NICHIHA CORPORATION
7943・Prime Market・Glass & Ceramics Products
Business
Nichiha Corporation, founded in 1956, is a manufacturer specializing in exterior wall materials, with Fiber Cement Exterior Materials (Siding) (Moen series) and metal exterior materials as its core products. Domestically, the company manufactures at multiple plants including Nagoya, Iwaki, Shimonoseki, Takahagi, and Fuji, and sells through major building materials distributors such as SMB Building Materials, Sumitomo Forestry, and Itochu Building Materials. Overseas, Nichiha USA, Inc., which operates its own factory in Georgia, U.S.A., handles manufacturing and sales, and the company also maintains sales networks in Canada, China, Australia, Asia, and Europe. Of net sales of ¥143,740 million, the Exterior Wall Materials Business accounts for approximately 93%, and the company is pursuing expansion into the non-residential market (commercial facilities, mid-rise buildings, condominiums) in addition to the residential market.
Business Model
The core business model is manufacturing-and-wholesale, whereby exterior materials produced at the company's own and subsidiary factories are sold through major building materials distributors. The distribution structure is concentrated, with the top three distributors (SMB Construction Materials at 26.0%, Sumitomo Forestry at 21.4%, and Itochu Building Materials at 14.3%) accounting for approximately 62% of sales. As measures to improve profitability, the company has introduced high-value-added products such as the "Premium Series" with a 30-year coating warranty, implemented periodic revisions to product prices and delivery fees, and strengthened combined sales of installation-related materials alongside the main siding products, aiming to expand revenue and profit per house.
Company Strengths
In addition to multiple domestic sites such as Nagoya, Iwaki, Shimonoseki, Takahagi, and Fuji, manufacturing is also handled by subsidiaries including Nichiha Matex, Takahagi Nichiha, Nichiha Fuji Tech, and Chuo. In the U.S., the company owns the No. 1 and No. 2 plants in Macon, Georgia, with the No. 2 plant having started operations in 2022. The company is pursuing labor-saving investment through the expansion of optimal-location production and the use of digital technology, simultaneously pursuing logistics cost reductions and productivity improvements.
The company maintains ongoing business relationships with three major distributors: SMB Kenzai (26.0% of sales, ¥37,367 million), Sumitomo Forestry (21.4%, ¥30,693 million), and Itochu Kenzai (14.3%, ¥20,490 million). The long-term transactional foundation with these major distributors forms an entry barrier that is difficult for competitors to replicate in a short period, contributing to securing stable sales volumes.
The company has developed and rolled out the new construction method "Plaster Moen Exterior Wall Fire-Resistant Structure," which received the 2025 Good Design Award, the "Nichiha MARC System" reform method for mid-rise buildings and condominiums, the metal-based "Slate Exterior Wall Renovation Method," and the "RC×EX Method" for reinforced concrete structures, among others. Investing ¥1,220 million in R&D expenses with 91 R&D personnel, the company is also expanding its high-value-added product line, such as by adding next-generation inkjet-coated products to its "Premium Series," which supports a 30-year coating warranty.
ENVALITH's Perspective
Performance Trend
Revenue grew for four consecutive periods from ¥128,599 million in FY2022 to ¥148,478 million in FY2025, but turned to a decline in FY2026, falling 3.2% year-on-year to ¥143,740 million. Operating profit recovered 34.6% in FY2026 to ¥9,355 million from ¥6,951 million in the previous period, but remains approximately 25% below the FY2022 level (¥12,576 million). Net income attributable to owners of parent fell further to ¥2,486 million from ¥2,706 million in the previous period, continuing a decline of roughly 75% from FY2022. Externally, a decrease in the number of domestic housing starts and persistently high raw material and energy costs have pressured earnings. While the effect of price revisions contributed to a partial recovery in operating profit, this was offset by a decline in volume due to lower revenue. By segment, revenue (from external customers) was ¥134,108 million for the Exterior Wall Materials Business and ¥9,632 million for Other.
Growth Strategy
Aiming to become a global company by 2030 through three pillars: expansion into the domestic non-residential market, growth of the U.S. commercial business, and profitability improvement
Continuing to implement price revisions to pass on rising raw material and energy costs. This also functioned as a factor boosting earnings in FY2026 (ending March 2026), contributing to the year-on-year recovery in operating profit (from ¥6,951 million to ¥9,355 million). The company aims to strengthen its earnings structure through unit price improvements.
To counter the external headwind of declining housing starts, the company has assigned dedicated personnel nationwide to actively develop the non-residential market. This initiative aims to reduce dependence on housing demand and diversify the demand base; quantitative confirmation of its contribution to sales will be a key evaluation point going forward.
Leveraging the local production system in the U.S., the company is strengthening its sales structure targeting commercial customers, aiming to establish revenue sources not overly reliant on the housing market. In FY2026 (ending March 2026), overall sales in the Exterior Wall Materials Business declined year on year, making the full-scale expansion of the U.S. business' contribution a key challenge.
By selling construction accessory materials alongside the main exterior wall materials, the company aims to increase sales and profit margin per project. This shift from single-product sales to solution-based sales is intended to improve profitability through distribution channels.
In FY2026 (ending March 2026), the increase in tangible and intangible fixed assets amounted to ¥4,250 million, reflecting continued capital investment. Through labor-saving and automation investments, the company is working to improve its fixed cost structure and strengthen cost competitiveness.
Last updated: July 19, 2026