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Earnings presentation1444Nissou Co.,Ltd.Construction and Materials

Financial Results Presentation for the Fiscal Year Ending July 2026

For the fiscal year ended July 2026, consolidated revenue increased 1.8% year on year, driven by higher revenue from the renovation business. However, higher personnel, advertising and acquisition costs, together with goodwill impairment losses at 2 subsidiaries, resulted in an operating loss and a net loss. For the fiscal year ending July 2027, the company plans to increase revenue and return to operating profitability through the consolidation of 第一技研 and the strengthening of its existing businesses.

Worth reading
79Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-139198
Thousands of yen (net income attributable to owners of the parent)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal 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 Sales5,376,559 thousand yen+1.8%
Operating profit-42,135 thousand yen
Ordinary income-51,822 thousand yen
Net income-139,198 Thousands of yen net income attributable to owners of the parent
Selling, general and administrative expenses1,347,822 thousand yen
Gross Profit Margin
Rate24.3%
Operating profit margin
Rate－%
Results for the three months of the current quarterIn the fourth quarter of the fiscal year ended July 2026, revenue increased 6.8% year on year, while the operating loss was ¥21.074 million. Acquisition costs of ¥32.180 million were incurred for 第一技研.
Full-year earnings forecast
Net Sales
6,909,930 thousand yen
Cost of sales
5,208,485 thousand yen
Gross profit
1,701,444 thousand yen
Selling, General and Administrative Expenses
1,466,315 thousand yen
Operating profit
235,129 thousand yen
Ordinary income
213,623 thousand yen
Net income for the current fiscal year
146,013 thousand yen
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。KPI target achievement rates disclosed. Progress against the full-year financial forecast: Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
KPI performance: completed construction projects, 86.9%; real estate transaction closings, △16.0%; custom-built homes, 100.0%; subdivision and spec homes, △13.3%.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Remodeling business costs-3,807,430 thousand yen
  • Real estate distribution business costs-83,460 thousand yen
  • Real estate construction business costs-179,981 thousand yen
  • Personnel expenses, including directors' remuneration-770,003 thousand yen
  • Advertising expenses-78,215 thousand yen
  • Depreciation-20,586 thousand yen
  • Other SG&A expenses-479,017 thousand yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Quantitative assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed. The company cites rising material and subcontracting costs, passing on cost increases through pricing, and maintaining and gaining market share as assumptions and policies.
New initiatives
  • Acquisition of shares in 株式会社第一技研 and making it 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”
  • Full-scale expansion of renovation orders from general corporate customers
  • Increasing awareness through social media and reviewing recruitment methods
  • A 2-day full weekly holiday system and enhanced employee benefits
Key KPIsA metric the company considers important as a management benchmark.
  • Number of completed projects10,407 Engagements
    Year on year against the same period last year△13.7%
  • Cumulative number of registered customers3,457 companies
  • Number of employees114 people
    Year on year against the same period last year10 more than at the end of the previous fiscal year
  • Real estate transaction business closings21 Engagements
  • Average holding period335 days
  • Number of custom-built home contracts signed2 Engagements
    Year on year against the same period last year△80.0%
  • Number of subdivided and spec-built home contracts signed13 Engagements
    Year on year against the same period last year+160.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The renovation business completed 10,407 projects, and the average contract value per project increased. The real estate distribution business recorded 21 closings, with an average holding period of 335 days.
Segment results
  • Renovation Business
    Net Sales5,018,221 thousand yen (YoY +4.8%)
    Operating profit5,774 thousand yen (YoY -93.0%)
  • Real Estate Distribution Business
    Net Sales122,571 thousand yen (YoY -37.9%)
    Operating profit-3,066 thousand yen
  • Real estate construction business
    Net Sales269,347 thousand yen (YoY -10.7%)
    Operating profit-39,603 thousand yen
Market Size / Share
  • Residential Renovation MarketApproximately ¥7.5 trillion
  • Rental housing renovation marketApproximately ¥1.0458 trillion
Number of employees
Number of Employees114 people
Change during the period10 more than at the end of the previous fiscal year
Hiring planStrengthening Recruitment and Talent Development
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending July 2026
Net Sales5,376,559 thousand yen (YoY +1.8%)
Operating profit-42,135 thousand yen
Ordinary income-51,822 thousand yen
Net income-139,198 Thousands of yen (net income attributable to owners of the parent)
Gross Profit MarginRate 24.3% / Year-on-year change (points) Not disclosed
Operating profit marginRate －% / Year-on-year change (points) Not disclosed
Selling, general and administrative expenses1,347,822 thousand yen
Results for the three months of the current quarterIn the fourth quarter of the fiscal year ended July 2026, revenue increased 6.8% year on year, while the operating loss was ¥21.074 million. Acquisition costs of ¥32.180 million were incurred for 第一技研.
Full-year earnings forecastNet Sales 6,909,930 thousand yen / Cost of sales 5,208,485 thousand yen / Gross profit 1,701,444 thousand yen / Selling, General and Administrative Expenses 1,466,315 thousand yen / Operating profit 235,129 thousand yen / Ordinary income 213,623 thousand yen / Net income for the current fiscal year 146,013 thousand yen
Progress against full-year forecastKPI target achievement rates disclosed. Progress against the full-year financial forecast: Not disclosed
Self-assessment against the planKPI performance: completed construction projects, 86.9%; real estate transaction closings, △16.0%; custom-built homes, 100.0%; subdivision and spec homes, △13.3%.
Segment resultsSegment Renovation Business / Net Sales 5,018,221 thousand yen (YoY +4.8%) / Operating profit 5,774 thousand yen (YoY -93.0%), Segment Real Estate Distribution Business / Net Sales 122,571 thousand yen (YoY -37.9%) / Operating profit -3,066 thousand yen, Segment Real estate construction business / Net Sales 269,347 thousand yen (YoY -10.7%) / Operating profit -39,603 thousand yen
Breakdown of Factors Affecting the ChangeFactors Remodeling business costs / Amount -3,807,430 thousand yen, Factors Real estate distribution business costs / Amount -83,460 thousand yen, Factors Real estate construction business costs / Amount -179,981 thousand yen, Factors Personnel expenses, including directors' remuneration / Amount -770,003 thousand yen, Factors Advertising expenses / Amount -78,215 thousand yen, Factors Depreciation / Amount -20,586 thousand yen, Factors Other SG&A expenses / Amount -479,017 thousand yen
Key KPIsIndicator name Number of completed projects / Value 10,407 Engagements / Year on year against the same period last year △13.7%, Indicator name Cumulative number of registered customers / Value 3,457 companies / Year on year against the same period last year Not disclosed, Indicator name Number of employees / Value 114 people / Year on year against the same period last year 10 more than at the end of the previous fiscal year, Indicator name Real estate transaction business closings / Value 21 Engagements / Year on year against the same period last year Not disclosed, Indicator name Average holding period / Value 335 days / Year on year against the same period last year Not disclosed, Indicator name Number of custom-built home contracts signed / Value 2 Engagements / Year on year against the same period last year △80.0%, Indicator name Number of subdivided and spec-built home contracts signed / Value 13 Engagements / Year on year against the same period last year +160.0%
Unit price and quantity metricsThe renovation business completed 10,407 projects, and the average contract value per project increased. The real estate distribution business recorded 21 closings, with an average holding period of 335 days.
Number of employeesNumber of Employees 114 people / Change during the period 10 more than at the end of the previous fiscal year / Hiring plan Strengthening Recruitment and Talent Development
Assumptions Underlying the Business OutlookQuantitative assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed. The company cites rising material and subcontracting costs, passing on cost increases through pricing, and maintaining and gaining market share as assumptions and policies.
Market Size / ShareItem Residential Renovation Market / Value Approximately ¥7.5 trillion, Item Rental housing renovation market / Value Approximately ¥1.0458 trillion
New initiativesAcquisition of shares in 株式会社第一技研 and making it 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”, Full-scale expansion of renovation orders from general corporate customers, Increasing awareness through social media and reviewing recruitment methods, A 2-day full weekly holiday system and enhanced employee benefits
Items this document does not state (10)
Number of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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.

Revenue increased due to the acquisition of new customers and growth in renovation projects, while selling, general and administrative expenses rose due to the increase in consolidated subsidiaries, higher personnel and advertising costs, and acquisition costs for 第一技研. In addition, goodwill impairment losses were recognized because the sales performance of 2 subsidiaries fell significantly below expectations.

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Financial Results Presentation for the Fiscal Year Ending July 2026 | Nissou Co.,Ltd. (1444) timely disclosure | Komori