Leopalace21 (8848) Q2 2025 earnings summary

Executive summary

• Net sales for H1 FY2026 rose 2.7% year-over-year to JPY 222,010 million, driven by higher average unit rent and stable occupancy rates.

• Operating profit increased 15.0% year-over-year to JPY 20,048 million, with recurring profit up 13.7% to JPY 19,027 million.

• Net income attributable to shareholders dropped 55.9% year-over-year to JPY 4,678 million due to JPY 10,068 million in extraordinary losses from cancellation of treasury stock acquisition rights.

• EBITDA for H1 FY2026 was JPY 21,655 million, up 12.4% year-over-year.

Financial highlights

• Gross profit margin improved to 21.0% from 18.5% year-over-year.

• Free cash flow increased to JPY 18,430 million, up JPY 8,520 million year-over-year.

• Cash and cash equivalents at period end were JPY 39,347 million, down JPY 35,872 million from the previous year.

• Equity ratio declined to 18.6% from 37.5% at the previous fiscal year-end.

Outlook and guidance

• Full-year FY2026 net sales forecast revised up to JPY 444,100 million (+0.6%), operating profit to JPY 34,800 million (+7.4%), and net income to JPY 13,000 million (+12.1%) compared to previous guidance.

• Net income per share forecast at JPY 37.80 for FY2026.