Starts Corporation (8850) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 2024 rose 2.5% year-over-year to ¥167,579 million, with operating profit up 11.7% and net income attributable to shareholders up 25.2% to ¥18,238 million.

• Growth was driven by steady gains in property management, leasing, and hotel/leisure segments, offsetting declines in construction and real estate sales.

• The group expanded its managed property portfolio and continued to grow its domestic and international network, with notable new hotel openings and service expansions.

Financial highlights

• Operating profit reached ¥23,539 million, up 11.7% year-over-year; ordinary profit was ¥24,826 million, up 10.7%.

• Net income attributable to shareholders was ¥18,238 million, a 25.2% increase year-over-year.

• Total assets at December 31, 2024, were ¥327,345 million, with equity ratio improving to 52.9%.

• Cash and equivalents increased to ¥93,091 million, with operating cash flow of ¥18,072 million for the period.

Outlook and guidance

• Full-year revenue is forecast at ¥228,000 million (down 2.3% year-over-year), with operating profit of ¥30,700 million (up 0.7%) and net income of ¥22,400 million (up 1.4%).

• No changes to previously announced guidance; management expects steady progress toward targets.

• Annual dividend forecast is ¥110 per share.