Daiwa House Industry (1925) Q4 2026 earnings summary

Executive summary

• Achieved record highs in net sales, operating income, ordinary income, and net income for FY2025, driven by a large-scale land sale in the U.S. and steady growth in rental housing, commercial facilities, and hotel businesses.

• Net sales rose 2.6% year-over-year to ¥5,576.9 billion, with operating income up 12.6% to ¥614.9 billion and net income attributable to owners up 7.8% to ¥350.6 billion.

• Achieved final-year targets of the 7th Medium-Term Management Plan one year ahead of schedule.

• SG&A expenses rose significantly year-over-year due to personnel system reforms and salary revisions, but gross profit margin improved due to measures addressing rising material and labor costs.

• Acquired Sumitomo Densetsu Co., Ltd. as a consolidated subsidiary in March 2026.

Financial highlights

• Net sales: ¥5,576.8 billion (+2.6% YoY); Operating income: ¥614.8 billion (+12.6% YoY); Net income: ¥350.5 billion (+7.8% YoY).

• Gross profit margin improved to 22.3% (+2.0pt YoY); Operating margin rose to 11.0% (+0.9pt YoY).

• Total assets increased to ¥8,412.4 billion (+19.3% YoY); Net assets rose to ¥3,022.2 billion (+11.2% YoY).

• Operating income included a ¥115.7 billion gain from actuarial differences in retirement benefits; excluding this, operating income was ¥499.2 billion (+12.2% YoY).

• Cash and cash equivalents at year-end were ¥424.6 billion, up ¥97.6 billion YoY.

Outlook and guidance

• FY2026/2027 forecasts: Net sales ¥5,800.0 billion (+4.0% YoY), Operating income ¥400.0 billion (-34.9% YoY), Net income ¥227.0 billion (-35.2% YoY).

• Excluding actuarial differences, expected YoY declines are: operating income -19.9%, ordinary income -25.0%, net income -16.4%.

• Dividend per share to increase by ¥1 to ¥176, marking the 17th consecutive year of dividend increases; stock split planned (2-for-1) effective October 1, 2026.

• Guidance incorporates risks from Middle East instability, including higher material costs and potential construction delays.

• Announcement of the 8th Medium-Term Management Plan postponed due to business environment uncertainty.