NIPPON AQUA.Co.,LTD
1429・Prime Market・Construction
Business
Nihon Aqua Co., Ltd. is primarily engaged in the development, sale, and installation of "Aqua Foam Series," spray-applied rigid urethane foam for building insulation, and "Aqua Hajikun," an ultra-fast-curing waterproofing material. Founded in 2004, the company moved to the Prime Market of the Tokyo Stock Exchange in 2022. The business is composed of five segments: insulation installation for detached houses (approximately 47% of net sales), insulation installation for buildings (approximately 29%), waterproofing installation (approximately 5%), raw material sales (approximately 6%), and product sales (approximately 13%). Through a nationwide network of 45 business offices and a system of certified installation partners, the company operates nationwide, serving major customers such as housebuilders, builders, and general contractors.
Business Model
Raw materials are sourced globally from both domestic and overseas suppliers on a diversified basis, and proprietary-brand materials manufactured by contracted manufacturers are supplied from nationwide bases to certified installation contractors. Installation work is handled through a two-pronged approach combining certified installation contractors and the company's own installation division, providing integrated coverage from order receipt through installation and quality control. The company maintains a composite revenue structure combining paid supply of raw materials, outsourced installation costs, sales of auxiliary materials, and equipment sales, with cost management leveraging scale advantages and a nationwide logistics network supporting profitability.
Company Strengths
The company has 45 business locations nationwide (as of the end of December 2025) and a network of certified installation contractors, holding the top domestic track record in on-site spray polyurethane foam insulation installation. In FY2025 (ended December 2025), the number of houses installed increased 11.1% year on year, and sales in the detached housing segment reached ¥15,765 million. The company has also obtained certification from IBEC as a superior on-site insulation installation system.
The mainstay product "Aqua Forme" has a thermal conductivity of 0.033 W/(m·k) or less, meeting the FY2016 energy conservation standards and ZEH standards. The mandatory compliance with energy conservation standards (insulation grade 4) starting April 2025, and the planned upgrade to GX ZEH (insulation grade 6) to be applied from April 2027, are driving structural demand expansion, directly linking policy trends with product competitiveness.
The waterproofing segment (Aqua Hajikun), which the company entered in September 2020, has gained orders from large logistics centers and nationwide chain stores as its recognition improved along with the expansion of its installation track record. In FY2025 (ended December 2025), segment sales reached ¥1,515 million, up 110.5% year on year, establishing it as a third pillar of earnings following the detached housing and building segments.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive periods, rising from ¥23,903 million in FY2021 to ¥33,671 million in FY2025. However, operating margin has continued to decline after peaking at 10.2% in FY2023, falling to 8.5% in FY2024 and 8.2% in FY2025. In the cumulative first quarter of FY2026 (ending December 2026), revenue was ¥7,710 million (up 2.8% year on year) and operating profit was ¥543 million (up 3.3% year on year), securing both revenue and profit growth that exceeded plan. However, an increase in interest expense associated with rising interest rates and a sharp increase in amortization of long-term prepaid expenses (from ¥6 million in the same period of the prior year to ¥37 million) pushed up non-operating expenses, causing ordinary profit and net profit to decline year on year. The full-year forecast remains unchanged at revenue of ¥37,000 million (up 9.9% year on year) and operating profit of ¥2,900 million (up 4.5% year on year). The continued increase in selling, general and administrative expenses (from ¥1,108 million in the same period of the prior year to ¥1,252 million) remains a challenge for margin improvement.
Growth Strategy
A three-pillar strategy of establishing waterproofing as a third earnings pillar, expanding into the non-residential sector, and strengthening shareholder returns.
Differentiation has been strengthened through the combination of "Marutto Aqua Foam" (introduced in July 2025), which offers optimal insulation plans tailored to each house, together with airtightness measurement services. In Q1 of FY2026 (ending December 2026), the number of houses constructed increased 3.0% year on year and construction unit prices rose, resulting in detached housing segment sales of ¥3,907 million (up 6.5% year on year).
The company has steadily secured projects such as data centers, commercial facilities, and high-rise apartment buildings. Leveraging the expertise of the Building Construction Division and the Construction Management Department, it is promoting high-precision proposals to handle additional work and specification changes. Full-scale construction of large projects is expected to gain momentum from the second half of FY2026 through 2027 and beyond, and the second-half-weighted earnings structure is expected to continue.
Through composite waterproofing solutions centered on the "FUKUGEN Method," confirmed orders for nationally important facilities have triggered a succession of inquiries for similar facilities and plant renovation projects. Sales in Q1 of FY2026 (ending December 2026) surged to ¥212 million (up 33.4% year on year), and the segment is growing into the company's third earnings pillar.
Through direct transactions with multiple overseas suppliers and a nationwide inventory network, the company has maintained a stable supply even amid concerns over urethane raw material supply disruptions stemming from the situation in the Middle East. Against a backdrop of supply disruptions among competitors, inquiries regarding changes of designated contractors and specification changes have surged, and adoption of the Aqua Foam series is also expanding in the renovation apartment segment.
Under the progressive dividend policy introduced in February 2024, the annual dividend forecast for FY2026 (ending December 2026) is maintained at ¥35 per share (unchanged from the previous fiscal year). Under the medium-term management plan "3 Pillars of Stability" (final year FY2026), the company targets net sales of ¥37,000 million and ordinary income of ¥2,910 million, and has been newly selected as a constituent of the JPX-Nikkei Mid and Small Cap Index for fiscal 2025.
Last updated: July 17, 2026