NIHON HOUSE HOLDINGS CO., LTD.
1873・Prime Market・Construction
Business
Nihon House Holdings Co., Ltd. is a company listed on the Tokyo Stock Exchange Prime Market, founded in 1969. Its core business is the contract construction of high-quality, high-performance custom-built houses using domestic cypress (hinoki) for pillars, foundations, and interior materials, with the housing business accounting for approximately 88% of net sales. The company operates in three segments: housing, hotel and leisure facility operations (hotel business), and electricity sales from solar power generation (other business). Under a group structure including four consolidated subsidiaries, the company handles everything from the manufacturing of housing components to construction supervision, sales, and after-sales service in an integrated manner. Its main customers are individual homeowners seeking high-quality housing, and it is characterized by maintaining long-term customer relationships through a 60-year structural frame warranty and a home doctor system.
Business Model
In the housing business, the company takes orders for construction work from customers, procures housing materials from group subsidiaries, and has designated subcontractors carry out construction and supervision before delivering the completed homes. Long-term customer relationships are maintained through a 60-year structural frame warranty and the Home Doctor System (courtesy visits), enabling the company to continuously capture renovation demand. The hotel business is a lease/operation model in which subsidiaries manage and operate company-owned facilities. The solar power generation business, with its fixed-cost cost structure, is a stable earnings source boasting a high operating margin of 77.1%.
Company Strengths
Uses domestic hinoki (Japanese cypress) for pillars, foundations, and interior materials, with three core pillars: seismic resistance through the new wooden Strong construction method, zero-energy quality through high insulation and airtightness, and comfort quality including a 24-hour call center. The company has also received external recognition for design and quality, including the Good Design Award and Kids Design Award in fiscal 2024.
The operating margin of the housing business for FY2025 (ended April 2025) was 11.4% (up 3.0 percentage points from 8.4% in the same period of the previous year). Even as net sales declined year on year, operating profit increased from ¥29,340 million to ¥35,100 million through cost reductions and expense savings, demonstrating strong cost management capabilities.
The equity ratio as of the end of FY2025 (ended April 2025) was 51.1% (up 2.8 percentage points from the end of the previous fiscal year). Cash flow from operating activities improved substantially to ¥3,450 million, from ¥-1,403 million in the previous fiscal year. The debt repayment period also shortened from 8.6 years to 3.0 years, and the interest coverage ratio reached 19.3x.
ENVALITH's Perspective
Performance Trend
Consolidated results for FY2026 (ending April 2026) (May 2025–April 2026) were: net sales of ¥29,618 million (down 15.3% year on year), operating profit of ¥2,380 million (up 1.9%), ordinary profit of ¥2,152 million (up 4.6%), and profit attributable to owners of parent of ¥1,340 million (up 18.1%). The decline in sales was mainly due to a decrease in the opening order backlog in the housing business, but profit increased thanks to reductions in cost of sales and SG&A expenses. The operating margin improved to 8.0% (from 6.7% in the previous period). In terms of the external environment, new housing starts (owner-occupied) continued to fall below the previous year's level, while the hotel business saw sales rise 5.3% on the back of increasing inbound demand. For FY2027 (ending April 2027), the company forecasts net sales of ¥34,940 million (up 18.0% year on year) and operating profit of ¥2,640 million (up 10.9%), anticipating a recovery in sales supported by an accumulating order backlog. Looking at the trend over the past five periods, sales have continued to contract since peaking at ¥42,778 million in FY2022 (ended October 2022), although the profit margin has been on an improving trend.
Growth Strategy
In the final year of its medium-term plan, the company aims to improve profitability through the 'Hinoki Hyakunen Jutaku' housing product and the hotel and trunk room businesses
The company positions its new product 'Nihon House Hinoki Hyakunen Jutaku' (Hinoki Hundred-Year House), launched in February 2026, as its flagship offering, enhancing customer appeal through three concepts: 'Hinoki (cypress) and structural quality,' 'high thermal insulation and airtightness zero-energy quality,' and 'long-term warranty comfort quality.' The company aims to expand orders, improve contract conversion rates, and enhance customer satisfaction to drive the recovery of housing business revenue.
The company continuously captures renovation demand from existing customers by leveraging its Home Doctor System (thank-you visits) and 60-year structural warranty. Order intake in the housing business recovered to ¥26,362 million (up 3.2% year on year) in FY2026 (ended April 2026), and the capture of renovation demand appears to be contributing to this increase in orders.
The company is enhancing its ability to attract customers through strengthened sales efforts targeting corporations and agents, expanded information dissemination via social media, and promotion of the hotel membership business. In FY2026 (ended April 2026), revenue rose to ¥4,144 million (up 5.3% year on year) due to improved room occupancy rates, but the business posted an operating loss of ¥373 million and has not yet turned profitable.
The company collaborates with Area Link Co., Ltd., which operates 'Hello Storage,' one of Japan's largest rental trunk room (storage) networks, and had a total of 17 locations in operation as of the end of FY2026 (ended April 2026). It is working to improve occupancy rates at existing locations and expand its revenue base, aiming to develop this business into a third revenue pillar following housing and hotels.
FY2027 (ending April 2027) is the final year of the medium-term management plan. The full-year earnings forecast calls for revenue of ¥34,940 million, operating profit of ¥2,640 million, ordinary profit of ¥2,330 million, and net income attributable to owners of the parent of ¥1,370 million. Against the plan's targets (group revenue of ¥37.0 billion and operating profit of ¥2.9 billion), revenue remains below the target level, but profit has been accumulating steadily.
Last updated: July 17, 2026