Sekisui House (1928) Q2 2027 earnings summary

Executive summary

• Revised FY2026 plan projects net sales of ¥4,260.0 bn and operating profit of ¥350.0 bn, maintaining profit targets despite rising material costs and overseas challenges.

• Net sales for the six months ended July 31, 2026, were ¥1,965,644 million, down 2.5% year-over-year, while operating profit rose 16.0% to ¥180,370 million and ordinary profit increased 23.8% to ¥169,081 million.

• Profit attributable to owners of parent was ¥125,053 million, up 23.1% year-over-year, reflecting improved profitability despite lower sales.

• Domestic businesses are expected to exceed initial profit plans, while U.S. homebuilding faces headwinds but multifamily property sales progress steadily.

• Dividend per share is set at ¥145, marking the 15th consecutive year of increases.

Financial highlights

• FY2026 revised plan: net sales ¥4,260.0 bn (down ¥93.0 bn from initial), operating profit ¥350.0 bn (unchanged), ordinary profit ¥316.0 bn (up ¥2.0 bn), profit attributable to owners ¥224.0 bn (up ¥6.0 bn).

• Gross profit increased to ¥428,791 million from ¥398,456 million year-over-year.

• EPS revised to ¥345.55 (up ¥9.25 from initial plan).

• ROE remains at 10.1%.

• Dividend payout ratio at 42.0%.

Outlook and guidance

• Full-year net sales forecast revised down to ¥4,260,000 million (down 2.1% from previous forecast), with operating profit unchanged at ¥350,000 million.

• Ordinary profit forecast slightly raised to ¥316,000 million, and profit attributable to owners of parent to ¥224,000 million.

• All domestic segments expected to exceed profit plans, with upward revisions for ordinary profit and net profit.

• U.S. homebuilding business revised downward due to lower deliveries and higher costs, but multifamily and master-planned community segments show resilience.

• Continued focus on growth investments balanced with financial soundness.