Sekisui House (1928) Q2 2026 earnings summary

Executive summary

• Achieved record-high net sales and operating profit in FY2025, driven by strong domestic performance and property sales, despite a downturn in the U.S. homebuilding business and lower overseas margins.

• Domestic business showed steady growth, while overseas business, especially in the U.S., faced challenges from high mortgage rates, economic uncertainty, and integration costs.

• Comprehensive income turned negative due to foreign currency translation losses.

• Continued focus on stable growth in Japan, proactive overseas expansion, and significant investments in human capital, DX, and technical capabilities.

• Launched JUNOPARK, an experiential housing education facility, and advanced initiatives in ESG management and innovation.

Financial highlights

• FY2025 net sales revised to ¥4,331.0 bn (up from ¥4,058.5 bn in FY2024), with operating profit at ¥340.0 bn (up from ¥331.3 bn); six-month net sales up 8.4% YoY, but operating profit down 1.1%.

• EPS maintained at ¥357.97 for FY2025; six-month EPS at ¥156.76, down from ¥189.79 YoY.

• Dividends per share increased to ¥144, marking the 14th consecutive year of increases; FY2026 forecast maintained at ¥144.

• Overseas business operating profit declined by ¥71.5 bn due to U.S. market deterioration and lower margins.

• Operating profit margin decreased to 7.7% from 8.5% YoY.

Outlook and guidance

• FY2025 guidance projects continued record-high net sales and operating profit, with stable EPS and dividend payout ratio of 40.2%; full-year net sales forecast revised down 3.8%.

• ROE expected to remain around 12%, with a focus on maintaining financial soundness and growth investments.

• U.S. homebuilding business expected to recover gradually, with integration of MDC and technology transfer initiatives underway.