ENVALITH
日本ヒューム株式会社 logo

Nippon Hume Corporation

5262・Prime Market・Glass & Ceramics Products

Official website
日本ヒューム株式会社 logo
Nippon Hume Corporation5262

Business

Nippon Hume Corporation, founded in 1925 and listed on the Tokyo Stock Exchange Prime Market, is a comprehensive concrete manufacturer. In its core Foundation Business, the company manufactures and sells Concrete Piles and carries out Pile Driving Construction, while in its Sewerage-Related Business it provides integrated services from the manufacture and sale of Hume Pipes and segments to Pipe Rehabilitation and Seismic Retrofitting Construction. The Solar Power Generation & Real Estate Business generates stable cash flow, and the group as a whole comprises 12 consolidated subsidiaries and 6 affiliated companies. Its main customers are public institutions, general contractors, and local governments, and its business is built on the structural demand arising from the renewal, seismic retrofitting, and resilience enhancement of aging infrastructure. Consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥40,240 million.

Business Model

Starting from the manufacturing of products such as Concrete Pile and Hume Pipe, the company has a vertically integrated earnings structure that completes design, construction, inspection, and maintenance within the group. In addition to revenue from product sales, the company combines construction contracting, pipe rehabilitation construction, and infrastructure inspection services to achieve higher unit prices and secure customers. The Solar Power Generation & Real Estate Business (operating margin of 58.7%) supplies stable cash flow, forming a structure that supports growth investment.

Company Strengths

The company possesses proprietary boring methods such as NEW-STJⅡ Method and CP-X Method®, along with the ICT construction management system "Pile-ViMSys®", giving it strong capability to handle difficult on-site conditions. Through the February 2026 acquisition of Manac Co., Ltd. as a subsidiary, the company has established an integrated system covering manufacturing through construction in the Chubu region. In the sewerage field as well, it has built a consistent framework covering everything from surveys and diagnostics to rehabilitation construction.

In FY2026 (ending March 2026), the Sewerage-Related Business achieved significant growth in both revenue and profit, with net sales of ¥14,356 million (up 11.9% year on year) and operating income of ¥2,608 million (up 34.8% year on year). The company continues to differentiate its products and services, including NETIS registration and receipt of the Minister of the Environment Award for its low-carbon concrete "e-CON (Low-Carbon High-Performance Concrete)", and the incorporation of drone inspection technology through a capital and business alliance with Liberaware Inc.

In FY2026 (ending March 2026), orders received in the Foundation Business surged to ¥34,233 million (up 60.8% year on year), and the order backlog jumped to ¥12,482 million (up 390.3% year on year). The company is capturing a wide range of projects related to urban redevelopment, logistics facilities, data centers, and national resilience initiatives, with its ability to propose multiple construction methods contributing to order growth. This order backlog serves as a leading indicator that will help secure stable revenue and profit going forward.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥40,239 million (up 8.6% year on year) and operating profit reached ¥2,523 million (up 24.8% year on year), marking record highs for the second consecutive period. The 5-period CAGR of net sales was approximately 8%, and operating profit has more than doubled from its trough of ¥1,236 million in FY2023 (ended March 2023). The Sewerage-Related Business functioned as a growth driver, and the stability of the business portfolio was confirmed, absorbing the decline from the reversal of large-scale projects in the Foundation Business. As an external factor, the resilient trend in public investment provided a tailwind.

Cash flow from operating activities in FY2026 (ending March 2026) was ¥-3,476 million (a significant deterioration from ¥897 million in the prior period). The main cause was a ¥4,597 million increase in trade receivables and contract assets, reflecting the expansion of working capital accompanying the sales increase. Aggressive investment continued in investing activities as well, with ¥2,202 million spent on acquisition of fixed assets and ¥1,689 million on acquisition of shares of subsidiaries. In financing activities, funds were secured through proceeds from the sale of treasury shares of ¥5,794 million, but structural improvement in free cash flow remains a challenge going forward.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥45,500 million (up 13.1% year on year), operating profit of ¥2,900 million (up 14.9% year on year), and net income of ¥3,400 million (up 0.5% year on year). While net sales and operating profit are expected to grow strongly, net income is projected to be nearly flat, reflecting an increase in corporate tax burden and the disappearance of extraordinary gains. The new medium-term plan positions the Sewerage-Related Business as the core growth driver, but uncertainties in the external environment—such as geopolitical risk, sustained high material prices, and labor shortages—remain variables affecting achievement of the plan. The dividend payout ratio is expected to rise from 33.1% in FY2026 (ending March 2026) to a forecast 39.0% in FY2027 (ending March 2027).

Growth Strategy

Under the new medium-term management plan "26-30 Plan/NEXT100," the company is building an integrated system for products, construction, and inspection with the Sewerage-Related Business positioned as the core growth driver.

Strengthening the integrated provision system spanning Hume Pipe manufacturing and sales, pipe rehabilitation construction, and drone-based inspection and diagnosis (through a capital and business alliance with Liberaware). Aiming to expand adoption in public works projects through NETIS registration and the Minister of the Environment Award received by the low-carbon "e-CON." Achieved operating profit of ¥2,608 million (+34.8% year on year) in FY2026 (ending March 2026), functioning as the group's largest growth driver.

Through the consolidation of Manac Co., Ltd. (in the fourth quarter of FY2026 (ending March 2026)), an integrated manufacturing-to-construction system was established in the Chubu region, resolving previous constraints on growth. Promoting technological differentiation through expanded use of the ICT construction management system "Pile-ViMSys" and development of Japan's highest-strength-class ultra-high-strength Concrete Pile. Accumulating a track record for handling large-scale private-sector projects, with shipments beginning for projects related to the Osaka IR (integrated resort).

Implemented the sale of treasury shares (proceeds of ¥5,794 million) with the aim of accelerating growth investment and improving capital efficiency. The policy is to use the funds raised as a source for M&A and investment in growth areas. While maintaining sound finances with an equity ratio of 75.7%, the company aims to balance this with shareholder returns targeting a total payout ratio of 50% or more (FY2027 (ending March 2027) forecast dividend of ¥26 per share, payout ratio of 39.0%).

Formulated a five-year plan covering fiscal years 2026 to 2030 (announced on May 8, 2026). While positioning the Sewerage-Related Business as the core growth driver, the plan further advances the business portfolio through strengthening the competitiveness of the Foundation Business and expanding the precast business. Clarifies the shift from a product-supply model to an infrastructure management business model. For FY2027 (ending March 2027), net sales of ¥45,500 million and operating profit of ¥2,900 million are projected.

Last updated: July 19, 2026