KATITAS (8919) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months of FY2025 rose 16.3% year-over-year to ¥112,414 million, with operating profit up 31.1% to ¥14,248 million and net income up 31.6% to ¥9,486 million, driven by record property sales and favorable market conditions.

• The number of properties sold increased 13.7% year-over-year to 6,284, supported by ample inventory, strategic purchasing, and strong demand for affordable, refurbished homes.

• Inventory of real estate for sale and in process increased by 25.5% compared to the previous fiscal year-end, supporting stable growth.

• Gross profit margin remained strong at 23.5%, with adjusted gross profit margin at 24.6%, reflecting resilience despite a slight decline due to sales mix changes and accounting adjustments from consumption tax litigation.

• SG&A expenses rose 4.1% year-over-year, mainly due to higher personnel costs and increased incentives, but operating profit margin improved to 12.7%.

Financial highlights

• Net sales for 3Q FY2025 increased 22.6% year-over-year to ¥39,998 million, with operating profit up 29.4% to ¥5,237 million.

• ROE (LTM) improved to 25.3%, up 2.2 points year-over-year.

• EPS for 3Q YTD reached ¥121.29, up from ¥92.29 in the prior year.

• Total assets as of December 31, 2025, were ¥90,566 million, up from ¥83,329 million at the previous fiscal year-end.

• Net assets increased to ¥50,073 million, with an equity-to-asset ratio of 55.3%.

Outlook and guidance

• Full-year net sales forecast is ¥147,500 million (up 13.9% year-over-year), with operating profit of ¥17,800 million (up 25.2%) and profit attributable to owners of parent of ¥11,900 million (up 24.6%).

• Full-year operating profit is expected to slightly exceed the revised forecast of ¥17,800 million, with annual growth of 10% targeted for the next fiscal year.

• The company aims to achieve ¥20,000 million in operating profit ahead of schedule by FY2027 and maintain double-digit growth.

• Annual dividend forecast is ¥78.00 per share, up from ¥56.00 in the previous year, reflecting a payout ratio above 50%.