Sekisui House, Ltd.
1928・Prime Market・Construction
Business
Sekisui House is a comprehensive housing company founded in 1960, operating ten business segments: detached houses, rental housing, construction and civil engineering, remodeling, real estate fee business, condominium (built-for-sale) housing, high-rise condominiums, urban redevelopment, international business, and exteriors. In Japan, it organically combines three business models—contracted construction, stock-type, and development-type—to cover the entire value chain from housing construction to management, distribution, and remodeling. Overseas, it operates in the United States, Australia, China, and other regions, with consolidated net sales reaching ¥4,197,922 million in FY2026 (ending January 2026). Its main customers range widely across individual homebuyers, rental housing owners, corporations, and public entities. It is a global group comprising 335 consolidated subsidiaries and 34 equity-method affiliates.
Business Model
Characterized by a three-layer structure combining a contract-based model (design and construction of detached houses and rental housing) to acquire new customers, a stock-type model (renovation and real estate fees) to accumulate long-term stable earnings, and a development-type model (condominium sales and urban redevelopment) to generate profit through asset turnover. The Real Estate Fee business (net sales of ¥588,507 million) handles subleasing, management, and brokerage of rental housing, with the accumulation of managed units forming a stable earnings base. The International business (net sales of ¥388,936 million) continues to grow strongly, centered on the United States, contributing to the diversification of the group's overall earnings.
Company Strengths
In FY2026 (ending January 2026), the ZEH ratio for detached housing reached 96%, and the ZEH housing unit order ratio for rental housing achieved 77%. As of FY2022 (ending January 2022), the new detached housing ZEH ratio was 92%, with a cumulative total of 69,163 units, maintaining an industry-leading level. This high environmental performance supports the expansion of sales of high-value-added products and the maintenance of price premiums.
The real estate fee business recorded net sales of ¥588,507 million and operating income of ¥50,480 million (operating margin of 8.6%). The number of rental housing units under management contract for the "Sha Maison" brand has steadily increased, maintaining high occupancy rates and rents. A favorable cycle has been established whereby properties built through the contracted construction business continue to generate stable recurring (stock-type) income.
The international business recorded net sales of ¥388,936 million and an operating margin of 12.9%. Through acquisitions such as Woodside Homes and Holt Group, the company expanded its U.S. business platform, and the order backlog for the international business in FY2022 (ending January 2022) reached ¥260,455 million (up 30.5% year on year). In FY2025 (ending January 2025), the group's scale expanded further through the acquisition of M.D.C. Holdings.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded steadily from ¥2,589,579 million (FY2022) to ¥4,197,922 million (FY2026). In Q1 of FY2027 (ending January 2027), revenue was ¥908,878 million (up 1.7% year on year), operating profit was ¥76,104 million (up 26.2%), ordinary profit was ¥72,495 million (up 54.9%), and profit attributable to owners of parent was ¥58,479 million (up 75.2%), representing a substantial increase in earnings. Concentrated delivery of high-margin development-type projects and recognition of foreign exchange gains (¥3,631 million) boosted profit. As an external factor, improvement in the foreign currency translation adjustment account due to the correction of yen depreciation (from ¥-54,304 million in the same period last year to ¥19,540 million this period) significantly improved comprehensive income. The full-year forecast calls for net profit of ¥218,000 million (down 6.1% year on year), a decline in earnings, with the timing skew of development-type deliveries and the recovery of international operations as key focal points for the full-year outcome.
Growth Strategy
Evolving into a global housing company through deepening of domestic ZEH and stock businesses combined with a One Company structure in the U.S.
Promoting the deepening of domestic operations by leveraging the group's comprehensive strengths. Strengthening the domestic earnings base through ZEH/ZEB adoption, reinforcement of the Sha Maison brand, expansion of stock-type businesses such as renovation and brokerage, and accelerated monetization of urban redevelopment operations. In Q1 FY2027 (ending January 2027), development-type and stock-type businesses achieved increases in both revenue and profit, reflecting the success of these initiatives.
From January 2026, U.S. operations transitioned to a One Company structure under SEKISUI HOUSE U.S., Inc., aiming to improve efficiency and accelerate growth through the integrated operation of single-family homes, community development, and rental development. In Q1 FY2027 (ending January 2027), U.S. single-family housing saw a decline in profit due to persistently high mortgage rates, while community development and rental development posted profit increases. An order backlog of ¥412,239 million (up 39.7% from the previous fiscal year-end) underpins future earnings.
Combining the "Grande Maison" brand's strategy of focusing on central areas of the four major metropolitan regions with the supply of pipeline properties to Sekisui House Reit, Inc., the company is enhancing the profitability and asset efficiency of its development-type businesses. In Q1 FY2027 (ending January 2027), the condominium business achieved an operating margin of 33.9% and the urban redevelopment business 27.0%, demonstrating progress toward higher profitability.
Centered on a 96% ZEH ratio for detached houses, an 87% ZEH ratio for rental housing units, and condominiums with all units built to ZEH specifications, the company is expanding environmental technologies across all business lines. It is also strengthening subsidy-utilizing renovation proposals and promoting ESG solution proposals to secure orders in the corporate and public sectors. Leveraging tailwinds from tightening regulations such as the revised Energy Conservation Act, the company continues to expand sales of high-value-added products.
Last updated: July 17, 2026