Sumitomo Forestry (1911) Q2 2026 earnings summary

Executive summary

• Net sales rose 17.5% year-over-year in Q2 FY12/26 to ¥1,263,248 million, driven by the consolidation of TPH/Tri Pointe Homes and growth in overseas and Australian housing.

• Despite higher sales, recurring income and net income declined due to increased SG&A expenses, higher costs, and deteriorating earnings in U.S. housing and real estate.

• Comprehensive income rebounded to ¥127,877 million from a prior loss, mainly due to foreign currency translation gains.

• Full-year net sales forecast was revised upward, but recurring income and net income forecasts were revised downward.

Financial highlights

• Q2 FY12/26 net sales: ¥1,263.2B (+17.5% YoY); gross profit: ¥277.7B (+9.0% YoY); SG&A expenses rose to ¥217.7B.

• Operating income fell 28.4% YoY to ¥59.9B; recurring income dropped 43.6% YoY to ¥49.8B.

• Net income decreased 45.5% YoY to ¥26.9B; EPS was ¥43.85, down from ¥80.38 (adjusted for stock split).

• Full-year forecast: net sales ¥2,950.0B (+30.1% YoY), recurring income ¥115.0B (-34.2% YoY), net income ¥60.0B (-43.7% YoY), EPS forecast ¥97.85.

• Total assets increased to ¥3,590.0B as of June 30, 2026; equity ratio declined to 30.5%.

Outlook and guidance

• Net sales forecast revised upward by ¥360.0B, but recurring and net income forecasts revised downward by ¥45.0B and ¥35.0B, respectively.

• FX assumptions unchanged from first-half averages.

• Australian housing expected to outperform, while U.S. housing faces margin pressure.

• Full-year operating income projected at ¥143.0B (down 15.2%).