Daito Trust Construction (1878) Q4 2026 earnings summary

Executive summary

• Net sales reached ¥1,984.7bn for FY ended March 2026, with operating profit at ¥135.2bn, marking record profit levels and a 13.8% YoY increase.

• Growth was driven by steady construction progress, increased whole-building lease properties, and a strong real estate development business.

• Orders received totaled ¥570.5bn, down 4.4% year-over-year, while occupancy rate improved to 98.0%.

• ROE increased to 20.5% (+1.0p YoY), and annual dividend rose to ¥150.4 per share.

• The company executed a 5-for-1 stock split effective October 1, 2025, and finalized provisional accounting for a prior business combination.

Financial highlights

• Operating profit grew 13.8% YoY to ¥135.2bn; profit attributable to owners of parent rose 7.5% to ¥139.1bn.

• Gross profit increased 9.9% YoY to ¥347.1bn; operating margin improved to 6.8%.

• SG&A expenses increased 7.5% YoY to ¥211.7bn, mainly due to higher personnel and promotion costs.

• Total assets at March 2026 were ¥1,367.5bn (+¥145.6bn YoY); equity ratio at 36.5% (down from 38.4%).

• Cash and cash equivalents at year-end were ¥258.1bn, up from ¥223.5bn.

Outlook and guidance

• FY ending March 2027 forecasts: net sales ¥2,050.0bn (+3.3% YoY), operating profit ¥142.0bn (+5.0%), profit attributable to owners of parent ¥140.0bn (+0.6%).

• Construction orders expected at ¥580.0bn (+1.7% YoY), real estate sales at ¥100.0bn (+28.2%).

• Annual dividend planned at ¥163 per share, payout ratio 50%.