T.O. Holdings CO.,LTD.
9812・Standard Market・Wholesale Trade
Timber Business
A building materials sales business centered on the Hokkaido and Tohoku regions, facing headwinds from declining housing starts
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, FY2026 (ending May 2026)) | ¥3,071 million | ¥3,417 million | ↓ |
| Operating income/loss (full year, FY2026 (ending May 2026)) | -¥32 million | -¥12 million | ↓ |
| Depreciation (full year, FY2026 (ending May 2026)) | ¥13 million | ¥12 million | ↑ |
| Segment assets (end of FY2026 (ending May 2026)) | ¥1,770 million | ¥1,893 million | ↓ |
Business Details
This business sells general construction materials and plywood, primarily in the Hokkaido and Tohoku regions. Amid continued elevated material prices and transportation costs, uncertainty stemming from the situation in the Middle East has further dampened consumers' home-purchasing sentiment, and the segment continues to face a difficult environment for both sales and profit. It is positioned as one of the core businesses in the medium-term management plan "TO PLAN 2026."
Recent Overview
Declining sales in the Hokkaido and Tohoku regions widened the operating loss year on year
For full-year FY2026 (ending May 2026), net sales were ¥3,071 million (down 10.1% year on year), and the operating loss widened to ¥32 million (compared with a loss of ¥12 million in the prior period). In addition to continued increases in material prices and transportation costs, uncertainty stemming from the Middle East situation further weakened consumer home-purchasing sentiment. The decline in sales in the Hokkaido and Tohoku regions had a particularly large impact, and despite efforts to strengthen sales activities focused on existing business partners and reduce expenses, both net sales and operating income fell below the prior period's levels.
Key Products
Growth Drivers
- Recovery in housing starts (improvement in home-purchasing sentiment as material price increases level off)
- Recovery in construction demand in the Hokkaido and Tohoku regions
- Sales recovery through strengthened sales activities focused on existing business partners
- Efforts to improve profitability through reductions in selling, general and administrative expenses
Risks
- Deteriorating profitability due to continued rises in material prices and transportation costs
- Weakening consumer home-purchasing sentiment and declining housing starts due to geopolitical risks such as the Middle East situation
- Weather-related risks in the Hokkaido and Tohoku regions (e.g., construction delays and reduced demand due to heavy snowfall)
- Credit risk from deteriorating finances of business partners (retailers and construction companies)
- Structural long-term contraction in housing demand due to population decline and falling birthrate
Last updated: August 26, 2025