# NIPPON RIETEC 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17期(2025/04/01－2026/03/31) (S100YI6M)
> Page: https://vizora.meequs.com/en/company/nippon-rietec
> Retrieved: 2026-09-30T17:49:32.195Z

## Company

Nippon Rietec, founded in 1942, is a company in Plant Engineering & Building Services listed on TSE Prime. It has 1,434 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NIPPON RIETEC CO.,LTD. |
| Ticker | 1938 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1938.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区神田錦町一丁目6番地 |
| Representative (per filing) | 代表取締役社長執行役員 久保公人 |
| Founded | Mar 1942 |
| Share capital | ¥1.43B |
| Employees (consolidated) | 1,434 |
| Average salary (parent only) | ¥7.8M |
| Fiscal year end | March |
| Website | www.j-rietec.co.jp (https://www.j-rietec.co.jp/) |
| Corporate number | 5011501002891 |
| EDINET | E00185 |
| Industries (Vizora) | Plant Engineering & Building Services, Real Estate Development & Leasing, Disaster Prevention & Infrastructure Maintenance, Specialty Trading & Wholesale |

> Profile source: annual securities report (S100YI6M, filed 2026-06-24). As of filing

## Five-axis industry profile

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

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 52.1 | 72 |
| Profitability | 53.3 | 76 |
| Cash conversion | 43.9 | 74 |
| Efficiency | 16.4 | 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 95% of Nippon Rietec's sales come from Electricity installation work business, with Side line business and Real estate leasing business making up much of the rest.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +7.8% from the prior year, operating profit +36.8%.

## Company structure

- Segment revenue mix: Electricity installation work business 95.2%、Side line business 4.3%、Real estate leasing business 0.5%
- Revenue → net income: ¥74044898000 → ¥5551331000
- Net income → operating cash flow: ¥5551331000 → ¥4741770000（difference ¥-809561000）
- Main uses of operating cash flow: CapEx ¥1611050000 / dividends ¥1918721000 / buybacks ¥44000
- Change in cash: ¥200005000
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 | ¥74B |  |
| Operating income | ¥7.11B | Margin 9.6% |
| Net income | ¥5.55B | Margin 7.5% |
| Free cash flow | ¥3.13B |  |
| Largest business | Electricity installation work business | of segment revenue 95.2% |
| Employees (consolidated) | 1,434 |  |
| EPS | ¥178.39 |  |
| Book value per share | ¥2128.57 |  |
| Equity ratio | 68.4% |  |
| Shares outstanding | 25,117,000 |  |
| Treasury shares | 337,100 |  |
| Shareholders | 5,089 |  |
| Average salary (parent only) | ¥7.8M | Filing company only |
| Cash ratio | 8.3% | Cash ÷ revenue 11.3% |
| Vs. industry median margin | +0.5 pp | Plant Engineering & Building Services |
| ROE | 8.9% | Derived from disclosed figures |
| ROA | 5.7% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 94% of positive segment profit
- FY2026, employees -6% while operating income rose 37%

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥55200858000 | ¥74044898000 | +34.1% |
| Operating income | ¥4220772000 | ¥7113901000 | +68.5% |
| Operating margin | 7.6% | 9.6% | +2 pp |
| Employees | 1,543 people | 1,434 people | -7.1% |
| Cash and equivalents | ¥6747295000 | ¥8384704000 | +24.3% |

### 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 |
| --- | ---: |
| 電気設備工事業 → 電気設備工事業 | 93.8% |
| 兼業事業 → 兼業事業 | 4.3% |
| 兼業事業 → 事業再編・廃止 | 1.2% |
| 不動産賃貸事業 → 不動産賃貸事業 | 0.5% |
| 不動産賃貸事業 → 事業再編・廃止 | 0.1% |
| 新設・再編 → 電気設備工事業 | 1.4% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Electricity installation work business | 5 years | +6.4% | ¥70482870000 | 14.4% | 2 |
| Side line business | 5 years | +0.8% | ¥3164449000 | 13.2% | 2 |
| Real estate leasing business | 5 years | +1.1% | ¥397578000 | 51.3% | 2 |

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 74,045 | 100.0% | S100YI6M |
| Cost of revenue | 61,017 | 82.4% | S100YI6M |
| Gross profit | 13,028 | 17.6% | S100YI6M |
| SG&A | 5,914 | 8.0% | S100YI6M |
| Operating income | 7,114 | 9.6% | S100YI6M |
| Ordinary income | 7,818 | 10.6% | S100YI6M |
| Pretax income | 7,514 | 10.1% | S100YI6M |
| Income tax | 1,962 | 2.7% | S100YI6M |
| Net income | 5,551 | 7.5% | S100YI6M |
| Net income attributable to owners | 5,551 | 7.5% | S100YI6M |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 82 |
| SG&A | 8 |
| Operating income | 10 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 17.6% → Operating margin 9.6% → Net margin 7.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +7.8%; Core profit growth: +36.8%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.70×
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 | 68,670 | 74,045 | 5,375 | +7.8% |
| Gross profit | 10,844 | 13,028 | 2,184 | +20.1% |
| Operating income | 5,200 | 7,114 | 1,914 | +36.8% |
| Net income attributable to owners | 4,733 | 5,551 | 818 | +17.3% |
| Operating cash flow | 2,041 | 4,742 | 2,701 | +132.4% |
| Free cash flow | 211 | 3,131 | 2,920 | +1385.0% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 61,589 | 4,530 | 7.4% | 3,635 | 470 | -1,351 | S100LLFC |
| FY ending Mar 2021 | 55,201 | 4,221 | 7.6% | 3,279 | 3,069 | 1,549 | S100OBH9 |
| FY ending Mar 2022 | 53,231 | 3,069 | 5.8% | 2,403 | 2,625 | 1,779 | S100R46I |
| FY ending Mar 2023 | 53,745 | 2,688 | 5.0% | 2,137 | 2,168 | 1,282 | S100TSXN |
| FY ending Mar 2024 | 58,543 | 3,433 | 5.9% | 2,770 | 3,865 | 1,819 | S100W3ZH |
| FY ending Mar 2025 | 68,670 | 5,200 | 7.6% | 4,733 | 2,041 | 211 | S100YI6M |
| FY ending Mar 2026 | 74,045 | 7,114 | 9.6% | 5,551 | 4,742 | 3,131 | S100YI6M |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥51.6M |
| Operating income per employee (consolidated) | ¥5M |
| Net income per employee (consolidated) | ¥3.9M |

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) | 1,570 | 1,553 | 1,551 | 1,518 | 1,434 |
| Average salary (parent company) | ¥6.8M | ¥6.4M | ¥6.5M | ¥7M | ¥7.8M |
| Average age (parent company) | 43.2 years | 43.6 years | 42.4 years | 42.6 years | 43.0 years |
| Average tenure (parent company) | 14.8 years | 15.3 years | 14.7 years | 15.2 years | 15.5 years |

Year over year: Employees (consolidated) -5.5% · Revenue (consolidated) +7.8%

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

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Electricity installation work business | 70,483 | 95.2% | 10,152 | 14.4% |
| Side line business | 3,164 | 4.3% | 419 | 13.2% |
| Real estate leasing business | 398 | 0.5% | 204 | 51.3% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Electricity installation work business | 95.2% | 94.2% | -1.0 | 14.4% |
| Side line business | 4.3% | 3.9% | -0.4 | 13.2% |
| Real estate leasing business | 0.5% | 1.9% | 1.4 | 51.3% |

Segment → industry: Electricity installation work business → Plant Engineering & Building Services / Real estate leasing business → Real Estate Development & Leasing / Side line business → Disaster Prevention & Infrastructure Maintenance / Side line business → Specialty Trading & Wholesale

## 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 | 4,742 | 6.4% | S100YI6M |
| Capital expenditure | 1,611 | 2.2% | S100YI6M |
| Free cash flow | 3,131 | 4.2% | 算出 |
| Investing cash flow | -1,606 | -2.2% | S100YI6M |
| Financing cash flow | -2,936 | -4.0% | S100YI6M |
| Dividends paid | 1,919 | 2.6% | S100YI6M |
| Share buyback | 0 | 0.0% | S100YI6M |
| Change in cash | 200 | 0.3% | S100YI6M |
| Cash and equivalents | 8,385 | 11.3% | S100YI6M |

## 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 | 7,829 | 7,838 | 8,893 | 8,305 | 8,385 | S100TSXN, S100W3ZH, S100YI6M |
| Total assets | 79,858 | 82,854 | 87,316 | 94,625 | 101,336 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Net assets | 55,504 | 56,784 | 59,776 | 63,729 | 69,270 | S100TSXN, S100W3ZH, S100YI6M |
| Share capital | 1,431 | 1,431 | 1,431 | 1,431 | 1,431 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Property, plant and equipment | 19,870 | 20,052 | 20,974 | 21,451 | 21,417 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Intangible assets excluding goodwill | 606 | 582 | 437 | 391 | 340 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Investment securities | 14,397 | 14,664 | 16,286 | 16,185 | 20,063 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Current assets | 44,105 | 46,530 | 48,898 | 55,695 | 58,735 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Current liabilities | 17,134 | 18,351 | 20,015 | 24,402 | 25,364 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Short-term borrowings | — | — | 500 | 500 | — | S100W3ZH, S100YI6M |
| Total liabilities | 24,353 | 26,070 | 27,540 | 30,896 | 32,066 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Equity attributable to owners of parent | 53,860 | 55,143 | 56,989 | 60,856 | 64,450 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Retained earnings | 49,567 | 51,025 | 53,122 | 56,989 | 60,525 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |
| Treasury stock | -343 | -519 | -770 | -770 | -299 | S100R46I, S100TSXN, S100W3ZH, S100YI6M |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 8% | S100YI6M |
| Property, plant and equipment | 21% | S100YI6M |
| Intangibles and goodwill | 0% | S100YI6M |
| Investment securities | 20% | S100YI6M |
| Other assets | 51% | S100YI6M |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 32% | S100YI6M |
| Equity | 68% | S100YI6M |

### 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 | 79,858 | 82,854 | 87,316 | 94,625 | 101,336 |
| Equity | 55,504 | 56,784 | 59,776 | 63,729 | 69,270 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 7,829 | 7,838 | 8,893 | 8,305 | 8,385 |

## 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) | 28.9% | S100YI6M |
| Fixed assets ÷ total assets | 21.1% | S100YI6M |
| Goodwill ÷ parent equity | — | —, S100YI6M |

### 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) | 8.3% |
| Cash ÷ revenue | 11.3% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 66.7% |
| Cash vs. profit gap | -810 JPY mn (of net income -14.6%) |
| Shareholder returns / net income | 34.6% |
| Shareholder returns / FCF | 61.3% |
| Shareholder payments — dividends / net income | 34.6% |
| Shareholder payments — dividends / FCF | 61.3% |
| CapEx intensity (capex ÷ revenue) | 2.2% |
| Investing CF relative to operating CF | 33.9% |

## 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 | 4.5% | 0.67× | 3.0% | 1.48× | 4.5% | S100R46I |
| 2023 | 4.0% | 0.66× | 2.6% | 1.49× | 3.9% | S100TSXN |
| 2024 | 4.7% | 0.69× | 3.3% | 1.52× | 4.9% | S100W3ZH |
| 2025 | 6.9% | 0.75× | 5.2% | 1.54× | 8.0% | S100YI6M |
| 2026 | 7.5% | 0.76× | 5.7% | 1.56× | 8.9% | S100YI6M |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 東日本旅客鉄道株式会社 | Major shareholder | 19.6% | 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 | 7.1% | 2026-03-31 |
| 日本電設工業株式会社 | Major shareholder | 4.2% | 2026-03-31 |
| 光通信KK投資事業有限責任組合 | Major shareholder | 3.9% | 2026-03-31 |
| 日本リーテック従業員持株会 | Major shareholder | 3.9% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 3.6% | 2026-03-31 |
| 日本リーテック取引先持株会 | Major shareholder | 3.1% | 2026-03-31 |
| トーグ安全工業株式会社 | Major shareholder | 2.6% | 2026-03-31 |
| 日本信号株式会社 | Major shareholder | 2.3% | 2026-03-31 |
| 大同信号株式会社 | Major shareholder | 2.0% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第17期(2025/04/01－2026/03/31) | S100YI6M | 2026-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YI6M,, |
| 有価証券報告書－第16期(2024/04/01－2025/03/31) | S100W3ZH | 2025-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W3ZH,, |
| 有価証券報告書－第15期(2023/04/01－2024/03/31) | S100TSXN | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TSXN,, |
| 有価証券報告書－第14期(2022/04/01－2023/03/31) | S100R46I | 2023-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R46I,, |
| 有価証券報告書－第13期(令和3年4月1日－令和4年3月31日) | S100OBH9 | 2022-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OBH9,, |
| 有価証券報告書－第12期(令和2年4月1日－令和3年3月31日) | S100LLFC | 2021-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LLFC,, |

## 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).