Tama Home’s core custom-built homes business fell into the red in the fiscal year ending May 2026. While declining profitability in the housing business has become apparent, detached-home subdivision sales remain on a recovery track and the real estate business is performing steadily. The company is revising its medium-term plan and aims for a V-shaped recovery by shifting to a structure focused on profitability.
In Tama Home’s results for the fiscal year ending May 2026, its core housing business fell into the red. Housing business sales were ¥135.9 billion, down ¥1.1 billion from the previous fiscal year, and the business also posted a loss at the profit level. Since profit had remained at approximately ¥300 million even in the fiscal year ended May 2025, the decline in profitability has become pronounced.
Over the 10-year period, sales and profit increased from the fiscal year ended May 2017 through the fiscal year ended May 2023, but both turned lower from the fiscal year ended May 2024 onward. The fiscal year ended May 2025 saw a substantial decline in both sales and profit, and the same situation continued in the fiscal year ending May 2026. Comparing the fiscal year ended May 2023 with the fiscal year ending May 2026, sales changed from ¥256.1 billion to ¥197.7 billion, while operating profit changed from ¥13.3 billion to ¥3.8 billion, representing a substantial deterioration.
The real estate business, meanwhile, has remained steady. In the fiscal year ending May 2026, sales were ¥54.9 billion and segment profit was ¥3.6 billion, up from ¥2.4 billion in the previous year. Orders for detached-home subdivisions changed from 1,461 units to 1,614 units, order value from ¥45.7 billion to ¥52.8 billion, and handovers from 1,348 units to 1,444 units, all showing an upward trend. This is helping the company capture demand for subdivision properties while mitigating the impact of deteriorating conditions across the housing market.
Tama Home announced a new medium-term management plan, “Tama Step 2031,” in July 2026. The company is shifting from a growth model premised on quantitative expansion to a policy focused on profitability, capital efficiency and customer experience. Its targets for the fiscal year ending May 2031 are sales of ¥310.0 billion and operating profit of ¥16.0 billion. The company aims for a V-shaped recovery by withdrawing from low-profitability businesses, strengthening profitability management, reviewing showrooms and locations, improving inventory management and construction turnover, increasing the added value of custom-built homes, and strengthening its proprietary brand in subdivision housing.