ENVALITH
株式会社エーアンドエーマテリアル logo

A&A Material Corporation

5391・Standard Market・Glass & Ceramics Products

Official website
株式会社エーアンドエーマテリアル logo
A&A Material Corporation5391

Business

A&A Material Corporation is a company listed on the TSE Standard Market, formed in 2000 through the merger of Asano Slate, founded in 1914, and Asahi Asbestos Industry, founded in 1924. Centered on "building material production, decorative processing, and construction technology" and "technology to control heat, sound, and energy," the company comprises two core segments: the Construction & Building Materials Business (net sales of ¥23,067 million), which manufactures, sells, and installs non-combustible building materials, and the Industrial Products & Engineering Business (net sales of ¥22,575 million), which manufactures and sells industrial materials for ships, plants, and automobiles and undertakes thermal insulation and soundproofing construction work. Operating as a group with the parent company and 10 subsidiaries, it primarily serves industrial customers such as construction companies, shipbuilders, and automakers, providing products and construction services both domestically and overseas.

Business Model

In the Construction & Building Materials Business, the company manufactures non-combustible building materials such as calcium silicate board and decorative board in-house and through subsidiaries, generating revenue by combining material sales (¥17,988 million) with construction work such as steel frame fireproof coating (¥5,078 million). In the Industrial Products & Engineering Business, the company manufactures and purchases/sells marine heat insulation materials, friction materials, insulation materials, etc. (¥8,905 million), while also undertaking design and construction of thermal insulation, soundproofing, and heat insulation work (¥13,670 million). By combining group expansion through M&A with fund efficiency improvements through CMS, the company is expanding its business scale and revenue base.

Company Strengths

The company successively made Uniboard Co., Ltd. a subsidiary in October 2024 and Decor Co., Ltd. a subsidiary in April 2025, expanding material sales revenue in the Construction & Building Materials Business by 39.0% year on year to ¥17,988 million. Synergy creation such as logistics cost reduction and new product development is also progressing steadily, and a track record of using M&A as a growth engine has been accumulated.

The company holds a proprietary product lineup including Calcium Silicate Board "Hylak Funen®", Interior Non-Combustible Decorative Board "Stend®" / "Adec®" Series, Curved-Surface Construction Board "FG® Board", and Concrete-Look Interior Board "BEoNA®". It has also completed the development and commercialization of a cold insulation method for marine LNG fuel tanks, with a proven technology expected to achieve up to approximately 40% reduction in CO₂ emissions compared to conventional methods.

In the Construction & Building Materials Business, the company operates manufacturing (subsidiaries A&A Ibaraki Co., Ltd. and A&A Osaka Co., Ltd.), sales (the Company), and construction work (A&A Crest Co., Ltd.) in an integrated manner. In the Industrial Products & Engineering Business as well, the company has vertically integrated operations from manufacturing (Ask Technica Co., Ltd. and Asahi Silica Industry Co., Ltd.) to construction work (Ask Sanshin Engineering Co., Ltd. and Ask Okinawa Co., Ltd.), building a system for providing consistent, integrated services to customers.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue reached ¥45,700 million (up 5.2% year on year), achieving five consecutive years of revenue growth, but operating profit remained at ¥1,674 million (down 12.6% year on year), with the operating margin staying at a low 3.7%. In addition to soaring raw material and fuel prices, external factors such as increased labor costs and logistics costs are squeezing profits, and the pass-through of price revisions has not kept pace. Achieving the FY2027 (ending March 2027) operating profit forecast of ¥2,100 million (up 25.4% year on year) is premised on stabilization of the cost environment and the establishment of price revisions.

As a result of acquiring 2,150,000 shares of treasury stock (¥2,935 million) based on the resolution of the Board of Directors meeting on March 25, 2026, the equity ratio fell sharply from 45.7% at the end of the previous fiscal year to 39.5%. Interest-bearing debt also increased, with short-term borrowings of ¥5,432 million and long-term borrowings of ¥3,486 million, worsening the ratio of interest-bearing debt to cash flow to 6.1 years (from 3.6 years in the previous fiscal year). The fiscal year-end balance of cash and cash equivalents stood at an extremely low ¥186 million, and the balance between the continued M&A policy and financial soundness will be a key focus going forward.

In FY2026 (ending March 2026), a settlement payment of ¥2,070 million was made and the provision for loss on litigation was drawn down, resulting in a substantial decrease in the fiscal year-end balance from ¥2,097 million to ¥155 million. On the other hand, a new provision for loss on litigation of ¥128 million was recorded, and payments of ¥38 million for asbestos health damage compensation were also incurred. While the reduction in the provision balance is a positive financial development, asbestos-related litigation is ongoing, and it should be noted that the risk of future additional provisions has not been completely eliminated.

Growth Strategy

Three pillars of M&A, DX, and new business model based on Vision 2033 and the 2026 Medium-Term Management Plan

Continued promotion of strategic M&A as a key initiative of the "2026 Medium-Term Management Plan." Following the addition of Uniboard Co., Ltd. in FY2025 (ending March 2025), the company added Decor Co., Ltd. (acquisition cost ¥1,300 million) as a consolidated subsidiary in FY2026 (ending March 2026), marking two consecutive years of consolidated subsidiary additions and significantly expanding materials sales revenue in the Construction & Building Materials Business. Synergy creation such as logistics cost reduction and new product development is also progressing steadily.

Group-wide system integration was implemented, with operations commencing from April 2026. Through the development of DX infrastructure, the company aims to improve operational efficiency, strengthen competitiveness, and improve its earnings structure. As of the FY2026 (ending March 2026) financial results, the start of operations has been confirmed, and the focus going forward will be on verifying quantitative effects.

Aiming to improve profitability through expanded market penetration of high-value-added products (BEoNA®, FG® Board, etc.) and the spread of sales price revisions. Development of new markets (spec-in activities) for energy-saving materials and high-performance insulation materials in response to carbon neutrality is also ongoing. For FY2027 (ending March 2027), the company targets net sales of ¥52,600 million and operating profit of ¥2,100 million.

Last updated: July 19, 2026