Infroneer Holdings to Allocate ¥270 Billion for Growth Investments
Significant Increases Planned in Profit Targets for Building and Civil Engineering Divisions
17 November 2025 – Corporate & Management
Infroneer Holdings (HD) announced on the 14th a revised medium-term management plan reflecting its management integration with Sumitomo Mitsui Construction. The company plans to invest between ¥230 billion and ¥270 billion in growth initiatives by fiscal year 2027, the final year of the plan—an increase of ¥10–20 billion from the initial target. Profit targets (IFRS operating profit) for the building and civil engineering divisions, where significant synergies in construction capacity are expected, have also been revised upward.
The breakdown of growth investments is as follows:
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Renewable energy: ¥123–133 billion
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Overseas business: ¥18 billion
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Public-private partnerships (PPP): ¥15–35 billion
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Battery storage: ¥50–60 billion
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IT/DX: ¥20 billion
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Human capital investment: ¥4 billion
Compared with the initial plan, renewable energy investments have been increased by ¥3–13 billion, IT/DX by ¥5 billion, and human capital by ¥1 billion. All other categories remain unchanged.
Revised business profit targets are:
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Building: ¥28.7 billion (initial: ¥13.4 billion)
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Civil engineering: ¥34.7 billion (¥17.8 billion)
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Infrastructure operations: ¥7.1 billion (¥9.2 billion)
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Paving: ¥26.2 billion (¥24.7 billion)
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Machinery: ¥2.7 billion (¥2.6 billion)
Return on equity (ROE) will be raised from 9.0% to 12.0% through improved asset efficiency and profitability.
In contracted construction businesses, the company aims to win orders for super-high-rise building projects by leveraging Sumitomo Mitsui Construction’s precast concrete (PCa) technologies. Overseas, it will target India in the building sector and the Philippines and Bangladesh in civil engineering, focusing on expanding large-scale official development assistance (ODA) projects.
Infroneer plans to combine Maeda Construction’s infrastructure operation expertise with Sumitomo Mitsui Construction’s track record, exploring new business models that integrate ODA with concession schemes to strengthen its earnings base.
