Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
5916
¥ thousand (year-on-year change in sales)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsThird quarter of the fiscal year ending July 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,956,908 thousand+0.1%
Operating profit¥-21,060 thousand
Ordinary income¥-23,887 thousand
Net income¥-75,137 thousand net income attributable to owners of the parent
Selling, general and administrative expenses¥972,535 thousand
Gross Profit Margin
Rate24.0%
Operating profit margin
Rate— (cumulative third quarter)
Results for the three months of the current quarterSales decreased 6.0% from the prior-year third-quarter accounting period; operating profit was ¥21.548 million, with an operating margin of 1.6%.
Full-year earnings forecast
Net Sales
¥5,515,381 thousand
Operating profit
¥-16,040 thousand
Ordinary income
¥-23,350 thousand
Profit attributable to owners of the parent
¥-91,089 thousand
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。Sales: 71.7%. Key KPIs were 66.7% for completed projects, 60.0% for contracts signed, 50% for custom-built homes, and 46.7% for subdivided and spec-built homes.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The number of orders was lower than expected, and there were almost no sales of custom-built or spec-built homes, resulting in a difficult outcome.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Remodeling business costs¥-2,872,304 thousand
- Real estate distribution business costs¥-19,962 thousand
- Real estate construction business costs¥-113,166 thousand
- Personnel expenses, including directors' remuneration¥-574,167 thousand
- Advertising expenses¥-59,286 thousand
- Depreciation¥-14,374 thousand
- Other SG&A expenses¥-324,707 thousand
New initiatives
- Making 第一技研 a subsidiary
- Launch of the new “990万円の家” brand (¥9.9 million house)
- Launch of the independence-support franchise “クロス家さん”
- Consideration of opening new stores for the B2C remodeling business “リフォームプロ”
- Recruitment activities involving direct approaches to young talent
- Full-scale launch of graduate recruitment
Key KPIsA metric the company considers important as a management benchmark.
- Number of completed projects7,995 EngagementsYear on year against the same period last year-1.2%
- Cumulative number of registered customers3,408 companies
- Number of employees108 People
- Number of contracts signed in the real estate distribution business15 Engagements
- Average holding period267 days
- Number of custom-built home contracts signed1 Engagements
- Number of subdivided and spec-built home contracts signed7 Engagements
Unit price and quantity metricsThese figures show sales broken down by price and volume.
While the remodeling business achieved growth in the average value of construction orders, the number of completed projects was 7,995. Brokerage generated sales of ¥22.055 million from 14 transactions, while the buy-and-resell business generated sales of ¥23.371 million from 1 transaction.Segment results
- Renovation BusinessNet Sales3,772,415Revenue unit¥ thousandYear-on-year change in revenue+5.0%Operating profit28,931Profit unit¥ thousandYear-on-year operating profit growth-64.3%
- Real Estate Distribution BusinessNet Sales45,426Revenue unit¥ thousandYear-on-year change in revenue-72.2%Operating profit-6,456Profit unit¥ thousandYear-on-year operating profit growthLoss
- Real estate construction businessNet Sales172,647Revenue unit¥ thousandYear-on-year change in revenue-14.8%Operating profit-37,517Profit unit¥ thousandYear-on-year operating profit growthLoss
- AdjustmentsNet Sales-33,580Revenue unit¥ thousandOperating profit-6,018Profit unit¥ thousand
Financial targets
Equity ratio: 49.7% as of the end of the third quarter of the fiscal year ending July 2026; target: Not disclosed.Market Size / Share
The residential remodeling market is approximately ¥7.3 trillion, and the rental housing remodeling market is approximately ¥924.3 billion.Number of employees
The consolidated group had 108 employees as of the end of April 2026, an increase of 4 during the cumulative third-quarter period. The full-year plan is 117 employees. 第一技研 had 8 employees as of 7 May 2026.| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Third quarter of the fiscal year ending July 2026 |
| Net Sales | ¥3,956,908 thousand (YoY +0.1%) |
| Operating profit | ¥-21,060 thousand |
| Ordinary income | ¥-23,887 thousand |
| Net income | ¥-75,137 thousand (net income attributable to owners of the parent) |
| Gross Profit Margin | Rate 24.0% / Year-on-year change (points) Not disclosed |
| Operating profit margin | Rate — (cumulative third quarter) / Year-on-year change (points) Not disclosed |
| Selling, general and administrative expenses | ¥972,535 thousand |
| Results for the three months of the current quarter | Sales decreased 6.0% from the prior-year third-quarter accounting period; operating profit was ¥21.548 million, with an operating margin of 1.6%. |
| Full-year earnings forecast | Net Sales ¥5,515,381 thousand / Operating profit ¥-16,040 thousand / Ordinary income ¥-23,350 thousand / Profit attributable to owners of the parent ¥-91,089 thousand |
| Progress against full-year forecast | Sales: 71.7%. Key KPIs were 66.7% for completed projects, 60.0% for contracts signed, 50% for custom-built homes, and 46.7% for subdivided and spec-built homes. |
| Self-assessment against the plan | The number of orders was lower than expected, and there were almost no sales of custom-built or spec-built homes, resulting in a difficult outcome. |
| Segment results | Segment Renovation Business / Net Sales 3,772,415 / Revenue unit ¥ thousand / Year-on-year change in revenue +5.0% / Operating profit 28,931 / Profit unit ¥ thousand / Year-on-year operating profit growth -64.3%, Segment Real Estate Distribution Business / Net Sales 45,426 / Revenue unit ¥ thousand / Year-on-year change in revenue -72.2% / Operating profit -6,456 / Profit unit ¥ thousand / Year-on-year operating profit growth Loss, Segment Real estate construction business / Net Sales 172,647 / Revenue unit ¥ thousand / Year-on-year change in revenue -14.8% / Operating profit -37,517 / Profit unit ¥ thousand / Year-on-year operating profit growth Loss, Segment Adjustments / Net Sales -33,580 / Revenue unit ¥ thousand / Operating profit -6,018 / Profit unit ¥ thousand |
| Breakdown of Factors Affecting the Change | Factors Remodeling business costs / Amount ¥-2,872,304 thousand, Factors Real estate distribution business costs / Amount ¥-19,962 thousand, Factors Real estate construction business costs / Amount ¥-113,166 thousand, Factors Personnel expenses, including directors' remuneration / Amount ¥-574,167 thousand, Factors Advertising expenses / Amount ¥-59,286 thousand, Factors Depreciation / Amount ¥-14,374 thousand, Factors Other SG&A expenses / Amount ¥-324,707 thousand |
| Key KPIs | Indicator name Number of completed projects / Value 7,995 Engagements / Year on year against the same period last year -1.2%, Indicator name Cumulative number of registered customers / Value 3,408 companies / Year on year against the same period last year Not disclosed, Indicator name Number of employees / Value 108 People / Year on year against the same period last year Not disclosed, Indicator name Number of contracts signed in the real estate distribution business / Value 15 Engagements / Year on year against the same period last year Not disclosed, Indicator name Average holding period / Value 267 days / Year on year against the same period last year Not disclosed, Indicator name Number of custom-built home contracts signed / Value 1 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of subdivided and spec-built home contracts signed / Value 7 Engagements / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | While the remodeling business achieved growth in the average value of construction orders, the number of completed projects was 7,995. Brokerage generated sales of ¥22.055 million from 14 transactions, while the buy-and-resell business generated sales of ¥23.371 million from 1 transaction. |
| Number of employees | The consolidated group had 108 employees as of the end of April 2026, an increase of 4 during the cumulative third-quarter period. The full-year plan is 117 employees. 第一技研 had 8 employees as of 7 May 2026. |
| Financial targets | Equity ratio: 49.7% as of the end of the third quarter of the fiscal year ending July 2026; target: Not disclosed. |
| Market Size / Share | The residential remodeling market is approximately ¥7.3 trillion, and the rental housing remodeling market is approximately ¥924.3 billion. |
| New initiatives | Making 第一技研 a subsidiary, Launch of the new “990万円の家” brand (¥9.9 million house), Launch of the independence-support franchise “クロス家さん”, Consideration of opening new stores for the B2C remodeling business “リフォームプロ”, Recruitment activities involving direct approaches to young talent, Full-scale launch of graduate recruitment |
Items this document does not state (10)
Number of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A
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.Sales increased in the remodeling business due to the acquisition of new customers and an increase in renovation projects. SG&A expenses increased due to the addition of consolidated subsidiaries and higher personnel and advertising expenses. In the real estate construction business, a goodwill impairment loss was recorded because orders for custom-built homes fell significantly short of expectations.
How to read this page
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