Open House Group (3288) Q4 2025 earnings summary

Executive summary

• Achieved record-high net sales of ¥1,336.4 billion and net income of ¥100.6 billion in FY2025, with net income surpassing ¥100 billion for the first time, up 8.3% year-over-year.

• Operating profit rose 22.5% year-over-year to ¥145.9 billion, driven by improved gross profit margins, especially in the single-family home segment.

• The business benefited from strong demand in single-family homes and U.S. real estate, while the condominium segment saw lower sales but improved margins.

• Upward revision of the three-year cumulative net income target to ¥305.5 billion, reflecting strong performance and outlook.

• Segment reorganization was implemented, consolidating Meldia into other business lines.

Financial highlights

• Net sales increased 3.1% year-over-year; operating profit margin improved to 10.9%.

• Profit attributable to owners of parent (excluding gain on negative goodwill) grew 19.2% year-over-year.

• Equity ratio at 38.1% and net D/E ratio at 0.6x, indicating a sound financial position.

• Annual dividend per share increased to ¥178, with a share buyback of approximately ¥25 billion.

• Basic earnings per share rose to ¥875.20 from ¥782.60.

Outlook and guidance

• FY2026 forecasts: net sales of ¥1,485.0 billion (+11.1% YoY), operating profit of ¥170.0 billion (+16.5% YoY), and net income of ¥112.0 billion (+11.3% YoY).

• Dividend per share planned to rise to ¥188, with continued share buybacks and cancellation.

• Shareholder return policy updated to a total return ratio of 40% or more.

• Continued focus on portfolio management and shareholder returns.