ENVALITH
株式会社 土屋ホールディングス logo

TSUCHIYA HOLDINGS CO., LTD.

1840・Standard Market・Construction

Official website
株式会社 土屋ホールディングス logo
TSUCHIYA HOLDINGS CO., LTD.1840

Business

Tsuchiya Holdings Co., Ltd. is a holding company for a housing and real estate group originating in Hokkaido, founded in 1976. Through its four consolidated subsidiaries, the group operates in four segments: construction and sale of custom-built and proposal-based homes (Housing business), renovation work (Renovation business), brokerage of condominium sales, used homes, and land transactions (Real Estate business), and real estate leasing and renewable energy power sales (Leasing business). Its main business area is Hokkaido (centered on Sapporo), with expansion into the Tohoku area (Sendai) currently underway. The company's strength lies in high-insulation, high-airtightness, and high-durability housing technology developed in a region of heavy snowfall and cold climate, and it has upheld the promotion of energy-efficient and welfare-oriented housing as its mission since its founding. In March 2025, the company entered into a capital and business alliance with Sekisui House, Ltd., marking the start of a new growth phase.

Business Model

The Housing business (construction and sale of custom-order and proposal-based homes) accounts for approximately 59% of net sales, while the Real Estate business (condominium sales and used home brokerage) contributes approximately 29%. The Reform business (approximately 13%) captures recurring demand by leveraging the existing customer base, and the Leasing business (approximately 2%) provides stable income from owned real estate and sales of electricity generated from renewable energy sources. The Housing and Reform businesses operate on a contract-based model that builds up order backlog, while the Real Estate business adopts an inventory-turnover sales model. Across the group as a whole, the company covers all stages of housing-related living, from home acquisition to renovation, sale/purchase, and leasing.

Company Strengths

Since its founding, the company has continuously developed and offered highly insulated, airtight, and durable housing suited to Hokkaido's snowy, cold-climate environment, winning the Minister of Construction Award in 1984 and the Minister of Economy, Trade and Industry Award (ZEB/ZEH category) in 2022. It also won the Good Design Award consecutively in 2023 and 2024, receiving objective recognition of its technical and product capabilities from external institutions.

In January 2025, the company formed a partnership in the SI business with Sekisui House, followed by a capital and business alliance agreement in March of the same year. Full-scale rollout of the DJ (Direct Joint) construction method, which combines Sekisui House's seismic design and structural framework technology with Tsuchiya HD's insulation and airtightness technology, has begun. The alliance with a major home builder is expected to strengthen brand power, product competitiveness, and R&D capabilities.

As of the end of October 2025, the order backlog in the housing business stood at ¥7,260,585 thousand (up 109.0% year on year), providing high visibility into future sales. The fact that the order backlog has continued to accumulate despite prolonged review periods resulting from revisions to the Building Standards Act indicates solid underlying customer demand.

ENVALITH's Perspective

Operating loss for the interim period of FY2026 (ending March 2026) [note: source text says October 2026 fiscal year end] came to ¥1,190 million, a deterioration of ¥367 million from ¥823 million in the same period a year earlier. While revenue increased to ¥14,018 million (up 10.9% year on year), the cost of sales ratio rose (from 74.7% in the same period a year earlier to 79.9% in the current interim period), causing gross profit to fall to ¥2,823 million (down 11.8% year on year), which was the main factor. This reflected a decline in the number of detached houses delivered in the housing business, limited profit contribution from non-residential properties, and a decrease in large-scale projects in the renovation business. As external factors, rising construction costs and increases in the prices of petrochemical products stemming from the situation in the Middle East have worsened the materials procurement environment, becoming a barrier to margin improvement.

The full-year earnings forecast of revenue of ¥35,000 million and operating profit of ¥400 million (a turnaround to profit from the previous fiscal year) remains unchanged, but with an operating loss of ¥1,190 million already recorded at the interim stage, the company needs to generate operating profit of at least ¥1,590 million in the second half. This would need to substantially exceed the actual second-half performance of the previous fiscal year (full-year operating loss of ¥123 million minus interim operating loss of ¥823 million equals second-half operating profit of ¥700 million). While the buildup in the order backlog provides grounds for a second-half recovery, lengthening negotiation periods and cautious attitudes toward home purchases are increasing uncertainty regarding the number of units to be delivered.

At the end of the interim period of FY2026 (ending March 2026), total assets stood at ¥25,881 million, net assets at ¥12,140 million, and the equity ratio at 46.9% (versus 48.3% at the end of the previous fiscal year). Retained earnings fell into negative territory, from ¥1,126 million (end of previous fiscal year) to negative ¥28 million (end of interim period), and net assets decreased by ¥901 million from the end of the previous fiscal year. Cash and deposits also declined from ¥5,331 million (end of previous fiscal year) to ¥3,395 million (end of interim period), and short-term borrowings of ¥2,500 million were newly incurred. There is no note regarding going concern assumptions, but the trend of consecutive interim-period losses and declining cash requires continued monitoring.

Growth Strategy

The company is pursuing a revival as Hokkaido's No.1 and the establishment of a second base in Tohoku, centered on its alliance with Sekisui House.

The company aims to recover its market share in the Hokkaido market by pursuing technology integration, brand strengthening, and product enhancement, centered on its joint business (SI business) with Sekisui House. In the interim period, the order backlog for the housing business has accumulated to ¥8,193 million (¥10,088 million including non-housing), and the foundation for sales recognition in the second half is gradually being established.

The company is advancing the establishment of a business foundation in the Tohoku area, centered on Sendai. In January 2026, it opened a model house under SI-COLLABORATION in Koriyama City, Fukushima Prefecture, marking concrete progress toward raising brand recognition and securing orders in the Tohoku area.

In response to growing demand for reduced housing acquisition burdens amid rising home prices, the company is shifting toward compact housing. At the same time, it is responding to demand for high-performance housing driven by mandatory energy-efficiency standards and mandatory structural calculations, aiming to maintain and improve unit prices through product offerings that emphasize insulation, earthquake resistance, and durability.

The company's full-year earnings forecast for FY2026 (ending October 2026) calls for net sales of ¥35,000 million, operating profit of ¥400 million, and net income of ¥260 million. As of the interim period, an operating loss of ¥1,190 million was recorded, and the company aims for a significant earnings recovery in the second half through progress in delivering the order backlog and a seasonal increase in completed construction. There has been no revision to the earnings forecast at this time.

Last updated: July 17, 2026