ERI HOLDINGS CO.,LTD.
6083・Standard Market・Services
Business
ERI Holdings is a holding company whose core businesses are building confirmation and inspection (as a designated confirmation and inspection body) under the Building Standards Act and housing performance evaluation (as a registered housing performance evaluation body) under the Housing Quality Assurance Act. The group is centered on Japan ERI Co., Ltd., which began operations in 2000 as Japan's first private-sector confirmation and inspection body designated by the Minister of Construction, and comprises a total of 16 companies including 15 consolidated subsidiaries. In addition to statutory building confirmation & inspection and housing performance evaluation services, the group has diversified into the Solutions Business, covering existing building Inspection and Construction Consulting Services, etc., as well as Others, including Energy Efficiency Conformity Assessment Services, BELS evaluation, and architect education. Major customers include building owners, designers, contractors, real estate developers, and public institutions. With 757 confirmation and inspection engineers (as of the end of May 2025), the group is a highly public-interest-oriented team of engineers holding numerous designations and registrations from the Minister of Land, Infrastructure, Transport and Tourism, prefectural governors, and other authorities.
Business Model
Statutory operations such as Building Confirmation and Housing Performance Evaluation are primarily driven by fee income linked to the number of applications, forming a stable earnings base supported by institutional demand even as it is affected by economic fluctuations. In addition, the company pursues a strategy of expanding its revenue scale by building up its Solutions Business—covering Construction Consulting Services, etc. and infrastructure inspection—through M&A. In FY2025 (ending May 2025), net sales reached ¥19,765 million, with an operating margin of 10.4% and ROE of 21.4%.
Company Strengths
Began operations in 2000 as the first private Building Confirmation & Inspection agency designated by the Minister of Construction, building a track record of over 25 years. With 757 building confirmation inspectors (as of the end of May 2025), the company has established high brand recognition and strong brand power within the industry as one of Japan's largest groups of designated Building Confirmation & Inspection agencies.
Following the revised Building Standards Act and revised Act on the Improvement of Energy Consumption Performance of Buildings, which took effect in April 2025, compliance with energy efficiency standards has become mandatory in principle for nearly all buildings, increasing demand for Building Confirmation & Inspection and Energy Efficiency Conformity Assessment Services. The narrowing of the Article 4 exemption has expanded the scope of buildings subject to review, and the opening of plan notification-target buildings to the private sector in November 2024 has also created new business opportunities.
Since 2017, the company has successively made subsidiaries of Housing Performance Evaluation Center, Sakkoken, Dokencon, Shinrin Kankyo Realize, Nikken Consultant, Asia Consultant, Fukuda Suimon Center, Kokudo Koei Consultants, Hanada Design Office, and others. Revenue for FY2025 (ended May 2025) expanded to ¥19,765 million, up 37.3% from FY2021 (ended May 2021).
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥16,148 million in FY2022 (ended May 2022) to ¥24,704 million in FY2026 (ending May 2026). Operating profit peaked at ¥2,326 million in FY2023 (ended May 2023), remained roughly flat through FY2024 and FY2025 (ended May 2024 and May 2025), then expanded sharply to ¥4,943 million in FY2026 (ending May 2026), with the operating margin improving significantly from 10.4% to 20.0%. The primary drivers were an increase in the number of Energy Efficiency Conformity Assessment and Housing Performance Evaluation certificates issued, along with fee revisions, following the mandatory compliance with energy efficiency standards that took effect in April 2025 (an external factor), as well as earnings contributions from newly consolidated subsidiaries acquired through M&A. Operating cash flow also expanded to ¥4,945 million, more than six times the prior-period level, and cash balances accumulated to ¥8,154 million. For FY2027 (ending May 2027), the company forecasts revenue of ¥27,000 million (up 9.3% year on year) and ordinary profit of ¥5,330 million (up 7.2% year on year).
Growth Strategy
Strengthening response to regulatory changes, continuing M&A, and revising the mid-term plan upward, the company aims for net sales of ¥30,000 million and ordinary profit of ¥5,500 million in FY2028 (ending May 2028)
Under the amended Building Standards Act and amended Act on the Improvement of Energy Consumption Performance of Buildings, effective April 2025, compliance with energy efficiency standards became mandatory for all new buildings. The company expanded its review structure to handle the increase in Energy Efficiency Conformity Assessment Services and Building Confirmation & Inspection Services and revised fee schedules, achieving an operating margin of 22.8% in the Building Confirmation & Inspection and Related Business and Housing Performance Evaluation-related business in FY2026 (ending May 2026).
The company made ERI Kensa Center (June 2025), ERI Robotics (October 2025), and Taiei Consultants (April 2026) subsidiaries, expanding its business domain into periodic inspection of building equipment, drone inspection, and construction consulting. Net sales of the Infrastructure Stock and Environment-Related Business expanded to ¥5,609 million (up 24.8% year on year), with operating profit of ¥664 million (up 91.8% year on year). However, an impairment loss of ¥164,928 thousand was recorded at ERI Robotics.
Effective June 1, 2026, the company acquired 33.3% of the issued shares of East Japan Housing Evaluation Center Co., Ltd. from the Tokyo Gas Group, making it an equity-method affiliate. Through collaboration with this company, a private building confirmation and inspection agency designated by the Minister of Land, Infrastructure, Transport and Tourism, the company strengthens its business foundation for Building Confirmation, Inspection and Housing Performance Evaluation in the Eastern Japan region, complementing the group's four designated building confirmation and inspection agencies.
In light of the rapid business expansion in FY2026 (ending May 2026), the final-year targets of the mid-term management plan (June 2025 to May 2028) were revised upward, with net sales raised from ¥28,000 million to ¥30,000 million and ordinary profit raised from ¥4,000 million to ¥5,500 million. The company aims for continuous enhancement of corporate value through the two pillars of continuing business domain expansion measures utilizing M&A and developing the core business structure.
Last updated: July 17, 2026