Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

For the consolidated cumulative period of the third quarter of the fiscal year ending March 2026, net sales amounted to JPY 4,030.292 billion (2.0% increase YoY), and operating income was JPY 363.589 billion (1.8% increase YoY). On the other hand, ordinary income was JPY 335.39 billion (1.4% decrease YoY), and net income attributable to owners of parent for the quarter was JPY 225.356 billion (4.8% decrease YoY). Amidst moderate global economic growth and a declining trend in the domestic housing market, under the Seventh Medium-Term Management Plan targeting sustainable growth, the company is actively promoting overseas business expansion, stock business growth, and digital transformation (DX) initiatives.

Segment Performance Trends

The Detached Housing segment performed well, with net sales of JPY 839.823 billion (9.5% increase YoY) and operating income of JPY 41.089 billion (10.3% increase YoY). The Rental Housing segment saw significant growth with net sales of JPY 1,101.644 billion (13.7% increase YoY) and operating income of JPY 120.608 billion (29.6% increase YoY). The Condominium segment experienced a decline with net sales of JPY 188.338 billion (2.7% decrease YoY) and operating income of JPY 9.036 billion (47.7% decrease YoY). The Commercial Facilities segment posted higher revenue and profit with net sales of JPY 946.734 billion (5.3% increase YoY) and operating income of JPY 128.369 billion (12.0% increase YoY). The Business Facilities segment recorded decreases with net sales of JPY 922.565 billion (15.1% decrease YoY) and operating income of JPY 111.647 billion (19.6% decrease YoY). The Environment & Energy segment achieved growth with net sales of JPY 94.590 billion (1.3% increase YoY) and operating income of JPY 10.991 billion (7.5% increase YoY).

Financial Position and Dividends

As of the end of the third quarter of the fiscal year ending March 2026, total assets were JPY 7,878.242 billion, total liabilities were JPY 5,006.02 billion, and total net assets were JPY 2,821.739 billion. The equity ratio declined to 34.6%, and the D/E ratio stood at 1.15x (1.05x after considering capital nature). The annual dividend forecast remains unchanged at JPY 175.00 (comprising an ordinary dividend of JPY 165.00 plus a 70th-anniversary commemorative dividend of JPY 10.00).

Outlook

There is no change to the consolidated earnings forecast for the fiscal year ending March 2026. Net sales are projected at JPY 5.6 trillion (3.0% increase YoY), operating income at JPY 510 billion (6.6% decrease YoY), ordinary income at JPY 461 billion (10.7% decrease YoY), and net income attributable to owners of parent at JPY 290 billion (10.8% decrease YoY). Excluding the impact of amortization of actuarial differences related to retirement benefits, operating income is expected to increase 14.6% YoY, ordinary income 11.2% YoY, and net income 13.4% YoY.