KATITAS (8919) Q4 2025 earnings summary

Executive summary

• Achieved record FY2024 operating profit, up 12.2% YoY, surpassing projections by 1.6%, with net sales rising 2.2% to ¥129.5 billion and 7,372 homes sold (+2.8% YoY).

• Net income grew 12.4% YoY to ¥9.55 billion; adjusted operating profit (excluding tax dispute) reached ¥16.16 billion (+9.5% YoY).

• Gross profit margin improved by 1.8pt YoY to 23.7%, driven by product mix and cost initiatives.

• Inventory shortages at FY2024 start were resolved, with property purchases up 18.8% YoY.

• The sole reportable segment is used housing refurbishing and remodeling, accounting for over 90% of net sales.

Financial highlights

• Total assets increased to ¥83.3 billion; equity-to-asset ratio improved to 54.9%.

• Cash and deposits decreased 14.8% YoY to ¥18.8 billion; net cash from operating activities dropped 87.8% due to higher inventories and tax payments.

• Dividend per share increased to ¥56.0 (payout ratio 45.8%).

• 4Q FY2024 operating profit up 1.4% YoY; gross profit margin in 4Q improved to 24.7% (+2.4pt YoY).

• Inventory real estate at year-end up 17.8% YoY; ROA (LTM) stable at 17.7%.

Outlook and guidance

• FY2025/2026 targets: 12% growth in properties sold, 14% growth in operating profit, and 13.1% increase in net income; net sales forecast at ¥146 billion (+12.7%).

• Dividend policy raised to 50%+ payout ratio; FY2025/2026 annual dividend forecast at ¥70/share.

• Targeting 10,000 homes sold and ¥20 billion operating profit by FY2028.

• Focus on expanding supply capacity, sales force, and product diversification.

• Minimal expected impact from inflation, interest rates, or US tariffs due to domestic focus and cost structure.