Nice Corporation
8089・Standard Market・Wholesale Trade
Construction Materials Business
Nice's largest segment, responsible for the distribution of timber, building materials, and housing equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (external customers) | ¥193,532 million | ¥183,082 million | ↑ |
| Segment operating profit | ¥1,747 million | ¥2,257 million | ↓ |
| Segment assets | ¥96,041 million | ¥95,724 million | — |
| Timber net sales | ¥53,243 million | ¥55,339 million | ↓ |
| Building Materials & Housing Equipment net sales | ¥140,036 million | ¥127,477 million | ↑ |
| Depreciation | ¥1,110 million | ¥765 million | ↑ |
| Amortization of goodwill | ¥445 million | ¥222 million | ↑ |
Business Details
This segment manufactures and sells timber products, building materials, and housing equipment, and operates timber markets. Principal companies include the Company itself as well as Nice Precut Corporation (timber), Selex Corporation, Arborex Corporation, Sanyu Corporation, and Iyo Mokuzai Co., Ltd. (building materials & housing equipment). It is the largest segment, accounting for approximately 75% of consolidated net sales, and possesses a last-mile supply function to construction sites utilizing logistics bases nationwide. In FY2026 (ending March 2026), net sales to external customers were ¥193,532 million, and segment assets were ¥96,041 million.
Recent Overview
Net sales increased 5.7%, but operating profit declined 22.6% due to higher costs
In the Construction Materials segment for FY2026 (ending March 2026), net sales expanded to ¥193,532 million, driven by Building Materials & Housing Equipment at ¥140,036 million (up 9.9% year on year), while Timber was sluggish at ¥53,243 million (down 3.8% year on year). Operating profit fell sharply to ¥1,747 million (down 22.6% year on year). Increases in depreciation and goodwill amortization (due to the Selex consolidation) and the recording of an impairment loss of ¥490 million weighed on profit. The sales outlook for FY2027 (ending March 2027) is ¥200,000 million (up 3.3% year on year).
Key Products
Growth Drivers
- Continuation of the consolidation effect of Selex Holdings through the expansion of building materials and housing equipment (sashes, exteriors, etc.)
- Strengthening the supply system for domestic timber (cedar and cypress) (establishment of a new structural laminated timber plant, strengthening of sawmilling functions through M&A)
- Expansion of timber usage into non-residential and non-construction fields and creation of new value in wooden construction
- Strengthening of proposal-based sales for energy-related products and energy-saving building materials against the backdrop of accelerating ZEH adoption
- Strengthening of the last-mile function to construction sites utilizing nationwide logistics bases
- Conclusion of an agreement with the Ministry of Agriculture, Forestry and Fisheries to promote the use of wood in buildings, and expansion into non-residential wooden construction
Risks
- Demand contraction due to the long-term declining trend in new housing starts (continuation of the medium- to long-term declining trend accompanying population decline)
- Sluggish and uncertain trends in imported timber market prices (tightening of overseas environmental regulations, U.S. tariff policy trends)
- Profit pressure from increased goodwill amortization and depreciation associated with the Selex consolidation (goodwill amortization of ¥445 million in FY2026 (ending March 2026))
- Impairment loss risk (an impairment loss of ¥490 million was recorded in the Construction Materials segment in FY2026 (ending March 2026))
- Profit pressure from rising logistics costs
- Downward pressure on new-build demand due to soaring housing prices and concerns over rising interest rates
Last updated: June 24, 2026