Open House Group (3288) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2025 reached ¥643.4 billion (+6.7% YoY), operating profit ¥73.7 billion (+32.4% YoY), and net income ¥46.5 billion (+19.1% YoY, adjusted for prior year one-time gains).

• Upward revision of FY2025 net income forecast to ¥100 billion, marking a record high.

• Segment reorganization eliminated the "Meldia" segment, consolidating it into existing categories.

• Net income attributable to owners of parent declined 10.2% YoY, while comprehensive income decreased 4.9%.

• Achieved significant overperformance in 2Q FY2025, driven by improved profit margins in single-family homes and robust demand across segments.

Financial highlights

• Net sales for 2Q FY2025: ¥643.4 billion (+6.7% YoY).

• Operating profit: ¥73.7 billion (+32.4% YoY), operating margin improved to 11.5%.

• Gross profit increased from ¥97,894 million to ¥118,827 million YoY.

• Equity ratio at 37.3%, net D/E ratio at 0.6x, indicating a healthy balance sheet.

• Cash and cash equivalents at period end: ¥412.6 billion.

Outlook and guidance

• FY2025 net sales forecast revised to ¥1.31 trillion (+1.1% YoY).

• Operating profit forecast raised to ¥143 billion (+20.1% YoY), net income to ¥100 billion (+7.6% YoY), and EPS ¥860.35.

• Dividend per share increased to ¥178, and share buybacks raised to ¥25 billion.

• Three-year cumulative net profit target raised to ¥300 billion, with a total return ratio of 40%+.

• Dividend forecast for FY2025 is ¥178.00 per share, up from ¥166.00 in FY2024.