SEKISUI CHEMICAL CO.,LTD.
4204・Prime Market・Chemicals
Business
Sekisui Chemical Co., Ltd., founded in 1947, is a comprehensive plastics manufacturer that currently operates four business segments: Housing Business (steel-frame and wood-based unit housing, remodeling, residential), Environment & Living Infrastructure Business (social infrastructure materials such as pipes, pipe rehabilitation, and synthetic wood), High Performance Plastics Business (semiconductor materials, interlayer film for laminated glass, aircraft composite materials, etc.), and Medical Business (clinical diagnostic reagents, pharmaceutical APIs). The company has 168 consolidated subsidiaries and 13 affiliated companies both in Japan and overseas, with net sales of ¥1,309,281 million. Its major customers span a wide range, including home buyers, construction companies, semiconductor manufacturers, automakers, and medical institutions, and it operates its business with "Creating Infrastructure for Housing and Society" and "Chemical Solutions" as its two core pillars.
Business Model
In the Housing Business, factory-produced units are delivered through the company's own sales and construction network, generating recurring revenue after completion through remodeling, rental management, and real estate services. The Environment & Living Infrastructure Business provides an integrated offering from pipe material manufacturing to pipeline rehabilitation methods, capturing demand for renewal of aging infrastructure. The High Performance Plastics Business leverages proprietary materials and processing technologies to sell high-value-added products globally for semiconductor, automotive, and aircraft applications. The Medical Business provides diagnostic reagents, equipment, and APIs in an integrated manner, securing stable revenue through ongoing transactions with medical institutions. The diversified structure of these four segments mitigates the risk of economic fluctuations.
Company Strengths
High Performance Plastics reported net sales of ¥456,575 million and operating income of ¥59,325 million (margin of approximately 13%). The business has established a four-region global sales structure—North America ¥118,076 million, Europe ¥81,050 million, China ¥76,026 million, and Asia ¥52,403 million—for proprietary materials such as semiconductor microparticles, interlayer film for laminated glass, and aircraft CFRP composites. This combination of technology and sales channels, which competitors find difficult to replicate in the short term, underpins the earnings base.
Operating income for the Environment & Living Infrastructure Business reached ¥23,247 million, marking a record high for the fourth consecutive period. In addition to thorough domestic spread management, the company's proprietary product and construction method portfolio—including expanded adoption of synthetic wood (FFU) sleepers in Europe, larger-diameter and overseas expansion of the SPR pipe rehabilitation method, and increased adoption of fire-resistant and non-combustible materials—is driving sustained earnings improvement.
The Housing Business posted net sales of ¥535,944 million and operating income of ¥37,150 million (up 17.9% year on year). Despite a decline in the number of units, the shift in mix toward multi-family housing and higher-priced detached houses raised the average unit price. Remodeling orders reached 105% of the previous period's level, and the number of managed rental units continued to increase steadily. Large-scale remodeling orders originating from regular inspections, together with expansion of resale of purchased properties, are contributing to margin improvement through a recurring revenue model generated after completion of construction.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥1,157,945 million in FY2022 (ended March 2022) to ¥1,309,281 million in FY2026 (ending March 2026), marking a new record high. Operating income, which peaked at ¥107,951 million in FY2025 (ended March 2025), declined slightly to ¥106,477 million in FY2026 (ending March 2026) (down 1.4%). While a slowdown in EV market growth, lower demand for priority infectious disease testing kits in the US, and weak market conditions in China acted as headwinds, this was offset by higher per-unit prices in Housing, maintained spreads in Environment & Living Infrastructure, and capture of semiconductor-related demand in High Performance Plastics. Ordinary income reached a new record high of ¥117,215 million, supported by a contribution of ¥4,749 million in foreign exchange gains. Net income for the period decreased to ¥75,174 million (down 8.2%), impacted by impairment losses of ¥23,302 million (an increase of ¥20,514 million year on year). Operating cash flow decreased significantly to ¥78,301 million (from ¥119,231 million in the previous fiscal year), due to an increase in inventories and a decrease in trade payables, among other factors.
Growth Strategy
Under Vision 2030 and the new mid-term management plan, the company aims to double its business scale through expanded sales of high-value-added products, creation of new businesses, and strengthened ESG management
Promoting acquisition of new customers and new applications for semiconductor and display materials, expanded sales of interlayer film for head-up displays, and development of new fields such as aircraft and drones. For FY2027 (ending March 2027), the company plans record-high operating income of ¥64,500 million (+8.7%). Increases in tangible and intangible fixed assets reached ¥32,277 million in FY2026 (ending March 2026), reflecting continued aggressive investment.
Promoting an increase in per-unit prices through a shift in composition toward multi-family housing and high-priced detached houses, strengthening the product menu centered on insulation remodeling and expanding external sales orders (next plan: order volume at 105% of the previous period), and expanding the scale of the Residential Business through an increase in the number of managed rental units and expansion of buy-and-resell operations. For FY2027 (ending March 2027), the company plans orders at 102% of the previous period in units and 103% in value.
Promoting expanded adoption of synthetic wood (FFU) railway sleepers in Europe and expansion into the US market, capturing domestic demand for renewal of aging pipeline infrastructure and expanding overseas orders for pipe renewal, and promoting expanded sales of new CPVC resin products and expansion of sales areas. The company aims to achieve record profits for a fifth consecutive period by offsetting increased fixed costs from human capital investment and other factors through higher overseas sales and securing spreads.
Established one-meter-wide manufacturing technology and metal roof installation specifications in March 2026, beginning commercialization. Top priority is placed on expanding supply capacity through the launch of a 100MW production line in fiscal 2027. Promoting market development for locations where installation of conventional solar cells is difficult, leveraging the lightweight and flexible characteristics of the product.
Having completed the final year of the mid-term management plan "Drive2.0" (FY2024 (ending March 2024) to FY2026 (ending March 2026)), the company plans to announce a new mid-term management plan in May 2026. As Phase 3 of the long-term vision "Vision 2030," the company will continue the three pillars of strategic creation, strengthening existing businesses, and strengthening the ESG management foundation, aiming to double its business scale by 2030. As part of governance enhancement, the company has also implemented an organizational change separating Company Presidents from the Board of Directors so that they can focus on execution.
Last updated: July 19, 2026