Daiwa House Industry (1925) Q1 2027 earnings summary

Executive summary

• Net sales for FY2026 1Q reached ¥1,408.3 billion, up 9.0% year-over-year, with operating income at ¥130.6 billion (+10.6%), ordinary income at ¥123.0 billion (+9.9%), and net income at ¥83.1 billion (+9.1%), all record highs.

• Comprehensive income surged 188.1% year-over-year to ¥105.8 billion, reflecting strong performance and favorable foreign currency translation adjustments.

• Both domestic and overseas businesses contributed to growth; domestic benefited from steady project progress and strong property sales, while overseas saw higher sales but lower operating income due to incentives in the U.S.

• The company established a Data Center Business Division in April 2026 to expand its data center operations.

Financial highlights

• Gross profit margin improved slightly to 21.3% (+0.1pt YoY), with gross profit rising to ¥300.6 billion.

• SG&A expenses increased 9.0% YoY to ¥169.9 billion.

• Total assets rose to ¥8,616.4 billion (+2.4% from March 2026), while net assets slightly decreased to ¥3,002.6 billion (-0.7%).

• EPS for the quarter was ¥134.33, up 9.0% YoY.

Outlook and guidance

• FY2026 full-year forecasts were revised upward: net sales to ¥5,900.0 billion (+¥100.0 billion), operating income to ¥460.0 billion (+¥60.0 billion), and net income to ¥266.0 billion (+¥39.0 billion).

• Basic net income per share forecast at ¥214.74 post-stock split.

• Annual dividend forecast raised by ¥2 to ¥178 per share (pre-stock split); two-for-one stock split effective October 1, 2026.

• Risks from overseas business environment, global trade policy, and Middle East instability remain factored into guidance.