Fiscal Year Ending March 2026 Q3 Financial Results

Overview of Performance

In the consolidated financial results for the third quarter of the fiscal year ending March 2026, revenue amounted to JPY 779,139 million, nearly flat year-over-year, while gross profit increased to JPY 300,352 million, improving the gross profit margin to 38.5%. Operating income grew to JPY 238,379 million compared to the same period last year, maintaining a high operating margin of 30.6%. Ordinary income was JPY 235,886 million, special income was JPY 21,683 million, and special losses were JPY 6,679 million. Segment-wise, operating income in the leasing business increased to JPY 159,372 million, and the sales business also performed well at JPY 68,741 million. The housing business declined to JPY 8,942 million, while the Step business increased to JPY 18,754 million.

Financial Position and Outlook

Total assets increased to JPY 7,093,285 million and net assets rose to JPY 2,415,718 million, with the equity ratio also improving. Consolidated interest-bearing debt slightly increased to JPY 4,016,327 million, but net interest-bearing debt remained stable at JPY 3,935,743 million. The full-year revenue forecast for the fiscal year ending March 2026 is JPY 1,050,000 million, with operating income projected at JPY 295,000 million, expecting an operating margin of 28.1%. Due to segment reclassifications, condominium management and interior sales businesses have been moved to the sales segment, so future performance comparisons should be made with caution.