C.S. LUMBER CO., INC
7808・Standard Market・Other Products
Business
C.S. Lumber Co., Ltd. was founded in 1983 in Chiba Prefecture as a lumber sales business, and began in-house precut processing in 1997. The company now has 8 consolidated subsidiaries and operates four businesses: precut processing and sales of lumber for conventional and two-by-four construction methods (its core business), construction contracting for wooden detached houses and large-scale wooden facilities, leasing management of commercial and residential real estate, and development and sale of subdivided detached housing lots. Its main customers are homebuilders such as construction companies and housebuilders. The company is characterized by its integrated value provision spanning sawmilling, processing, delivery, construction, and real estate, and operates mainly in Chiba Prefecture and the greater Tokyo metropolitan area. It listed on the JASDAQ market of the Tokyo Stock Exchange in 2017 and is currently listed on the Standard Market.
Business Model
The Precut Business accounts for approximately 74% of net sales (¥15,249 million in FY2025 (ending May 2025)), securing yield rates and cost competitiveness through in-house lumber milling, processing, and delivery. The Construction Contracting Business (¥5,170 million in the same period) differentiates itself through an Integrated Materials-and-Labor Provision (Construction Contracting × Precut Synergy) approach with the Precut Business, while the Real Estate Leasing Business (¥1,123 million in the same period) generates stable earnings by accumulating leased properties such as nursery facilities and commercial buildings. The company aims for a structure in which stable earnings from real estate leasing offset fluctuations in earnings from the Precut Business.
Company Strengths
Lumber milling is handled in-house by C.S. Material Co., Ltd., delivery by C.S. Logistics Co., Ltd., and CAD input by the Vietnamese subsidiary. By completing everything from lumber milling to delivery within the group, the company achieves yield optimization, improved delivery efficiency, and stronger cost competitiveness. Precut Business revenue for FY2025 (ending May 2025) was ¥15,249 million.
As of the end of FY2025 (ending May 2025), the company owned 21 nursery facility properties and 34 other leasing properties, recording leasing business revenue of ¥1,123 million (up 22.6% year on year) and segment profit of ¥579 million (profit margin of 51.6%). The company acquired 8 properties in FY2025 (ending May 2025) and a further 9 properties by the end of February 2026, continuing to build up its portfolio.
In the Construction Contracting Business, of the 199 units started in FY2025 (ending May 2025), 23 were large-scale wooden facility orders. The company has a track record of completing a wooden welfare facility exceeding 1,000 tsubo in Yotsukaido City, Chiba Prefecture, and has accumulated know-how to address demand for large-scale non-residential facilities driven by legislation promoting wooden construction in urban areas. Revenue from this business was ¥5,170 million (up 17.3% year on year).
ENVALITH's Perspective
Performance Trend
Net sales came to ¥20,381 million (down 1.4% year on year), marking a fifth consecutive year of declining sales. Operating profit was ¥1,134 million (down 36.1%), ordinary profit was ¥1,002 million (down 40.4%), and net income was ¥693 million (down 40.1%), with the deterioration in profitability accelerating. As an external factor, the pull-back from front-loaded demand ahead of the revised Building Standards Act that took effect in April 2025, combined with a 5.3% decline in new housing starts, directly hit the core Precut Business. In addition, price increases and supply constraints for petroleum-derived building materials, driven by heightened tensions in the Middle East, also had an impact in the second half. On the other hand, Construction Contracting and Real Estate Leasing maintained increases in both sales and profit, and the company forecasts a recovery for FY2027 (ending May 2027), projecting net sales of ¥21,000 million and operating profit of ¥1,490 million (up 31.4% year on year).
Growth Strategy
Diversified growth and revenue structure transformation through Integrated Materials-and-Labor Provision, Siding Precut expansion, and Real Estate Leasing growth
Accelerate the initiative combining structural timber and other material supply with erection work, i.e., "Integrated Materials-and-Labor Provision (Construction Contracting × Precut Synergy)," to move away from simple price competition. Promote a shift toward proposal-based sales that contribute to improving customer productivity and shortening construction periods, aiming to improve the profitability of the Precut Business.
Currently laying the groundwork for customer development through proactive sales activities aimed at securing orders in future periods. The integration of the Conventional Method and 2x4 Sales Headquarters (February 2026) strengthens the combined sales capabilities of Precut and Siding (Exterior Wall Material) Precut, aiming to establish a new revenue source.
Promoting proposal and order-taking activities centered on major clients through the reorganization of the sales organization across the group. In FY2026 (ending May 2026), the company achieved 183 units started construction, including 20 large-scale wooden facilities, and 188 units completed, including 27 large-scale wooden facilities. The consolidation of Sanyo Construction Co., Ltd. as a subsidiary also strengthened the construction execution structure.
Continuously acquiring rental properties each period (11 properties acquired in FY2026 (ending May 2026)), expanding the portfolio centered on commercial real estate such as nursery facilities and large-scale wooden facilities. Continuing active investment utilizing long-term borrowings, accumulating rental income to offset fluctuations in the profitability of the Precut Business.
Last updated: July 17, 2026