Tama Home Co., Ltd.

Business Details

This segment centers on the construction contracting of detached and multi-family housing, as well as renovation work. The company operates 234 sales offices nationwide (as of FY2026, ending May 2026) and, under its management policy of "better quality at lower prices," provides high-quality, reasonably priced homes to a broad customer base centered on first-time buyers. Although this is the largest segment, accounting for approximately 69% of the Group's consolidated revenue, it fell into an operating loss during the fiscal year under review.

Recent Overview

Custom-built home units delivered fell 7.5%; Housing Business fell into an operating loss

In the Housing Business for FY2026 (ending May 2026), revenue significantly deteriorated to ¥135,902 million (down 7.0% year on year), with an operating loss of ¥1,066 million (versus operating income of ¥330 million in the prior year). Customer acquisition remained sluggish due to changes in web-based marketing measures and weakening home-purchase sentiment, resulting in 5,176 custom-built home units delivered (down 7.5% year on year). On the other hand, the contract conversion rate improved as the price range aligned with market needs and thanks to order-promotion initiatives, keeping orders solid. Impairment losses in the Housing Business expanded to ¥1,541 million (from ¥960 million in the prior year). In the Renovation Business, orders for warranty-extension work remained solid.

Key Products

Growth Drivers

• Improved contract conversion rate due to price ranges aligning with market needs and the effect of order-promotion initiatives, keeping custom-built home orders solid
• Success of strengthened outreach to homeowners more than 10 years post-handover, keeping orders for warranty-extension work (anti-termite and sealing work) solid
• Cultivation of new revenue sources through expanded orders for housing equipment work such as eco-water heater replacement
• Efforts to shorten construction periods and secure revenue through earlier construction starts and thorough process management
• Maintenance of stable material procurement and construction capacity through diversification of suppliers and strengthened cooperation with partner companies and manufacturers
• Strengthening of the earnings base through expansion of the high-quality, reasonably priced product lineup and enhanced proposal capabilities under the new medium-term management plan "Tama Step 2031," whose first year is FY2027 (ending May 2027)

Risks

• Continued decline in custom-built home units delivered (5,176 units in FY2026, down 7.5% year on year) putting downward pressure on revenue and profit
• Deterioration of the earnings structure, with the Housing Business falling into an operating loss (-¥1,066 million) and impairment losses expanding to ¥1,541 million
• Continued cautiousness among consumers regarding home purchases amid price inflation and heightened attention to mortgage interest rate trends
• Pressure on profitability from persistently high construction costs (an upward trend in prices of materials centered on imported lumber and naphtha-derived products)
• Sluggish customer acquisition stemming from changes in web-based marketing measures, along with the risk of delayed response to diversifying acquisition channels
• Medium- to long-term contraction of the domestic housing market due to population decline, and worsening labor shortages and workforce aging in the construction industry