CS Lumber Co., Ltd. (TSE: 7808) reported consolidated results for the full year ending May 2026 (June 1, 2025 – May 31, 2026) under Japanese GAAP. Revenue slipped 1.4% to ¥20,381 million, operating profit fell 36.1% to ¥1,134 million, ordinary profit dropped 40.4% to ¥1,002 million and net profit attributable to owners of the parent declined 40.1% to ¥693 million. Earnings per share were ¥374.69, down from ¥625.99 a year earlier, while comprehensive income fell 35.5% to ¥742 million.
Housing slowdown squeezes the precut business
CS Lumber is a precut-lumber and building-materials group — supplying precut structural wood and siding and running a building-contracting operation — that serves Japan's housing industry from a base in Chiba. Over the year, Japanese housing starts fell 5.3% amid a pullback after the rush demand that preceded the revised Building Standards Act (with its energy-efficiency mandate) took effect in April 2025. Longer building-permit processing and rising home prices — driven by higher materials and labor costs and by mortgage-rate worries following Bank of Japan rate hikes — further dampened construction activity.
Late in the year, tensions in the Middle East lifted crude oil and naphtha prices, raising costs and constraining the supply of petroleum-based materials such as paints, insulation and adhesives. The combination of softer volumes and higher input costs compressed profitability, driving the steep declines in operating and ordinary profit even as revenue held broadly flat.
Restructuring and a new earnings pillar
To defend margins, the company merged its conventional-construction and 2×4 sales divisions in February 2026 into a new sales headquarters, and pursued improvements in product yield and delivery efficiency. Management is also cultivating building-contracting as a new earnings pillar to diversify beyond materials supply. During the year the group newly consolidated Sanyo Construction Co., Ltd. and CSL CAD Vietnam Company Limited, expanding its construction and design-support footprint.
Balance sheet and cash flow
Total assets stood at ¥30,279 million and net assets at ¥11,883 million, for an equity ratio of 39.2% and book value per share of ¥6,424.23. Operating cash flow was a positive ¥1,835 million, but investing activities used ¥4,610 million — reflecting the acquisition of multiple rental-property assets aimed at stabilizing earnings, plus M&A — and financing activities provided ¥1,940 million. Cash and equivalents ended the year at ¥2,475 million.
Dividend held; profit rebound guided
CS Lumber kept its annual dividend at ¥80.00 per share (¥0 interim + ¥80.00 year-end), unchanged from the prior year, for a payout ratio of 21.4%. For the year ending May 2027 the company guides a recovery: revenue of ¥21,000 million (+3.0%), operating profit of ¥1,490 million (+31.4%), ordinary profit of ¥1,270 million (+26.7%) and net profit of ¥910 million (+31.3%), with EPS of ¥491.95.
| Metric | FY5/2026 | FY5/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 20,381 | 20,673 | -1.4% |
| Operating profit (¥ million) | 1,134 | 1,774 | -36.1% |
| Ordinary profit (¥ million) | 1,002 | 1,680 | -40.4% |
| Net profit (¥ million) | 693 | 1,157 | -40.1% |
| EPS (¥) | 374.69 | 625.99 | -40.1% |
| Annual dividend (¥) | 80.00 | 80.00 | ±0.0% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.