ENVALITH
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ORVIS CORPORATION

7827・Standard Market・Other Products

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株式会社オービス logo
ORVIS CORPORATION7827

Business

Orbis Corporation is a diversified corporate group headquartered in Fukuyama City, Hiroshima Prefecture, and listed on the TSE Standard Market. Starting from its Timber Business founded in 1959, the company operates four segments: the House & Eco Business, which handles prefabricated house and steel structure manufacturing/sales as well as temporary building leasing; the Solar Power Generation & Sales Business, comprising 15 sites across 3 prefectures with a total generation capacity of approximately 13MW; and the Life Create Business, which operates one golf course. Its main customers span a wide range including government agencies, manufacturers, and logistics companies, with a diverse track record of transactions ranging from major corporations to startups. In March 2024, the company made Kotobuki Iron Works Co., Ltd. of Yonago City, Tottori Prefecture, a consolidated subsidiary, strengthening its capability to handle heavy steel structures.

Business Model

The Timber Business (approximately 59% of sales composition) is a manufacturing and sales model in which NZ pine and domestic cedar are sawn at the Fukuyama Plant and sold as packaging materials and other products. The House & Eco Business (approximately 34%) combines the manufacturing and sales of prefabricated houses and steel structures, temporary building leasing, and construction contracting. The Solar Power Generation & Sales Business (approximately 4%) is a highly profitable segment boasting an operating margin of 66.3%, generating stable electricity sales revenue by utilizing the FIT system. The differing revenue characteristics of each business form a portfolio resilient to economic fluctuations.

Company Strengths

The company operates 15 solar power plants across 3 prefectures with total generation capacity of approximately 13MW, achieving operating income of ¥302 million on net sales of ¥456 million in FY2025 (ending October 2025), representing an operating margin of 66.3%. Due to declining depreciation expenses, the cost of sales ratio fell 2.7 percentage points year-on-year to 33.7%, reflecting continuous improvement in profitability.

With the full-year contribution of Kotobuki Tekko Co., Ltd. (which holds H-grade certification), consolidated as a subsidiary in March 2024, net sales of the House & Eco Business in FY2025 (ending October 2025) expanded sharply to ¥4,357 million (134.0% year-on-year), with operating income surging to ¥351 million (241.5% year-on-year). The cost of sales ratio declined by 1.7 percentage points year-on-year due to an increased in-house production ratio and improved order profitability.

The company has accelerated its shift from dependence on New Zealand logs to domestic cedar, reducing risks from exchange rate and shipping freight fluctuations. Despite a downturn in the packaging materials market, the company maintained order volumes close to full production capacity, keeping net sales at ¥7,442 million (101.3% year-on-year) in FY2025 (ending October 2025). It has built a broad track record of transactions ranging from major corporations to startups, strengthening its competitiveness.

ENVALITH's Perspective

For the interim period of FY2026 (ending March 2026)... wait, this should read October 2026. In the interim period of FY2026 (ending October 2026), net sales came to ¥5,578 million (down 17.2% year on year), operating profit was ¥61 million (down 84.2%), and profit attributable to owners of parent for the interim period was ¥17 million (down 92.9%), representing a substantial decline in both revenue and profit. The full-year forecast (net sales of ¥13,088 million, operating profit of ¥550 million, and net income of ¥354 million) has been left unchanged, but the interim operating profit progress rate is only 11.1%, meaning ¥489 million in operating profit must be earned in the second half. The record-high order backlog in the House & Eco Business is cited as the basis for a second-half recovery, but the level of difficulty in achieving this is high.

The primary cause of the company-wide deterioration in results was the House & Eco Business, which had generated operating profit of ¥250 million in the same period of the previous year but fell to an operating loss of ¥9 million in the interim period of FY2026 (ending October 2026). Net sales also nearly halved, coming to 56.1% (¥1,471 million) of the previous year's level. In addition to the temporary factor of construction start delays, there is a structural increase in costs due to higher personnel expenses aimed at strengthening human resources, and external headwinds include persistently high construction material prices and a shortage of skilled workers. The timing of revenue recognition from the order backlog and the continuity of the increase in personnel expenses will be key points to watch going forward.

The equity ratio improved to 45.9% (versus 45.4% at the end of the previous fiscal year), and financial soundness has been maintained. On the other hand, long-term borrowings increased to ¥3,653 million (versus ¥3,530 million at the end of the previous fiscal year), and the current portion of long-term borrowings due within one year also expanded to ¥1,195 million (versus ¥1,015 million). In the interim period of FY2026 (ending October 2026), cash flow from financing activities secured a positive ¥197 million through the procurement of ¥910 million in long-term borrowings, but the funding structure remains dependent on borrowing. The company has maintained its forecast for an increased annual dividend of ¥62 (versus ¥60 in the previous fiscal year), and its stance on shareholder returns can be viewed positively.

Growth Strategy

Under the medium-term management plan "NEXT STEP 10," the company aims to achieve net sales of ¥14,051 million and operating income of ¥1,026 million in FY2027 (ending October 2027)

"Recruitment, development, and retention of human resources" has been set as a priority measure of the medium-term management plan "NEXT STEP 10," and is being pursued company-wide. In the House & Eco Business, the focus on recruiting and developing excellent personnel has led to an increase in personnel expenses, but priority is being given to building a foundation for medium- to long-term growth.

During the first half of the current fiscal year, multiple large-scale projects were contracted, bringing the order backlog to a record high level. Delays in the start of construction on some large-scale projects pushed back sales recognition in the first half, but a recovery in performance is expected through sales recognition from the second half onward. The company will continue flexible proposal-based sales approaches encompassing both sales and leasing.

By promoting the shift to domestic cedar, the company is reducing foreign exchange risk and achieving stable procurement. Through geographic sales expansion, such as utilizing products in distant regions, and proposal-based sales aimed at developing new customers and deepening relationships with existing customers, the company seeks to maintain sales levels even amid a challenging market environment.

Thorough regular maintenance is being carried out at all 15 power plants, with a total generation capacity of approximately 13MW, to maintain stable operation. In the first half of FY2026 (ending October 2026), favorable weather conditions led to an increase in electricity sales revenue (net sales of ¥196 million, 107.0% year-on-year). The company will continue to generate stable, high profitability through fixed-price electricity sales under the FIT system.

Last updated: July 17, 2026