SALA CORPORATION
2734・Prime Market・Retail Trade
Business
Sarah Corporation was founded in 1909 and established as a holding company in 2002, operating as a comprehensive service group centered on the Tokai region. Comprising 48 subsidiaries and 14 affiliated companies, its core business is the Energy & Solutions segment (revenue of ¥120,870 million), centered on city gas, LP gas, and electricity. It also operates the Engineering & Maintenance segment covering civil engineering, construction, and facility work (¥35,264 million), the Housing segment for custom-built homes and renovations (¥44,853 million), the Car Life Support segment for imported automobile sales (¥17,955 million), the Animal Health Care segment for veterinary pharmaceuticals (¥23,416 million), and the Property segment covering real estate and hotels (¥7,347 million). Consolidated revenue for FY2025 (ending November 2025) was ¥251,533 million. The company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange.
Business Model
The Energy & Solutions business accounts for approximately 48% of net sales, forming an earnings base in which stock-type revenue from the stable supply of city gas, LP gas, and electricity underpins overall performance. In addition, the Engineering & Maintenance business (order backlog of ¥23,544 million) and the Housing business (order backlog of ¥10,476 million) handle construction and installation work flow, while the Property business complements stable earnings through real estate leasing and hotel operations. Cost reductions in fundraising through group financing and the effective utilization of intra-group funds also support the earnings structure.
Company Strengths
Operating profit in the Energy & Solutions segment for FY2025 (ending November 2025) was ¥4,287 million (up 44.6% year on year). A combination of increased city gas sales volume, steady operation of the biomass power plant, and reduced selling, general and administrative expenses drove strong profit growth against net sales of ¥120,870 million.
The Engineering & Maintenance segment achieved operating profit of ¥3,454 million (operating margin of approximately 9.8%) against net sales of ¥35,264 million. Order intake rose 124.5% year on year to ¥37,124 million, and the order backlog stood at ¥23,544 million (112.1% of the prior period), providing high visibility into future sales.
Following the consolidation of Yasue Koumuten Co., Ltd. as a subsidiary in December 2024, net sales in the Housing segment expanded 25.9% year on year to ¥44,853 million. Order intake in the Housing segment surged 161.9% year on year to ¥30,407 million, and the order backlog jumped 170.5% year on year to ¥10,476 million.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years maintained a moderate growth trend, rising from ¥227,935 million in FY2021 to ¥251,533 million in FY2025, but in the first half of FY2026 (ending November 2026), revenue declined slightly by 1.2% year on year to ¥129,672 million. The main cause was a downward adjustment to city gas selling prices under the raw material cost adjustment system in the Energy & Solutions business, along with a decline in gas sales volume. On the profit side, a lower cost-of-sales ratio (73.8% in the current half, down from 75.0% in the same period last year) and reduced SG&A expenses contributed to a substantial improvement in the operating margin, from 4.5% to 5.7%. As an external factor, the recording of ¥793 million in derivative valuation gains boosted ordinary income. The full-year forecast has been revised upward to revenue of ¥260,000 million (up 3.4% year on year), operating income of ¥7,800 million (up 5.7%), ordinary income of ¥9,400 million (down 5.3%), and net income of ¥5,900 million (up 0.5%).
Growth Strategy
Under the 6th Medium-Term Management Plan, the company aims to establish 'SALA for Living / SALA for Business' and promote DX, targeting operating profit of ¥12,000 million by 2030
The company is advancing a synergy creation project with Yasue Koumuten. It has decided to reorganize its existing renovation business and establish SALA Reform Co., Ltd. as a new entity. The Housing Business turned profitable in the interim period (operating profit of ¥123 million), and the growth foundation for the stock housing business model is being put in place.
The company established a dedicated department internally and launched a total solutions proposal project combining the Energy & Solutions Business and the Engineering & Maintenance Business. It aims to strengthen proposals to corporate customers with needs for carbon neutrality and productivity improvement.
SALA Energy Co., Ltd. commenced operation of its New Core System (DX Platform) in June 2026. The company aims to fundamentally reform business processes through the use of digital technology and to deliver value-added services tailored to each individual customer. Intangible fixed assets (Others) increased from ¥5,815 million at the end of the previous fiscal year to ¥6,107 million, reflecting progress in system investment.
In March 2026, the company conducted a secondary offering of 5,930 thousand shares with eight major financial institutions as selling shareholders, aiming to diversify its shareholder base. It has decided to conduct a share buyback with an upper limit of 2,000 thousand shares and ¥3,000 million, which is currently in progress (treasury shares of ¥2,063 million as of the interim period-end). The annual dividend forecast was raised from ¥32 to ¥34 per share (the interim dividend of ¥16 has already been paid).
Last updated: July 17, 2026