Sun Frontier Fudousan (8934) Q3 2026 earnings summary

Executive summary

• 9M FY2026 net sales rose 27.5% to ¥77.144bn, operating profit 43.4% to ¥17.165bn, ordinary profit 41.5% to ¥16.154bn and parent profit 32.8% to ¥10.434bn.

• Sales and profit grew across segments; operating and ordinary profit reached 72.0% and 71.8% of full-year forecasts, respectively.

• Stock-type businesses achieved record results; recurring earnings covered 131% of fixed costs and interest at Q3-end.

Financial highlights

• Gross profit increased 34.6% to ¥26.181bn against SG&A growth of 20.6%; ordinary profit margin improved 2.1 percentage points to 20.9%.

• Stock-type business sales were ¥33.2bn, up 39% YoY, and gross profit was ¥11.960bn, up 56%; progress reached 93% of full-year sales and 110% of gross profit plans.

• Flow-type sales and gross-profit progress were 74.5% and 80.3%; property sales were timed flexibly, with Q3 sales at higher margins than planned.

• Total assets were ¥250.219bn at Dec. 2025, up 14.7% from Mar. 2025; equity was ¥108.672bn, up 6.4%.

• Inventory increased ¥30.489bn from Mar. 2025; cash and deposits declined ¥8.399bn to ¥36.5bn.

Outlook and guidance

• FY2026 forecast unchanged: net sales ¥117.0bn, operating profit ¥23.84bn, ordinary profit ¥22.5bn and parent profit ¥15.5bn.

• FY2028 targets are net sales ¥135bn and ordinary profit ¥27bn; FY2035 targets are ¥300bn and ¥60bn, respectively.

• Medium-term targets include ROE of at least 14% and an equity ratio around 45%; FY2026 forecast is 14.2% ROE and 20.4% ordinary profit margin.

• Three-year plan targets 35% total sales growth, with 21% in Flow-type and 53% in Stock-type businesses; Stock-type share is targeted to rise to 35%.

• Hotel expansion includes seven planned openings and 1,392 rooms next fiscal year; 16 hotels with 2,539 rooms were scheduled, under construction or in planning, with a 10,000-room operating target by 2033.