Sumitomo Forestry (1911) Q3 2025 earnings summary

Executive summary

• Net sales increased 9.5% year-over-year to ¥1,633.9 billion for Q3 FY12/2025, driven by strong domestic and Australian housing, but operating income fell 12.1% and net income dropped 17.0% due to U.S. housing weakness and higher costs.

• Comprehensive income decreased sharply to ¥51.41 billion, down 54.9% year-over-year.

• The acquisition of Metricon in Australia and robust domestic custom-built housing orders contributed significantly to growth.

Financial highlights

• Gross profit rose 4.1% year-over-year to ¥383.03 billion, but operating income fell to ¥122.34 billion, down 12.1%.

• Recurring income declined 9.2% to ¥126.72 billion, and recurring income margin decreased from 9.4% to 7.8% year-over-year.

• Net income attributable to owners was ¥69.06 billion, a 17.0% decrease year-over-year.

• Net income per share was ¥112.68, down from ¥135.55 year-over-year (adjusted for stock split).

• FX rates impacted results, with USD/JPY averaging 151.18 and AUD/JPY at 100.10.

Outlook and guidance

• Full-year forecast remains unchanged, projecting net sales of ¥2,320.0 billion and net income of ¥96.0 billion.

• Operating income projected at ¥164 billion (down 14.1%), recurring income at ¥170 billion (down 15.7%), and net income per share forecast at ¥156.63 (adjusted for stock split).

• Australian and domestic housing expected to offset continued U.S. housing challenges.