NISHIO HOLDINGS CO. , LTD.
9699・Prime Market・Services
Business
Nishio Holdings Co., Ltd. is a pioneer in the comprehensive rental business, tracing its origins to the start of road machinery rental in 1965. It transitioned to a holding company structure in April 2023, and through its core subsidiary Nishio Rent All Co., Ltd., conducts the rental and sale of construction and equipment installation machinery (civil engineering and road machinery, aerial work platforms, surveying equipment, etc.) as well as event-related equipment. Domestically, the group comprises 43 subsidiaries and affiliates, and it also has overseas operations in Australia, Thailand, Malaysia, Vietnam, Singapore, and elsewhere. Its main customers are construction companies and equipment installation companies, capturing a wide range of demand from public civil engineering works, private building construction, and events. Consolidated net sales for FY2025 (ending September 2025) reached ¥214,954 million.
Business Model
The company's core earnings model is a stock-based rental business in which it holds rental assets with an acquisition cost of ¥263,888 million and repeatedly lends them out to construction and event sites to build up rental income. It aims to maintain an investment recovery rate (rental revenue ÷ rental asset acquisition cost equivalent) of 24–25%, and manages rental asset investment in a disciplined manner with EBITDA as the ceiling. While depreciation expense is substantial, operating cash flow is generated stably, reaching ¥31,809 million in FY2025 (ended September 2025).
Company Strengths
Sales expanded for five consecutive fiscal years, growing from ¥161,756 million in FY2021 (ended September 2021) to ¥214,954 million in FY2025 (ended September 2025), while operating profit also increased from ¥13,714 million to ¥19,602 million over the same period. Against the FY2025 targets under the medium-term management plan "Next Stage 2026" (sales of ¥220,000 million and operating profit of ¥19,000 million), operating profit is tracking ahead of plan.
At the end of FY2025 (ended September 2025), the equity ratio stood at 46.6% (up 1.1 points year on year), the debt redemption period improved to 3.0 years (continuing improvement from 4.4 years in FY2022, ended September 2022), and the interest-bearing debt to monthly sales ratio was 5.4 months, achieving the company's own target of 6.5 months or below. Cash and cash equivalents were ample at ¥62,003 million, and financial soundness continues to improve steadily.
Domestically, the group covers peripheral businesses such as construction machinery rental, tunnel machinery, aerial work platforms, event equipment, transportation, and electrical construction work through its subsidiaries. Overseas, the group has expanded into Australia (SKYREACH GROUP, NORTH FORK, etc.) and Southeast Asia (Thailand, Malaysia, Vietnam, and Singapore), securing access to growth markets.
ENVALITH's Perspective
Performance Trend
From FY2021 to FY2025, the company achieved five consecutive periods of growth in both revenue and operating profit. However, in the first half of FY2026 (ending September 2026), revenue was ¥107,888 million (down 3.3% year on year), operating profit was ¥10,565 million (down 7.5% year on year), and net income attributable to owners of the parent for the interim period was ¥6,723 million (down 7.9% year on year), with declines across all profit levels versus the prior-year period. The main causes were the reversal of special demand related to the Osaka-Kansai Expo and short-term fluctuations in construction demand. External factors such as US tariff policy, surging resource prices, and geopolitical risk in the Middle East are increasing uncertainty. On the other hand, the gross profit margin improved to 42.8% from 40.2% in the prior-year period, as a decline in cost of sales (from ¥66,660 million to ¥61,706 million) supported gross profit. The full-year forecast remains unchanged, with a recovery in demand in the second half serving as the premise for achieving it.
Growth Strategy
Aiming to achieve the goals of the final year of the medium-term management plan "Next Stage 2026" through construction DX, logistics, and overseas expansion
Strengthening the deployment of automated and remote construction equipment, acquiring local users across multiple work types including rivers, ports, and paving. Responding to growing demand for remote data visualization solutions, the company aims to improve profitability by providing value beyond simple rental.
Developing a proprietary service that combines logistics efficiency at construction sites with advanced temporary works, capturing the construction industry's needs for productivity improvement. Positioned as a key initiative under the medium-term plan, aiming to deepen customer engagement across entire construction projects.
Building up a track record of orders for large broadcast vehicles and broadcast cameras at international baseball tournaments, while strengthening order-taking activities for the Asian Games to be held in autumn. Capturing demand for stage components and protective materials across a diverse range of events, including music and gaming events.
Both the Australia and Vietnam operations are progressing steadily, and the company continues to strengthen its business foundation in these high-growth overseas markets. Expanding the sales contribution from overseas operations is advancing geographic diversification across the group as a whole.
The company is carrying out subsidiary divestitures and intra-group restructuring within the "Other" segment to improve management efficiency. The policy is to concentrate management resources on rental-related businesses by streamlining non-core operations. Sales in the "Other" segment for the interim period fell sharply to 29.5% of the same period of the previous year, reflecting the impact of this restructuring.
Last updated: July 17, 2026