Daito Trust Construction (1878) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q FY2026 reached ¥959.5bn, up 5.8% year-over-year, but operating income fell 2.4% to ¥69.3bn; net income attributable to owners was ¥49.9bn, a 3.3% increase year-over-year.

• Orders received totaled ¥273.9bn, down 5.3% year-over-year, with a higher cancellation ratio and increased average order price.

• The company focused on human capital management, order acquisition, and profitability in construction, while expanding real estate development.

• The Japanese economy showed resilience with wage increases and capital investment recovery, but high energy/material costs and yen depreciation created uncertainty.

Financial highlights

• Gross profit for 2Q FY2026 was ¥163.3bn, with a gross profit margin of 17.0%; SG&A expenses rose 10.1% year-over-year to ¥93.9bn.

• Ordinary profit decreased 3.3% year-over-year to ¥71.4bn; comprehensive income dropped 17.8% to ¥45.3bn.

• Total assets increased to ¥1,321.2bn at the end of September 2025, with an equity ratio of 37.0%.

• EPS for the period was ¥150.41 (post-stock split).

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥1,970.0bn, operating income ¥125.0bn, and net income ¥90.0bn.

• Annual dividend per share planned at ¥685 (pre-stock split) or ¥68.60 (post-split), with a payout ratio of 50%.

• Medium-term plan targets FY2026 net sales of ¥2tn, operating income of ¥140bn, and ROE of 20%.