Daito Trust Construction (1878) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 9.1% year-over-year to ¥445.1bn, with operating income up 40.3% to ¥33.8bn and net income attributable to owners up 33.9% to ¥24.2bn.

• Significant growth in construction and real estate development segments drove overall performance.

• Orders received increased 16.5% year-over-year, with a notable rise in average order price and a lower cancellation ratio.

• The company implemented a new mid-term plan focused on revitalizing local communities and expanded its reporting segments.

Financial highlights

• Gross profit rose 16.9% year-over-year to ¥76.6bn, and operating margin improved to 7.6%.

• Construction business net sales up 20.9% to ¥126.0bn, operating income up 1,491.8% to ¥10.8bn.

• Real estate development business net sales up 105.2% to ¥11.5bn, operating income up 266.3% to ¥1.4bn.

• Real estate leasing business net sales up 2.9% to ¥287.5bn, but operating income down 3.9% to ¥22.5bn.

• EPS for Q1 was ¥371.63, up from ¥270.53 a year earlier.

Outlook and guidance

• No changes to full-year guidance: revenue ¥1,820bn (+5.1% YoY), operating profit ¥110bn (+4.9% YoY), net income ¥76bn (+1.8% YoY), and annual dividend forecast of ¥1,150 per share.

• Construction business full-year net sales planned at ¥530bn, operating income margin of 8.3%.

• Real estate leasing business full-year net sales planned at ¥1,160bn, operating income margin of 6.3%.

• Real estate development business full-year net sales planned at ¥50bn, operating income margin of 4.0%.