TAKASHIMA & CO.,LTD.

Business Details

Handles a diverse range of construction and building-related products including wall materials, foundation piles, insulation materials, solar panels, and interior goods. Has built a nationwide sales network and undertakes a wide range of processes from planning and design through construction. As the core segment accounting for approximately 64% of consolidated net sales, it is pursuing functional enhancement measures across the housing, non-residential, renewable energy, and insulation materials fields. The group includes Ganswi Kaihatsu Co., Ltd., Sanwa System Co., Ltd. (formerly under Sanwa Holdings, integrated via absorption-type merger in January 2026), and other companies, and also incorporates construction and installation functions.

Recent Overview

Sales grew in housing and renewable energy fields, but sluggish non-residential business and increased costs led to lower sales and profit. The DG Takashima issue directly hit ordinary income.

In the Building Materials segment for FY2026 (ending March 2026), net sales were ¥58,434 million (down 4.2% year on year), and segment profit was ¥1,722 million (down 7.0% year on year). The housing field performed well, and the renewable energy materials field saw increased sales due to strong sales of residential storage batteries and the earnings contribution from Sanwa System Co., Ltd. (formerly Sanwa Holdings), while sluggish non-residential foundation-related construction weighed on overall results. Increased sales activity expenses aimed at business expansion also pressured profits. In January 2026, an absorption-type merger with Sanwa System Co., Ltd. as the surviving company was carried out, reorganizing the group's internal structure. As a subsequent event, on May 14, 2026, Ganswi Kaihatsu Co., Ltd. entered into an agreement to acquire the ground tech business (acquisition cost of ¥830 million) from JFD Engineering and to make Ando Co., Ltd. (RC pile manufacturing, acquisition cost of ¥170 million), a subsidiary of JFD Engineering, its subsidiary (execution scheduled for June 1, 2026).

Key Products

Growth Drivers

• Continued expansion in demand for renewable energy materials (residential storage batteries and solar power)
• Expansion into the industrial solar power field together with Sanwa System Co., Ltd. (formerly Sanwa Holdings)
• Business expansion in the construction materials field through Ganswi Kaihatsu Co., Ltd.'s acquisition of JFD Engineering's ground tech business (scheduled for June 2026)
• Strengthening of the supply chain through the subsidiarization of Ando Co., Ltd. (RC pile manufacturing)
• Enhancement of functions across businesses and promotion of growth strategy through organizational restructuring implemented in FY2026 (ending March 2026)
• Continued expansion of sales of new products in the housing field

Risks

• Continuation of sluggish foundation-related construction in the non-residential field
• Profit pressure from increased sales activity expenses and indirect costs aimed at business expansion
• Stagnation in demand for housing materials due to sluggish housing starts
• Impairment risk related to the goodwill balance of ¥5,095 million (end of FY2026, ending March 2026) associated with M&A transactions such as Sanwa System
• Risk of additional losses arising from DG Takashima Co., Ltd.'s difficulty continuing as a going concern and improper fund outflow issue (remains related to the Building Materials segment as an equity-method affiliate)
• Rising energy costs and raw material supply uncertainty due to escalating tensions in the Middle East
• Goodwill generation and integration risk associated with Ganswi Kaihatsu Co., Ltd.'s acquisition of the ground tech business and subsidiarization of Ando Co., Ltd.