ENVALITH
株式会社エンビプロ・ホールディングス logo

ENVIPRO HOLDINGS Inc.

5698・Standard Market・Iron & Steel

Official website
株式会社エンビプロ・ホールディングス logo
ENVIPRO HOLDINGS Inc.5698

Business

Envipro Holdings is a pure holding company tracing its roots to a steel scrap wholesaler founded in 1950, comprising 11 consolidated subsidiaries and 2 equity-method affiliates. In its core Resource Recycling Business, the company collects and processes metal scrap and industrial waste generated from factories, demolition sites, and other sources, producing recycled resources such as steel scrap, non-ferrous metals, plastics, and rubber. The Global Trading Business handles domestic and overseas sales and logistics outsourcing, while the Lithium-ion Battery Recycling Business is growing on the back of EV adoption. Customers include major electric-arc-furnace and blast-furnace manufacturers, as well as non-ferrous trading companies and smelters, and the company has overseas bases in Vietnam, the UK, and the Netherlands. In September 2025, the company transitioned to the Standard Market of the Tokyo Stock Exchange.

Business Model

The company's core model is a vertically integrated one in which recycled resources are produced through waste collection/transport and intermediate processing (shearing, crushing, sorting, etc.) and then sold domestically and internationally through the Global Trading Business. In this structure, the Resource Recycling Business handles raw material procurement and processing, while the Global Trading Business builds up revenue through sales and Logistics Outsourcing Services. Since performance is affected by sales price fluctuations linked to metal market conditions, the company seeks to stabilize earnings through businesses with lower sensitivity to market prices, such as Plastic-to-Fuel & Recycling, rubber chip sales, and Logistics Outsourcing Services.

Company Strengths

The company possesses advanced physical sorting equipment, processes and know-how, a distribution network spanning multiple domestic locations and overseas, and integrated services from dismantling through Resource Recycling, ensuring traceability across the entire venous supply chain. It maintains a stable customer base including major electric furnace and blast furnace manufacturers and non-ferrous metal trading companies.

Centered on VOLTA, established in 2018, the company achieved increased revenue and profit in FY2025 (ending June 2025) with net sales of ¥1,693 million and segment profit of ¥223 million, driven by full-scale operation of the Ibaraki plant and increased contract processing volume, despite headwinds from rare metal prices remaining at low levels compared to the previous period. Production volume expanded 35.5% year on year.

Operating cash flow for FY2025 (ending June 2025) was ¥3,469 million (up from ¥2,940 million in the previous period), supported by a ¥1,717 million reduction in inventories and depreciation expenses of ¥1,369 million. During the period, the company conducted share buybacks of ¥788 million while maintaining net assets of ¥17,309 million, and reduced total liabilities by ¥2,758 million year on year.

ENVALITH's Perspective

For the nine months ended FY2026 Q3 (June 2026 fiscal year), net sales came to ¥32,657 million (down 13.6% year on year), but despite the revenue decline, operating profit rose to ¥2,163 million (up 152.1% year on year) and ordinary profit reached ¥2,422 million (up 144.4% year on year), marking a significant profit increase. A nominal decline in revenue caused by changes in the transaction structure within the Global Trading Business is occurring in parallel with spread improvement and an increase in the proportion of high-value-added products driven by structural reforms, indicating that profitability quality is improving even as revenue scale contracts. Against the full-year earnings forecast (net sales of ¥43,000 million, operating profit of ¥2,300 million), the nine-month cumulative operating profit already reached 94% of the full-year target, drawing attention to the potential for an upward revision to the full-year forecast.

On the external factor side, the historic high price levels of copper, gold, and silver, along with the turnaround to rising prices for lithium and cobalt, gave a substantial boost to this period's profit growth. On the other hand, as seen in the impact on Global Trading Business cargo bound for Dubai from Iran's de facto blockade of the Strait of Hormuz, the structure in which geopolitical risk directly spills over into business performance remains unchanged. Steel scrap prices are being pressured in the Asian market by increased exports of low-priced semi-finished steel products from China amid sluggish domestic steel demand, and while the continuation of a weak yen has provided some support, there remains an inherent risk that profitability could deteriorate rapidly should exchange rates or commodity markets reverse.

Since the withdrawal of the medium-term management plan, the absence of disclosed quantitative mid- to long-term targets continues to make evaluation difficult for investors. That said, in the nine months ended FY2026 Q3, selling, general and administrative expenses were significantly reduced to ¥4,888 million (down 14.2% year on year), and the gross profit margin improved to 17.3% (versus 16.6% in the same period of the previous year), showing that the results of structural reform have begun to appear concretely in the financial figures. Financial soundness has also been maintained, with an equity ratio of 54.4% and net assets of ¥18,410 million, and the key point for future evaluation will be whether the company can continue to balance aggressive investment in the Lithium-ion Battery Recycling Business with financial discipline.

Growth Strategy

Advancing the three key strategic Circular Economy businesses and building a business structure less susceptible to fluctuations in resource prices

Continuously deepening proprietary physical sorting technology to strengthen the recovery and sale of high value-added non-ferrous metals and precious metals (gold/silver slag, etc.). Advancing key strategic businesses such as Gold/Silver Slag Recovery from Incineration Ash, while also making progress in securing raw materials through enhanced sales efforts targeting major manufacturers. Achieved segment profit of ¥1,736 million (up 90.4% year on year) for the cumulative nine months of FY2026 (ending June 2026), with results becoming increasingly visible.

Although the application of revenue recognition standards accompanying changes in transaction structure resulted in a nominal significant decline in revenue, profitability improved substantially through the development of new sales channels and products as well as spread (margin) improvement. Achieved a substantial increase in segment profit of ¥487 million (up 153.4% year on year) for the cumulative nine months of FY2026 (ending June 2026). In the Logistics Outsourcing Services, appropriate pricing continues to be provided through supply-demand balance management.

Expanding handling volume centered on contract processing projects, while continuing active capital investment aimed at increasing production capacity centered on the Ibaraki plant. Achieved rapid growth with net sales of ¥1,773 million (up 46.2% year on year) and segment profit of ¥491 million (up 210.8% year on year) for the cumulative nine months of FY2026 (ending June 2026). The company aims to expand domestic market share by capturing the structural increase in the volume of used LIBs discharged in line with EV adoption.

Promoting a shift toward a business structure with reduced sensitivity to market conditions by diversifying the methods of value provision. The results of structural reforms, including SG&A reduction (¥4,888 million for the cumulative nine months of FY2026 (ending June 2026), down 14.2% year on year) and optimization of transaction terms, are beginning to be reflected in financial figures, with qualitative improvement in earnings underway.

Last updated: July 17, 2026