NISHIO HOLDINGS CO., LTD. (9699) Stock Price

Nishio Holdings operates as a holding company managing the entire group. The company's core business involves renting and selling equipment for construction and facility work, as well as event materials, providing customers with all necessary machinery for their operations. The group also handles related services including equipment transportation, operation, and maintenance.

Primary customers include construction companies, facility contractors, civil engineering firms, and event management companies, generating revenue through machinery usage at job sites. The revenue structure centers on rental fees and equipment sales, with ancillary businesses such as maintenance, transportation, operator dispatch services, and parking lot operations providing stable income streams.

Operations are divided into rental-related business and other business segments. The rental division handles construction heavy machinery, aerial work platforms, generators, and used equipment sales. Domestic and international subsidiaries maintain rental and sales networks tailored to their regions, while the other business segment complements group services through equipment maintenance and manufacturing, electrical work, insurance agency services, and real estate management.

Based on its medium-term management plan "Next Stage 2026," the company is working to rebuild its revenue foundation and restore growth over the three-year period from September 2024 to September 2026. The company targets revenue of 220 billion yen and operating profit of 20 billion yen by September 2026, with EBITDA (a measure of earning power before depreciation) set at approximately 57.3 billion yen. The company prioritizes investment efficiency, aiming to maintain ROI at 23.2% while setting investment payback rates at 24–25% to guide capital allocation decisions. Total investment in rental assets is capped at EBITDA levels. For financial stability, the company aims to maintain an equity ratio of 50% and keep interest-bearing debt within 6.5 months of monthly sales.

In priority investment areas, the company differentiates itself by combining traditional construction equipment rental with transportation, logistics, and event support services. Specifically, it is strengthening "construction logistics" services that integrate material transport and equipment management both on and off job sites, as well as "temporary solutions" services that support interim land use and community revitalization through temporary facilities. To enhance competitiveness, the company is expanding one-stop solutions tailored to site needs and adding maintenance, transport, and operation support services. The company has established an operational structure that consolidates rental assets and capital across the group for efficient allocation. Investment decisions are made based on payback rates and capital costs, with a focus on revenue-generating asset investments.

For new market development, the company is actively pursuing M&A in overseas growth markets and targeting project acquisition through partnerships with major construction companies and developers domestically. As part of sustainability efforts, the company is establishing a timber modular construction business and focusing on introducing electric construction equipment to decarbonize job sites and developing on-site charging infrastructure. This approach creates synergies beyond traditional rental operations, aiming to expand long-term recurring revenue alongside short-term rental income.

In technological innovation, the company is advancing both business digitalization (such as inventory management and equipment utilization visibility) and enhanced safety measures. Specifically, the company is improving preventive maintenance and equipment utilization rates by leveraging operational data from job site machinery, while developing and providing safety products and management systems for sites. The company is also investing in charging infrastructure for electric equipment adoption and human resource development through safety committees and training programs, pursuing productivity improvements and safety assurance on job sites through both technology and people.