mbs,inc.
1401・Growth Market・Construction
Business
MBS Co., Ltd. is a construction company whose core business is exterior wall and interior renovation work aimed at the maintenance and preservation of aging detached houses, multi-unit residential buildings, commercial buildings, historic structures, bridges, and similar structures. At its core is its proprietary "Home Makeup Method" (comprising four construction techniques: clear coating, color coating, skeleton disaster-prevention coating, and applied special construction), which uses special functional coatings manufactured by Sika Limited (UK), and the company provides a 10-year quality warranty after construction. Its main customers are partner companies such as construction contractors, general contractors, and homebuilders, and it operates on a nationwide scale through a network of 27 locations. It also handles skeleton disaster-prevention coating for public infrastructure (bridge piers, tunnels, etc.), capturing demand from both private and public sectors.
Business Model
The majority of revenue comes from the Home Makeup business (net sales of ¥4,582 million and a segment profit margin of 19.9% in FY2025 (ending May 2025)). Orders are received through a network of partnerships with prime contractors (construction companies, general contractors, etc.), and the company provides one-stop construction services—from scaffolding to plastering, waterproofing, painting, and sealing—all managed in-house. Rather than engaging in door-to-door sales, the company's basic approach is to secure orders through brand strategy and deepened relationships, while outsourcing a portion of work to certified contractors to flexibly accommodate fluctuations in demand.
Company Strengths
The 'Home Makeup Method' using special functional coatings manufactured by Sika Limited (UK) consists of four technologies: clear coating, color coating, skeleton disaster-prevention coating, and applied special construction. The company provides a 10-year quality warranty after construction, and its industry-first one-stop service (integrated construction from scaffolding to painting and sealing) achieves clear pricing and unified responsibility.
Since its founding as a sole proprietorship in 1993, the company has progressively expanded its locations, establishing a nationwide network of 27 branches as of June 2025, including the Kanazawa branch. It covers major metropolitan areas such as Tokyo, Osaka, Fukuoka, and Nagoya, establishing an order-taking foundation through a wide-ranging partner network. In FY2025 (ended May 2025), Home Makeup segment sales reached ¥4,582 million, up 14.7% year on year.
In FY2025 (ended May 2025), the ordinary income margin was 14.3%, ROE was 13.2%, and the equity ratio was 75.8%, all exceeding the company's own targets (ordinary income margin of 10% or higher, equity ratio of 50% or higher, and ROE of 8% or higher). While maintaining a financial structure close to debt-free management, the company secured operating cash flow of ¥567,895 thousand. PBR of 1.6x also exceeds the target of over 1.0x.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive periods of growth, rising from ¥4,030 million in FY2022 (ending May 2022) to ¥5,029 million in FY2026 (ending May 2026). Operating income expanded from ¥440 million in FY2022 (ending May 2022) to ¥722 million in FY2026 (ending May 2026), with the operating margin also continuing to improve from 10.9% to 14.4%. In FY2026 (ending May 2026), completed construction revenue rose 8.3% year on year to ¥4,745 million, driven by the core business. Ordinary income increased 40.6% year on year to ¥945 million, including one-time gains such as a gain on insurance cancellation of ¥127 million and a gain on redemption of foreign bonds of ¥54 million. Amid continued elevated levels of construction material prices and labor costs as external factors, the company has achieved margin improvement through an order acceptance policy emphasizing construction profitability and enhanced cost management.
Growth Strategy
Sustainable growth through the expanded adoption of the Home Make-Cap Method and expansion into the social infrastructure sector
Continuing to strengthen relationships with partners such as construction contractors at existing stores, driving order expansion through enhanced sales activities. In FY2026 (ending May 2026), Home Make-Cap business net sales increased 4.8% year-on-year to ¥4,804 million, with segment profit up 8.0% year-on-year to ¥983 million, demonstrating steady results.
Expanding the proprietary "Home Make-Cap Method" (ホームメイキャップ工法) beyond residential buildings, condominiums, and commercial buildings into the social infrastructure sector, including bridges and tunnels. Growing demand for maintenance and repair due to the aging of social infrastructure is expected to serve as a tailwind as an external factor, though specific order results for the current period have not been disclosed.
Due to increased orders for new construction and renovation work, construction business net sales in FY2026 (ending May 2026) rose 46.1% year-on-year to ¥188 million, and segment profit turned positive, increasing 492.7% year-on-year to ¥3 million. The company continues to pursue scale expansion and improved profitability, although the absolute figures remain small.
Promoting an order-taking policy that emphasizes construction profitability, strengthening construction management systems, improving quality and technical capabilities, and thoroughly enforcing safety management. The operating profit margin on net sales for FY2026 (ending May 2026) improved to 14.4% (from 13.3% in the previous period), reflecting the effects of these initiatives in the numbers.
Last updated: July 17, 2026