Sekisui House (1928) Q1 2025 earnings summary

Executive summary

• Net sales rose 9.7% year-over-year to ¥777,052 million for the first quarter ended April 30, 2024, with operating profit up 28.7% to ¥71,714 million and profit attributable to owners of parent up 20.3% to ¥50,427 million.

• The acquisition of M.D.C. Holdings, Inc. in April 2024 expanded the U.S. homebuilding business to 16 states and 34 cities, accelerating overseas growth.

• Segment reclassification was implemented, with some subsidiaries moved from "Other businesses" to "Urban Redevelopment Business."

Financial highlights

• Ordinary profit increased 33.7% year-over-year to ¥70,995 million.

• Comprehensive income surged 81.6% year-over-year to ¥87,351 million.

• EPS for the quarter was ¥77.83, up from ¥63.33 a year earlier.

• Total assets rose to ¥4,463,376 million, up ¥1,110,578 million from January 31, 2024, mainly due to the MDC acquisition.

• Net assets increased to ¥1,843,130 million, with an equity capital ratio of 40.3%.

Outlook and guidance

• FY2024 net sales forecast revised up to ¥3,875,000 million (+24.7% YoY), operating profit to ¥300,000 million (+10.7%), and profit attributable to owners of parent to ¥209,000 million (+3.3%).

• Annual dividend forecast raised to ¥129 per share, reflecting a 4-yen increase.

• Forecast revisions reflect the impact of the MDC acquisition and updated U.S. business outlook.