Sun Frontier Fudousan (8934) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 net sales rose 74.2% YoY to ¥27,319 million; operating profit increased 112.4% to ¥6,021 million and net income rose 111.8% to ¥3,978 million, supported by large property sales and hotel operations.

• Full-year forecasts remained unchanged; Q1 progress was 23.4% for net sales, 25.3% for operating profit and 25.7% for ordinary profit.

Financial highlights

• Gross profit increased 75.9% YoY to ¥9,134 million; ordinary profit rose 111.1% to ¥5,783 million.

• SG&A rose ¥753 million YoY to ¥3,113 million, reflecting human-capital and systems investment and higher hotel-opening expenses.

• Stock-type businesses excluding property sales recorded Q1 net sales of ¥10.2bn, up 28% YoY, and gross profit of ¥3.9bn, up 36%; both reached record highs.

• Signed property deals scheduled for settlement lifted progress against the full-year property-sale gross profit forecast to 43.9%.

Outlook and guidance

• FY2026 guidance remained unchanged: net sales ¥117,000 million, operating profit ¥23,840 million, ordinary profit ¥22,500 million, net income ¥15,500 million and EPS ¥319.37.

• FY2028/3 medium-term targets are net sales of ¥135bn, ordinary profit of ¥27bn and ROE over 14%; the equity ratio target is around 45%.

• Annual dividend forecast is ¥76 per share, comprising ¥38 interim and ¥38 year-end; FY2025 annual dividend was ¥66.

• Three-year plan projects flow-type net sales growth of 21% and stock-type growth of 53%, with the stock-type share targeted to rise from 30% to 35%.