Daito Trust Construction (1878) Q2 2025 earnings summary

Executive summary

• Consolidated net sales for 2Q FY2025 rose 8.4% year-over-year to ¥907.3bn, with operating income up 36.6% to ¥71.1bn and net income attributable to owners up 35.4% to ¥51.1bn.

• All major business segments contributed to growth, with construction and real estate development showing the strongest gains.

• The company revised its full-year forecast upward, now expecting revenue of ¥1,830bn and net income of ¥84bn, both higher than previous guidance.

Financial highlights

• Construction business net sales increased 16.2% YoY to ¥267.3bn, with operating income up 190.7% to ¥26.3bn and gross profit margin rising to 25.5%.

• Real estate leasing net sales grew 3.1% YoY to ¥577.4bn, though operating income declined 2.1% to ¥43.3bn.

• Real estate development net sales more than doubled YoY to ¥24.7bn, with operating income up 233.2% to ¥2.9bn.

• Other businesses saw net sales rise 8.0% YoY to ¥37.9bn and operating income up 30.5% to ¥6.4bn.

• EPS for 2Q FY2025 was ¥781.86, up from ¥570.54 a year earlier.

• Total assets at end-September 2024 were ¥1,112.2bn, up ¥32.2bn from March 2024; equity ratio was 40.4%.

• Interim dividend set at ¥287 per share, with full-year dividend forecast at ¥630 per share.

Outlook and guidance

• Full-year consolidated net sales forecast revised upward to ¥1,830.0bn, operating income to ¥120.0bn, and net income to ¥84.0bn.

• Annual dividend forecast raised to ¥630 per share, maintaining a 50% payout ratio.

• Construction business gross profit margin for the full year expected at 25.0%.