NODA CORPORATION

Business Details

Manufactures and sells interior materials (flooring, fittings, etc.), housing equipment, and fiberboard (MDF); undertakes housing-related construction work; and designs and constructs exterior structures. In addition to the parent company, the business is operated by subsidiaries including Nafix Co., Ltd. (housing-related construction work and construction materials sales), Arimoto Kogyo Co., Ltd. (design and construction of wooden exterior structures), and Slinder (Indonesia; manufacture of fittings and joinery materials). Major sales customers are SMB Kenzai Co., Ltd. and Itochu Kenzai Corporation. This is the core segment, accounting for approximately 62% of consolidated net sales.

Recent Overview

Sluggish housing demand combined with rising raw material and logistics costs led to a 60.2% year-on-year decline in H1 segment profit

In the Wood-based Building Materials Business for H1 FY2026 (ending March 2026) (December 2025 to May 2026), net sales were ¥19,669 million (down 1.2% year on year) and segment profit was ¥176 million (down 60.2% year on year). Amid a 2.5% year-on-year decline in new housing starts, sales volumes of building materials and MDF products overall failed to recover, and profitability deteriorated significantly as raw material, auxiliary material, and logistics costs also rose. In April 2026, the company implemented a partial renewal of "Kanaeru" along with a revision of list prices. From the third quarter, the company plans to revise sales prices for building materials and MDF products overall, aiming to absorb cost increases and improve profitability.

Key Products

Growth Drivers

• Strengthened value-added proposals and expanded market share through the April 2026 renewal and price revision of the interior building materials series "Kanaeru"
• Absorption of cost increases and improved profitability through sales price revisions for building materials and MDF products overall starting in the third quarter
• Capturing demand in the rental housing market (relatively solid, up 1.8% year on year) and for soundproof flooring through strengthened proposals of "Sha-on" for wooden multi-family housing
• Expanding demand for the structural panel "HBW" driven by revisions to the Building Standards Act and the Building Energy Efficiency Act (effective April 2025)
• Expansion into the non-residential (public and commercial facility) market and growth of materials-and-labor sales through strengthened collaboration with Arimoto Kogyo Co., Ltd.
• Steady performance in the renovation market and response to demand for improved performance of existing housing

Risks

• Sluggish sales volumes due to the continued decline in new housing starts (down 2.5% year on year in H1 FY2026, ending March 2026)
• Structural weakness in housing demand due to soaring construction costs, rising mortgage interest rates, and a shortage of skilled workers
• Deterioration of the procurement environment and rising prices for petrochemical products such as adhesives, paints, and packaging materials due to the prolonged Middle East situation
• Rising costs for raw materials, auxiliary materials, and logistics due to the continued weak yen, and difficulty passing these costs on through sales prices
• Customer concentration risk due to sales concentration with SMB Kenzai Co., Ltd. (net sales of ¥29,712 million, accounting for 45.9% of the total)
• Foreign exchange and geopolitical risks at overseas production sites, including the Indonesian subsidiary Slinder
• Prolonged impact of a substantial decline in housing starts due to delays in building confirmation review processes following the revision of the Building Standards Act effective April 2025