Daiwa House Industry (1925) Q4 2024 earnings summary

Executive summary

• FY2024 net sales reached a record ¥5,202,919 million, up 6.0%; operating income fell 5.4% to ¥440,210 million and net income fell 3.1% to ¥298,752 million.

• Excluding the ¥46,515 million retirement-benefit actuarial difference, operating income rose 6.8% to ¥393,694 million.

Financial highlights

• Gross profit rose to ¥992,407 million from ¥955,194 million; SG&A increased to ¥552,197 million from ¥489,824 million.

• Ordinary income declined 6.2% to ¥427,548 million; basic EPS was ¥457.16 versus ¥469.12, and ROE was 12.7% versus 14.3%.

• Operating margin fell to 8.5% from 9.5%; comprehensive income declined 5.1% to ¥334,706 million.

Outlook and guidance

• FY2025 forecast: sales ¥5,250,000 million (+0.9%), operating income ¥400,000 million (-9.1%), ordinary income ¥360,000 million (-15.8%) and net income ¥237,000 million (-20.7%).

• Versus FY2024 excluding the actuarial-difference benefit, FY2025 operating income is forecast up 1.6%; ordinary income down 5.5% and net income down 11.1%.

• FY2026 medium-term targets: sales ¥5,500bn, operating income ¥500bn and net income ¥340bn.

• Priorities include ¥1tn in overseas sales, portfolio management, new businesses, procurement-cost reductions and carbon neutrality initiatives.

• FY2025 capital investment is forecast at ¥480bn and depreciation at ¥123bn; forecasts exclude actuarial-difference amortization.