Daito Trust Construction (1878) Q1 2026 earnings summary

Executive summary

• Consolidated net sales rose 7.4% year-over-year to ¥478.2bn, with operating income up 0.7% to ¥34.1bn; profit attributable to owners was ¥24.1bn, with one source noting a 10.7% increase and another a 0.7% decrease.

• Growth was driven by strong real estate development and leasing, offsetting a decline in construction segment margins.

• The Japanese economy showed gradual recovery, but housing starts fell sharply due to regulatory changes, impacting the construction sector.

Financial highlights

• Operating income increased by ¥0.3bn year-over-year, with notable gains in real estate leasing (+¥1.2bn) and development (+¥1.4bn), while construction operating income fell 21.9%.

• Gross profit increased 5.2% year-over-year to ¥80.57bn, while ordinary profit declined 0.5% to ¥35.1bn.

• SG&A expenses rose 8.7% to ¥46.4bn, mainly due to higher personnel, system, and advertising costs.

• EPS for the quarter was ¥363.61, and BPS was ¥6,955.46.

• Equity-to-asset ratio declined to 37.6% from 39.5% or 38.4% a year earlier.

Outlook and guidance

• Full-year plans project consolidated net sales of ¥2,000bn or ¥1,970,000 million, operating income of ¥120bn or ¥125,000 million, and net income of ¥80bn or ¥90,000 million, with guidance unchanged.

• A 5-for-1 stock split is planned for October 1, 2025, impacting EPS and dividend forecasts.

• Construction and real estate leasing are expected to remain stable, with real estate development continuing strong growth.