Sankyo Tateyama,Inc.

Business Details

Manufactures and sells Building Materials for Commercial Buildings (sashes, curtain walls, etc. for office buildings and multi-family housing), Residential Building Materials (entrance doors, windows, handrails, etc.), and Exterior Products (carports, fences, etc.). Its strength lies in a nationwide distribution and sales system through agents and distributors, covering a wide range from new construction to renovation and remodeling. As the largest segment, accounting for approximately 47% of consolidated net sales, operating profit improved significantly due to cost reductions and price revisions driven by revenue structure reform, even as sales declined.

Recent Overview

Net sales declined, but revenue structure reform drove a large 352.2% increase in operating profit

Net sales for the Building Materials Business in FY2026 (ending May 2026) were ¥167,537 million (down 6.2% year on year). This was affected by a decline following a rush in demand ahead of the revised Building Standards Act and by postponement of construction starts amid soaring material costs. On the other hand, as a result of promoting cost reductions through revenue structure reform and optimizing sales prices, including price revisions, operating profit improved significantly to ¥1,069 million (up 352.2% year on year). Note that an impairment loss of ¥16,219 million on fixed assets related to the Building Materials Business, resulting from the surge in aluminum ingot prices due to the impact of the situation in the Middle East, was recorded as an extraordinary loss, and segment assets decreased to ¥123,314 million (down 9.6% year on year).

Key Products

Growth Drivers

• Expanded sales of energy-saving products such as the highly insulated slim window "STINA"
• Steady renovation market trends supported by subsidy measures such as the "Housing Energy Conservation 2026 Campaign"
• Recovery from the prior-year decline (rebound effect) in new housing starts in FY2026
• Continued promotion of cost reductions and sales price optimization through revenue structure reform
• Expansion of the renovation/remodeling market (utilizing building renovation business and housing renovation subsidies)

Risks

• Risk of weakening consumer sentiment and soft new housing starts due to soaring housing prices
• Aluminum ingot prices remaining elevated and supply chain disruption amid rising tensions in the Middle East
• Profit pressure from rising logistics costs, labor costs, and various material costs
• Risk of additional impairment of fixed assets related to the Building Materials Business (depending on aluminum ingot price trends)
• Temporary deterioration in profit and loss due to business structure reform expenses (¥3,342 million recorded as extraordinary loss in FY2026 (ending May 2026))
• Structural contraction of the exterior products market