FULUHASHI EPO CORPORATION
9221・Standard Market・Services
Business
Furuhashi EPO Corporation is an environmental solutions company founded in 1948 and headquartered in Nagoya City, Aichi Prefecture. In its core Biomaterial Business, the company collects woody waste such as demolition debris and used pallets, and recycles it into wood chips for paper pulp raw material and wood biomass fuel chips. In the Resource Recycling Business, the company collects and recycles construction by-products from residential construction sites, while in its Others segment, it engages in the sale and reuse of logistics equipment such as wood pallets, environmental consulting, and facility security, among other operations. Its main customers include construction companies, homebuilders, paper manufacturers, and wood biomass power plants. The company operates numerous plants centered on Aichi Prefecture across the Chubu and Kanto regions, and also has overseas bases in Thailand and Vietnam. It listed on the TSE Standard Market and the Nagoya Stock Exchange Main Market in 2022.
Business Model
The company receives processing fees from waste generators for woody waste while selling the processed wood chips to paper and building material manufacturers and woody biomass power plants, thereby earning revenue from both the waste acceptance side and the product sales side. Similarly, in the Resource Recycling Business, the company combines processing service fees for construction by-products with proceeds from the sale of recycled materials. This structure means that both the volume of waste generated and demand for wood chips support the revenue base.
Company Strengths
Built a dual-income model that simultaneously earns processing service fees for woody waste and sales revenue from recycled wood chips. Biomaterial Business sales for FY2026 (ending March 2026) continued to grow steadily at ¥7,336 million (107.1% year-on-year), and a revenue structure that does not depend on a single income source supports the stability of performance.
Operates numerous recycling plants nationwide, including the Aichi No.1 through No.8 plants, as well as the Tobishima, Mie, Shizuoka, Gifu, Hiroshima, Shonan, East Tokyo, and West Tokyo plants. The Aichi No.8 plant (Ichinomiya) was brought online in October 2024, followed by the Nagoya CE Center in September 2025, strengthening the raw material procurement system and supply stability. This has formed a regionally embedded processing network that is difficult for competitors to replicate in a short period.
The company has invested in Kawasaki Biomass Power Generation (13.0% equity stake, power output of 33,000kW) and CEPO Handa Biomass Power Generation (10.0% equity stake, power output of 50,000kW), while also supplying fuel chips to them. By combining equity investment with fuel supply to build these relationships, the company has secured stable sales outlets for wood chips.
ENVALITH's Perspective
Performance Trend
Net sales grew for five consecutive fiscal years, from ¥7,716 million in FY2022 (ending March 2022) to ¥10,008 million in FY2026 (ending March 2026), surpassing ¥10 billion for the first time. Operating profit also increased for the fourth consecutive fiscal year, reaching ¥1,175 million (operating margin of 11.7%). However, ordinary profit declined 18.0% from ¥1,433 million in the previous fiscal year to ¥1,175 million, and net profit attributable to owners of the parent also decreased 13.8%, from ¥1,033 million to ¥891 million. The main causes were the drop-off of one-time gains recognized in the previous fiscal year, such as insurance cancellation refunds (¥195 million) and gains on sale of investment securities (¥50 million), as well as an increase in interest expenses (from ¥43 million to ¥63 million) due to a rise in short-term borrowings (up ¥1,392 million) associated with active capital expenditures, and an increase in losses on sale of receivables (from ¥19 million to ¥49 million). The Biomaterial Business achieved revenue growth driven by the operation of the Nagoya CE Center and the Aichi No. 8 Plant, but segment profit declined 3.1% year on year as launch costs for the new facilities weighed on profitability.
Growth Strategy
Growth strategy to expand the factory network with the aim of achieving net sales of ¥14.0 billion and operating profit of ¥2.5 billion in FY2030 (ending March 2030)
The newly established Nagoya CE Center in Nagoya City, Aichi Prefecture, commenced operations in September 2025. It has further strengthened the raw material procurement system and stabilized supply, contributing to increased revenue in the Biomaterial Business. Segment sales for FY2026 (ending March 2026) reached ¥7,336 million (107.1% year-on-year).
Plans are underway to open Nagoya Narumi CE Park as the next major base in the Biomaterial Business. As of the end of FY2026 (ending March 2026), land increased by ¥826 million due to the acquisition of the site for the planned new factory construction, and investment is progressing. Once operational, an increase in raw material procurement volume and expansion of wood chip production volume are expected.
The original plan (final year FY2028 (ending March 2028), net sales of ¥15.0 billion and operating profit of ¥3.0 billion) has been revised, extending the final year by two years to FY2030 (ending March 2030), with new targets set at net sales of ¥14.0 billion, operating profit of ¥2.5 billion, operating margin of 17%, ROE exceeding 15%, and a consolidated dividend payout ratio of 35% or more (progressive dividend). This revision reflects a more realistic plan in light of rising construction and logistics costs and delays in obtaining permits and licenses.
Even amid the headwind of a 12.9% year-on-year decline in housing starts, sales efforts targeting regionally focused construction companies and the acquisition of new customers expanded handling volume to 105.9% year-on-year. Segment profit improved from ¥72 million in the previous period to ¥90 million, and the profit margin rose from 3.5% to 5.3%.
Last updated: July 19, 2026