 83,140 | 11.2% | S100YDOZ |
| Ordinary income | 84,981 | 11.5% | S100YDOZ |
| Pretax income | 91,731 | 12.4% | S100YDOZ |
| Income tax | 25,819 | 3.5% | S100YDOZ |
| Net income | 65,911 | 8.9% | S100YDOZ |
| Net income attributable to owners | 63,516 | 8.6% | S100YDOZ |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 84 |
| SG&A | 5 |
| Operating income | 11 |
| (Ref.) Net income | 9 |

### Margin funnel

Gross margin 16.3% → Operating margin 11.2% → Net margin 8.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +10.4%; Core profit growth: +42.5%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.08×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 671,888 | 742,022 | 70,134 | +10.4% |
| Gross profit | 92,921 | 120,711 | 27,790 | +29.9% |
| Operating income | 58,326 | 83,140 | 24,814 | +42.5% |
| Net income attributable to owners | 42,380 | 63,516 | 21,136 | +49.9% |
| Operating cash flow | 18,263 | 89,451 | 71,188 | +389.8% |
| Free cash flow | 3,375 | 73,670 | 70,295 | +2082.8% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 616,143 | 34,693 | 5.6% | 22,515 | 29,155 | 18,585 | S100LJ2W |
| FY ending Mar 2021 | 556,045 | 30,041 | 5.4% | 20,147 | 12,873 | 7,115 | S100OAUS |
| FY ending Mar 2022 | 495,567 | 30,643 | 6.2% | 20,315 | 27,150 | 19,909 | S100QZP5 |
| FY ending Mar 2023 | 541,579 | 32,748 | 6.0% | 21,167 | 7,455 | 1,995 | S100TPUR |
| FY ending Mar 2024 | 598,427 | 40,934 | 6.8% | 27,345 | 19,841 | 1,571 | S100WEYP |
| FY ending Mar 2025 | 671,888 | 58,326 | 8.7% | 42,380 | 18,263 | 3,375 | S100YDOZ |
| FY ending Mar 2026 | 742,022 | 83,140 | 11.2% | 63,516 | 89,451 | 73,670 | S100YDOZ |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥68.4M |
| Operating income per employee (consolidated) | ¥7.7M |
| Net income per employee (consolidated) | ¥5.9M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 10,264 | 10,320 | 10,442 | 10,558 | 10,850 |
| Average salary (parent company) | ¥7.5M | ¥7.5M | ¥8.2M | ¥9.1M | ¥10.1M |
| Average age (parent company) | 41.9 years | 42.1 years | 42.3 years | 42.4 years | 42.4 years |
| Average tenure (parent company) | 19.1 years | 19.4 years | 19.6 years | 19.5 years | 19.3 years |

Year over year: Employees (consolidated) +2.8% · Revenue (consolidated) +10.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| ENGINEERING | 731,647 | 98.6% | 80,687 | 11.0% |
| Other | 10,374 | 1.4% | 2,446 | 23.6% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| ENGINEERING | 98.6% | 97.1% | -1.5 | 11.0% |
| Other | 1.4% | 2.9% | 1.5 | 23.6% |

Segment → industry: ENGINEERING → Plant Engineering & Building Services

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 89,451 | 12.1% | S100YDOZ |
| Capital expenditure | 15,781 | 2.1% | S100YDOZ |
| Free cash flow | 73,670 | 9.9% | 算出 |
| Investing cash flow | -4,835 | -0.7% | S100YDOZ |
| Financing cash flow | -65,636 | -8.8% | S100YDOZ |
| Dividends paid | 20,644 | 2.8% | S100YDOZ |
| Share buyback | 30,001 | 4.0% | S100YDOZ |
| Change in cash | 19,315 | 2.6% | S100YDOZ |
| Cash and equivalents | 77,151 | 10.4% | S100YDOZ |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 67,423 | 61,015 | 62,438 | 57,835 | 77,151 | S100TPUR, S100WEYP, S100YDOZ |
| Total assets | 470,967 | 487,828 | 567,275 | 603,220 | 635,618 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Net assets | 293,514 | 308,457 | 345,800 | 380,949 | 405,687 | S100TPUR, S100WEYP, S100YDOZ |
| Share capital | 10,264 | 10,264 | 10,264 | 10,264 | 10,264 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Property, plant and equipment | 112,930 | 110,960 | 127,454 | 132,777 | 140,666 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Intangible assets excluding goodwill | 5,694 | 5,884 | 5,306 | 4,511 | 4,439 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Investment securities | 48,274 | 51,703 | 72,042 | 67,429 | 77,397 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Current assets | 288,170 | 303,783 | 352,160 | 385,262 | 397,872 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Current liabilities | 147,290 | 150,953 | 193,254 | 198,888 | 207,100 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Short-term borrowings | 6,792 | 7,590 | 16,668 | 16,791 | 6,097 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Long-term borrowings | 6,607 | 5,451 | 5,185 | 4,174 | 2,009 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Total liabilities | 177,452 | 179,370 | 221,475 | 222,271 | 229,931 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Non-controlling interests | 9,538 | 10,059 | 11,858 | 13,087 | 15,416 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Equity attributable to owners of parent | 273,784 | 289,594 | 310,313 | 342,508 | 355,553 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Retained earnings | 257,625 | 273,487 | 294,174 | 326,335 | 369,349 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |
| Treasury stock | -561 | -536 | -521 | -510 | -30,506 | S100QZP5, S100TPUR, S100WEYP, S100YDOZ |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 12% | S100YDOZ |
| Property, plant and equipment | 22% | S100YDOZ |
| Intangibles and goodwill | 1% | S100YDOZ |
| Investment securities | 12% | S100YDOZ |
| Other assets | 53% | S100YDOZ |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 36% | S100YDOZ |
| Equity | 64% | S100YDOZ |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 470,967 | 487,828 | 567,275 | 603,220 | 635,618 |
| Equity | 293,514 | 308,457 | 345,800 | 380,949 | 405,687 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 67,423 | 61,015 | 62,438 | 57,835 | 77,151 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 19.0% | S100YDOZ |
| Fixed assets ÷ total assets | 22.1% | S100YDOZ |
| Goodwill ÷ parent equity | — | —, S100YDOZ |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 12.1% |
| Cash ÷ revenue | 10.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 107.6% |
| Cash vs. profit gap | 25,935 JPY mn (of net income 40.8%) |
| Shareholder returns / net income | 79.7% |
| Shareholder returns / FCF | 68.7% |
| Shareholder payments — dividends / net income | 32.5% |
| Shareholder payments — dividends / FCF | 28.0% |
| CapEx intensity (capex ÷ revenue) | 2.1% |
| Investing CF relative to operating CF | 5.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 4.1% | 1.05× | 4.3% | 1.72× | 7.4% | S100QZP5 |
| 2023 | 3.9% | 1.13× | 4.4% | 1.70× | 7.5% | S100TPUR |
| 2024 | 4.6% | 1.13× | 5.2% | 1.76× | 9.1% | S100WEYP |
| 2025 | 6.3% | 1.15× | 7.2% | 1.79× | 13.0% | S100YDOZ |
| 2026 | 8.6% | 1.20× | 10.3% | 1.77× | 18.2% | S100YDOZ |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 東京電力パワーグリッド株式会社 | Major shareholder | 34.5% | 2026-03-31 |
| 日本マスタートラスト 信託銀行株式会社（信託口） | Major shareholder | 8.1% | 2026-03-31 |
| 株式会社日本カストディ銀行 （信託口） | Major shareholder | 5.4% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ 銀行決済営業部） | Major shareholder | 2.6% | 2026-03-31 |
| 関電工グループ従業員持株会 | Major shareholder | 2.5% | 2026-03-31 |
| THE CHASE MANHATTAN BANK,N.A. LONDONSECS LENDING OMNIBUS ACCOUNT （常任代理人 株式会社みずほ 銀行決済営業部） | Major shareholder | 1.1% | 2026-03-31 |
| モルガン・スタンレーMUFG証券 株式会社 | Major shareholder | 1.0% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781 （常任代理人 株式会社みずほ 銀行決済営業部） | Major shareholder | 0.9% | 2026-03-31 |
| CACEIS BANK,LUXEMBOURG BRANCH / UCITS - FULL TAX （常任代理人 シティバンク、 エヌ・エイ東京支店） | Major shareholder | 0.9% | 2026-03-31 |
| JPモルガン証券株式会社 | Major shareholder | 0.9% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥742B, up +10.4% from ¥671.9B.
- Profit rose much faster: operating income climbed +42.5% to ¥83.1B and net income +49.9% to ¥63.5B.
- Operating cash flow grew from ¥18.3B to ¥89.5B, so far more cash came in from the business than a year earlier.

### Drivers

- Private construction stayed strong, led by new factories and new or rebuilt office towers in central Tokyo.
- The company pushed sales toward AI, semiconductor and renewable energy projects, and proposed energy-saving renovations to customers.
- Splitting up back-office work and pooling site information let it keep tighter control of costs and schedules on each project.

### Risks

- A sharper-than-expected drop in construction or power-grid spending would hurt results, and part of its sales depend on the TEPCO group.
- If material and labor costs rise steeply and cannot be passed on in contract prices, margins would shrink.
- A serious workplace accident or a major quality failure on a project could also damage results.

Cited: Annual securities report (FY ending Mar 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report (FY ending Mar 2026) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第112期(2025/04/01－2026/03/31) | S100YDOZ | 2026-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YDOZ,, |
| 訂正有価証券報告書－第111期(2024/04/01－2025/03/31) | S100WEYP | 2025-07-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100WEYP,, |
| 有価証券報告書－第110期(2023/04/01－2024/03/31) | S100TPUR | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TPUR,, |
| 有価証券報告書－第109期(2022/04/01－2023/03/31) | S100QZP5 | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QZP5,, |
| 有価証券報告書－第108期(令和3年4月1日－令和4年3月31日) | S100OAUS | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OAUS,, |
| 有価証券報告書－第107期(令和2年4月1日－令和3年3月31日) | S100LJ2W | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LJ2W,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).