Open House Group (3288) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2025 reached ¥316.1 billion, up 3.7% year-over-year, with operating profit at ¥34.4 billion, up 5.2% year-over-year.

• Ordinary profit rose to ¥34.7 billion, up 7.4% year-over-year.

• Profit attributable to owners of parent was ¥22.9 billion, down 30.5% year-over-year due to the absence of prior-year extraordinary gains.

• Comprehensive income increased 7.5% year-over-year to ¥33,143 million.

• Improved profit margins in single-family homes and strong US real estate performance contributed to results.

Financial highlights

• Gross profit improved to ¥57,031 million from ¥52,383 million year-over-year.

• Operating profit margin improved to 10.9% from 10.7% year-over-year.

• Basic earnings per share dropped to ¥196.73 from ¥274.11 year-over-year.

• SG&A expenses increased to ¥22.7 billion, 7.2% of net sales.

• Total assets increased to ¥1,317,010 million, up ¥34,919 million from the previous fiscal year-end.

Outlook and guidance

• FY2025 forecasts net sales of ¥1.3 trillion and operating profit of ¥130 billion, targeting a 10% operating profit margin.

• Net income forecasted at ¥82.0 billion, with annual dividend per share of ¥168.

• Revenue and profit expected to increase, with operating profit margin returning to double digits.

• No revisions to previously announced forecasts.