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Financial Results Presentation5932Sankyo Tateyama,Inc.Construction and Materials

Financial Results Presentation for the Fiscal Year Ending May 2026

In the fiscal year ended May 2026, the Building Materials Business recorded an impairment loss of approximately ¥16.2 billion, primarily due to a sharp rise in aluminum ingot prices, resulting in a net loss. For the fiscal year ending May 2027, operating profit is expected to improve to ¥4.0 billion, but is forecast to fall short of the ¥7.0 billion operating profit target under the medium-term management plan.

Worth reading
80Important
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
162
¥100 million (impairment loss)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFiscal year ending May 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales3,575 Hundreds of millions of yen-0.5%
Operating profit15 Hundreds of millions of yen+0.1%
Ordinary income8 Hundreds of millions of yen-6.6%
Net income-134 Hundreds of millions of yen
Operating profit margin0.4 %
Results for the three months of the current quarter
Three months of the fourth quarter of the fiscal year ended May 2026
Building Materials Business
Net Sales
407 Hundreds of millions of yen
Segment profit
8 Hundreds of millions of yen
Materials Business
Net Sales
192 Hundreds of millions of yen
Segment profit
6 Hundreds of millions of yen
Commercial facilities business
Net Sales
117 Hundreds of millions of yen
Segment profit
3 Hundreds of millions of yen
International Business
Net Sales
227 Hundreds of millions of yen
Segment profit
-2 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
3,900 Hundreds of millions of yen
Operating profit
40 Hundreds of millions of yen
Ordinary income
15 Hundreds of millions of yen
Profit attributable to owners of the parent
10 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Actual results for the fiscal year ended May 2026 exceeded the revised plan. Forecast results for the fiscal year ending May 2027 are expected to fall short of the medium-term management plan in all businesses.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating profit for the fiscal year ended May 2026
Impact of lower sales-44
Impact on gross profit19
Price revision59
Operating-rate impact-17
Cost reductions at European subsidiaries8
Change in the composition of European subsidiaries-6
Lower volumes at Thai subsidiaries-3
Other2
Impact of aluminum ingot prices-1
Impact of materials, electricity and fuel prices-5
Year-on-year change in operating profit for the fiscal year ending May 2027
Impact of higher sales11
Impact on gross profit22
Price revision88
Operating-rate impact-3
Impact of aluminum ingot prices-119
Impact of materials, electricity and fuel prices-32
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Aluminum ingot prices
635 Yen/kg
Dollar
¥160
Euro
¥175
Baht
¥4.5
Source
¥23
New initiatives
  • Transition of the Building Materials Business to a functional organizational structure
  • Launch of a comprehensive restructuring of the Building Materials Business
  • Gradual reduction and review of non-priority areas
  • Bringing forward the consolidation of factories (from 7 factories to 5)
  • Installation of a dedicated scrap melting furnace at the Nago Factory (total investment of approximately ¥2.0 billion)
  • Dealership agreement with Pudu Robotics Japan Co., Ltd. and launch of commercial robot offerings
Key KPIsA metric the company considers important as a management benchmark.
  • New housing starts71.1 10,000 units
    Year on year against the same period last year-12.8%
  • New housing starts (owner-occupied homes)19.5 10,000 units
    Year on year against the same period last year-12.5%
  • New housing starts (rental homes)30.9 10,000 units
    Year on year against the same period last year-13.4%
  • Floor area of new non-wooden building starts52.3 million m²
    Year on year against the same period last year-11.6%
  • Extruded aluminum profiles by weight (excluding sashes and doors)34.2 10,000 tonnes
    Year on year against the same period last year-2.2%
  • New commercial building starts (stores)6,589 buildings
    Year on year against the same period last year+14.4%
  • German automobile production413.6 10,000 units
    Year on year against the same period last year-0.8%
  • Thai automobile production147.4 10,000 units
    Year on year against the same period last year+4.8%
  • Average aluminum ingot price546.3 Yen/kg
Segment results
Building Materials Business
Net Sales
1,675 Hundreds of millions of yen-6.2%
Segment profit
10 Hundreds of millions of yen+352.2%
Materials Business
Net Sales
677 Hundreds of millions of yen+13.3%
Segment profit
23 Hundreds of millions of yen-9.6%
Commercial facilities business
Net Sales
425 Hundreds of millions of yen-4.3%
Segment profit
7 Hundreds of millions of yen-50.8%
International Business
Net Sales
792 Hundreds of millions of yen+4.0%
Segment profit
-24 Hundreds of millions of yen
Medium-term management plan targets
Net Sales
3,850 Hundreds of millions of yen
Target fiscal yearFiscal year ending May 2027
Operating profit
70 Hundreds of millions of yen
Target fiscal yearFiscal year ending May 2027
Operating profit margin
1.8 %
Target fiscal yearFiscal year ending May 2027
Financial targets
Equity ratio
End of the fiscal year ended May 202530.4 %
End of the fiscal year ended May 202629.6 %
Market Size / Share
New housing starts711,000 units (2025, down 12.8% year on year)
Floor area of new non-wooden building starts52.3 million m² (2025, down 11.6% year on year)
Market size descriptionThe market has contracted by approximately 25% compared with fiscal 2018
Number of employees
Number of Employees9,542 People consolidated permanent employees, as of the end of the fiscal year ended May 2026
Change during the period-470 People consolidated permanent employees, as of the end of the fiscal year ended May 2026
Capital expenditures
¥184 100 million actual for the fiscal year ended May 2026
Annual Dividend
¥25 per share
Breakdown
Interim Dividend12.5
Year-end dividend12.5
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFiscal year ending May 2026
Net Sales3,575 Hundreds of millions of yen (YoY -0.5%)
Operating profit15 Hundreds of millions of yen (YoY +0.1%)
Ordinary income8 Hundreds of millions of yen (YoY -6.6%)
Net income-134 Hundreds of millions of yen
Operating profit margin0.4 %
Results for the three months of the current quarterSubject Three months of the fourth quarter of the fiscal year ended May 2026 / Building Materials Business Net Sales 407 Hundreds of millions of yen / Segment profit 8 Hundreds of millions of yen / Materials Business Net Sales 192 Hundreds of millions of yen / Segment profit 6 Hundreds of millions of yen / Commercial facilities business Net Sales 117 Hundreds of millions of yen / Segment profit 3 Hundreds of millions of yen / International Business Net Sales 227 Hundreds of millions of yen / Segment profit -2 Hundreds of millions of yen
Full-year earnings forecastNet Sales 3,900 Hundreds of millions of yen / Operating profit 40 Hundreds of millions of yen / Ordinary income 15 Hundreds of millions of yen / Profit attributable to owners of the parent 10 Hundreds of millions of yen
Self-assessment against the planActual results for the fiscal year ended May 2026 exceeded the revised plan. Forecast results for the fiscal year ending May 2027 are expected to fall short of the medium-term management plan in all businesses.
Segment resultsBuilding Materials Business Net Sales 1,675 Hundreds of millions of yen (YoY -6.2%) / Segment profit 10 Hundreds of millions of yen (YoY +352.2%) / Materials Business Net Sales 677 Hundreds of millions of yen (YoY +13.3%) / Segment profit 23 Hundreds of millions of yen (YoY -9.6%) / Commercial facilities business Net Sales 425 Hundreds of millions of yen (YoY -4.3%) / Segment profit 7 Hundreds of millions of yen (YoY -50.8%) / International Business Net Sales 792 Hundreds of millions of yen (YoY +4.0%) / Segment profit -24 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeYear-on-year change in operating profit for the fiscal year ended May 2026 Impact of lower sales -44 / Impact on gross profit 19 / Price revision 59 / Operating-rate impact -17 / Cost reductions at European subsidiaries 8 / Change in the composition of European subsidiaries -6 / Lower volumes at Thai subsidiaries -3 / Other 2 / Impact of aluminum ingot prices -1 / Impact of materials, electricity and fuel prices -5 / Year-on-year change in operating profit for the fiscal year ending May 2027 Impact of higher sales 11 / Impact on gross profit 22 / Price revision 88 / Operating-rate impact -3 / Impact of aluminum ingot prices -119 / Impact of materials, electricity and fuel prices -32
Key KPIsIndicator name New housing starts / Value 71.1 10,000 units / Year on year against the same period last year -12.8 10,000 units, Indicator name New housing starts (owner-occupied homes) / Value 19.5 10,000 units / Year on year against the same period last year -12.5 10,000 units, Indicator name New housing starts (rental homes) / Value 30.9 10,000 units / Year on year against the same period last year -13.4 10,000 units, Indicator name Floor area of new non-wooden building starts / Value 52.3 million m² / Year on year against the same period last year -11.6 million m², Indicator name Extruded aluminum profiles by weight (excluding sashes and doors) / Value 34.2 10,000 tonnes / Year on year against the same period last year -2.2 10,000 tonnes, Indicator name New commercial building starts (stores) / Value 6,589 buildings / Year on year against the same period last year 14.4 buildings, Indicator name German automobile production / Value 413.6 10,000 units / Year on year against the same period last year -0.8 10,000 units, Indicator name Thai automobile production / Value 147.4 10,000 units / Year on year against the same period last year 4.8 10,000 units, Indicator name Average aluminum ingot price / Value 546.3 Yen/kg / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 9,542 People (consolidated permanent employees, as of the end of the fiscal year ended May 2026) / Change during the period -470 People (consolidated permanent employees, as of the end of the fiscal year ended May 2026)
Assumptions Underlying the Business OutlookAluminum ingot prices 635 Yen/kg / Dollar ¥160 / Euro ¥175 / Baht ¥4.5 / Source ¥23
Medium-term management plan targetsNet Sales 3,850 Hundreds of millions of yen / Operating profit 70 Hundreds of millions of yen / Operating profit margin 1.8 %
Financial targetsEquity ratio End of the fiscal year ended May 2025 30.4 % / End of the fiscal year ended May 2026 29.6 %
Annual Dividend¥25 per share
Capital expenditures¥184 100 million (actual for the fiscal year ended May 2026)
Market Size / ShareNew housing starts 711,000 units (2025, down 12.8% year on year) / Floor area of new non-wooden building starts 52.3 million m² (2025, down 11.6% year on year) / Market size description The market has contracted by approximately 25% compared with fiscal 2018
New initiativesTransition of the Building Materials Business to a functional organizational structure, Launch of a comprehensive restructuring of the Building Materials Business, Gradual reduction and review of non-priority areas, Bringing forward the consolidation of factories (from 7 factories to 5), Installation of a dedicated scrap melting furnace at the Nago Factory (total investment of approximately ¥2.0 billion), Dealership agreement with Pudu Robotics Japan Co., Ltd. and launch of commercial robot offerings
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders 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.

Aluminum ingot prices surged due to the impact of the situation in the Middle East in February 2026. In addition, the construction market contracted, production volumes declined, and increases in materials, energy, labor, logistics and other costs continued, creating a situation that could no longer be absorbed through existing price revisions and cost reductions. For the fiscal year ending May 2027, the Company expects lower volumes due to stagnation in the construction market, higher assumed aluminum ingot prices and increases in various costs.

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Financial Results Presentation for the Fiscal Year Ending May 2026 | Sankyo Tateyama,Inc. (5932) timely disclosure | Komori