New Kanamoto plan targets acquisitions

Kanamoto acquired Victorian-headquartered rental company Porter Plant Group in 2020. (Photo: Kanamoto)

Japanese rental company Kanamoto has unveiled a new medium-term business plan in which it aims to achieve double digit revenue growth between 2025 and 2029.

Under the plan, the company aims to hit ¥235 billion (€1.4 billion) revenues across the business by 2029, aided by a mix of mergers and acquisitions, improvement of asset utilisation and growth of its overseas business.

In its results for the 2024 financial year, the company posted revenues of  ¥207,218 billion (€1.2 billion), up by 5% on 2023. EBITDA increased by 6.7% to ¥61.7 billion (€382 million).

Revenues from its overseas businesses, including Australia and Indonesia, accounted for 3.7% of equipment rental revenues, however, the company said it plans to increase this figure to 10%, prioritising entries into profitable markets via mergers and acquisitions.

Additionally, it will also focus on a “continued shift toward North America.” Speaking to IRN last year, Tetsuo Kanamoto, president of Kanamoto, said the company aims to be a top five rental company in the future, with activity in North America offering the clearest path.

He said, “To be top five I think we need to be in the North American market, which is very attractive. We’ve already begun a feasibility study to look into that and we’re looking into the US in depth.”

At the same time, the company said it aims to invest in the enhancement of data and digital technologies. This consists of higher productivity through data sharing between customers, builders, and rental companies using BIM/CIM and the expansion of ICT construction machinery (with remote/automated operations) to advance labor-savings and off-site operations.

Additionally, it said it is looking into generative AI and telematics research to “take us into a new era of people, companies, and construction machinery.”

For sustainability, the company is aiming to increase its offering of hybrid and electric equipment and to become carbon neutral by 2050.