Sekisui House (1928) Q2 2025 earnings summary

Executive summary

• Achieved record high net sales and operating profit for 2Q FY2024, driven by strong domestic and U.S. performance and the consolidation of M.D.C. Holdings in April 2024.

• All business models contributed positively, prompting an upward revision of full-year guidance.

• FY2024 plan revised upward, with net sales expected to reach ¥4 trillion for the first time, reflecting strong U.S. homebuilding and urban redevelopment.

• Temporary extraordinary losses are expected from the MDC acquisition, but profit and dividend forecasts remain unchanged.

Financial highlights

• FY2024 net sales revised to ¥4,000.0 bn (+¥125.0 bn from June plan); operating profit revised to ¥320.0 bn (+¥20.0 bn); ordinary profit to ¥288.0 bn (+¥15.0 bn).

• 2Q FY2024 net sales: ¥1,859.1 bn (+27.1% YoY); operating profit: ¥124.9–157.1 bn (+25.8% YoY); operating margin: 8.5%.

• EPS forecast at ¥322.56; ROE at 11.7%; ROA at 8.2%; annual dividend per share at ¥129 (payout ratio 40%).

• Profit attributable to owners of parent grew 33.0% to ¥122.9 bn; gross profit margin slightly decreased to 19.4%.

• Extraordinary income included an ¥18.9 bn gain on sale of investment securities; extraordinary losses rose due to MDC acquisition costs.

Outlook and guidance

• FY2024 plan revised upward due to strong U.S. homebuilding and urban redevelopment; net sales and operating profit targets increased.

• Costs related to MDC acquisition (approx. ¥14 bn) to be recorded as extraordinary losses; PPA impact for next year expected to be less than initial estimates.

• Dividend forecast raised; no share repurchases planned for FY2024.

• Overseas business, especially U.S. homebuilding, and urban redevelopment are key growth drivers.