KATITAS (8919) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY2025 rose 12.4% year-over-year to ¥35,063 million, with operating profit up 39.4% to ¥4,331 million and net income up 39.5% to ¥2,857 million, driven by strong demand for affordable, renovated homes and record-high sales.

• Properties sold increased 10.6% to 1,976 units, and properties purchased rose 21.7% to 2,163 units.

• Gross profit margin improved to 24.0% (adjusted: 24.8%), despite a negative impact from a consumption tax-related litigation ruling.

• Inventory of real estate increased 18.1% year-over-year, ensuring capacity for continued double-digit growth.

• The company continues to expand its sales force and invest in productivity improvements, with new graduate hires up and turnover rates stable.

Financial highlights

• Operating profit for 1Q FY2025 reached ¥4,331 million, up 39.4% year-over-year; net income rose 39.5% to ¥2,857 million.

• Adjusted gross profit margin (excluding tax litigation impact) was 24.8%, up 2.4pt year-over-year.

• EPS for 1Q FY2025 was ¥36.55, up 39.1% year-over-year.

• ROE (LTM) improved to 23.9%, up 1.8pt year-over-year; equity-to-asset ratio increased to 56.8%.

• Inventory real estate grew to ¥64,998 million, up 18.1% year-over-year.

Outlook and guidance

• FY2025 full-year guidance: net sales ¥146,000 million (+12.7%), operating profit ¥16,200 million (+13.9%), and net income ¥10,800 million (+13.1%), with EPS forecast at ¥138.11.

• Dividend payout ratio set at 50% or more, with annual dividend forecast at ¥70 per share; interim dividend forecast raised to ¥35 per share.

• Management expects continued strong demand for low-priced homes, minimal impact from rising interest rates or U.S. tariffs, and stable cost environment.

• Inventory of newly built homes may remain below expectations, but ample inventory supports growth targets.

• No changes to previously announced earnings forecasts.