Sekisui House (1928) Q1 2026 earnings summary

Executive summary

• Net sales reached a record ¥894.0 billion, up 15.1% year-over-year, driven by the consolidation of MDC from April 2024.

• Operating profit declined 15.9% year-over-year to ¥60.2 billion due to higher SG&A and weaker overseas performance.

• Profit attributable to owners of parent fell 33.8% year-over-year to ¥33.3 billion; EPS was ¥51.49.

• Comprehensive income turned negative at ¥(30.7) billion, mainly due to foreign currency translation losses.

• Built-to-Order and Supplied Housing businesses in Japan showed stable growth, while U.S. homebuilding remained weak amid market uncertainty.

Financial highlights

• Gross profit increased 11.5% year-over-year to ¥179.6 billion, but gross margin declined by 0.6 points to 20.1%.

• SG&A expenses rose 33.6% year-over-year to ¥119.3 billion.

• Ordinary profit dropped 34.1% year-over-year to ¥46.8 billion.

• Total assets decreased to ¥4,726.5 billion, while net assets fell to ¥1,926.6 billion.

• Capital adequacy ratio declined to 39.9% from 40.8% at the previous fiscal year-end.

Outlook and guidance

• FY2025 full-year net sales forecast is ¥4,500.0 billion (+10.9%), with operating profit projected at ¥362.0 billion (+9.2%).

• Profit attributable to owners of parent is expected to reach ¥232.0 billion (+6.6%), with EPS of ¥357.97.

• Overseas business is forecast to grow 35.9% in net sales and 58.3% in operating profit for FY2025.

• Annual dividend forecast raised to ¥144.00 per share.

• Management notes that forward-looking statements are subject to risks from global economic and market conditions.