mbs,inc.

Business Details

Using the proprietary "Home Makeup Method" (a special functional coating technique), the company performs exterior wall and interior repair/renovation work on detached houses, multi-unit residential buildings, commercial buildings, historic structures, roads, bridges, and other structures. Distinguishing features include a 10-year quality warranty after construction and a one-stop service covering everything from scaffolding to painting. Orders are received through two formats: a direct-management format via partners (construction companies, etc.) and a franchise format via FC member stores. This is the core segment, accounting for approximately 95.5% of the company's total revenue.

Recent Overview

Both revenue and profit increased due to steady construction progress, with the profit margin also improving

In the Home Makeup business for FY2026 (ending May 2026), segment revenue reached ¥4,803,527 thousand (up 4.8% year on year) and segment profit reached ¥983,189 thousand (up 8.0% year on year), driven by continued strengthening of relationships with partners (construction companies, etc.) leading to expanded orders, and steady progress in construction work. The segment profit margin improved to 20.5% from 19.9% in the prior period. Note that franchise-related revenue decreased to ¥248,825 thousand from ¥331,868 thousand in the prior period.

Key Products

Growth Drivers

• Expansion of orders through continued strengthening of relationships with partners (construction companies, etc.)
• Improved profit margins through expanded orders for high-value-added projects (such as skeleton disaster-prevention coating)
• Improvement in segment profit margin (from 19.9% to 20.5%) through strengthened cost management and improved construction efficiency
• Wide-area expansion and development of new partners leveraging the nationwide network of locations
• Expansion of construction work into social infrastructure fields such as bridges and tunnels, driven by demand related to aging infrastructure and life extension needs
• Steady trend in maintenance and repair demand for existing houses and buildings

Risks

• Risk of delays in construction progress due to construction start delays or unfavorable weather
• Risk of supply disruptions and price surges for petroleum- and naphtha-derived raw materials amid tensions in the Middle East
• Pressure on construction profitability from persistently high material and labor costs (construction costs continuing to rise)
• Constraints on construction capacity due to a shortage of skilled construction workers
• Risk of earnings volatility due to uncertainty in the timing of large-scale order receipt and construction progress
• Risk of customer concentration due to an order structure heavily dependent on partners (construction companies, etc.)
• Declining contribution to earnings from the FC business due to a downward trend in franchise-related revenue (down 25.0% year on year)