Starts Corporation (8850) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥54,043 million, up 4.9% year-over-year; operating income rose 18.1% to ¥7,240 million, and net income attributable to shareholders surged 62.9% to ¥7,914 million, driven by steady growth in core businesses and a one-time gain from fixed asset sales.

• All major business segments, including construction, property management, publishing, and hotel/leisure, reported growth except for real estate sales, which saw a significant decline due to the completion of a major condominium project.

• The company maintained a robust financial position with an equity ratio of 51.8% and increased net assets, despite a slight decrease in total assets due to tax payments.

Financial highlights

• Operating income increased 18.1% year-over-year to ¥7,240 million; recurring income rose 14.6% to ¥8,434 million.

• Net income attributable to shareholders was ¥7,914 million, up 62.9% year-over-year, reflecting a gain on fixed asset sales.

• EPS for Q1 was ¥159.34, compared to ¥97.85 in the prior year.

• Comprehensive income rose 55.0% year-over-year to ¥7,640 million.

Outlook and guidance

• Full-year revenue is forecast at ¥228,000 million, down 2.3% year-over-year; operating income is projected at ¥30,700 million, up 0.7%.

• Net income for the year is expected to reach ¥22,400 million, up 1.4% year-over-year; EPS forecast is ¥450.96.

• No changes to previously announced guidance; management notes ongoing uncertainty due to macroeconomic and geopolitical factors.