Daito Trust Construction (1878) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY2025 rose 7.3% year-over-year to ¥1,362.2bn, with operating income up 26.5% to ¥102.8bn and net income attributable to owners/shareholders up 27.8% to ¥76.9bn.

• Strong growth in construction and real estate development segments drove overall performance, while real estate leasing remained stable.

• The business environment saw moderate economic recovery, but inflation, yen depreciation, and sector-specific challenges persisted.

Financial highlights

• Operating income increased by ¥21.5bn year-over-year, mainly from higher completed construction and improved gross profit margin (22.6% to 25.3%).

• Construction business net sales up 13.3% to ¥400.9bn, operating income up 131.7% to ¥36.6bn.

• Real estate development net sales up 80.1% to ¥33.8bn, operating income up 197.3% to ¥3.7bn.

• SG&A expenses rose 5.2% to ¥130.4bn, but the SG&A ratio improved slightly to 9.6%.

• Cash and cash equivalents at period-end were ¥152.5bn, down from ¥229.0bn at the previous year-end.

Outlook and guidance

• No revision to full-year forecasts: net sales/revenue projected at ¥1,830.0bn (+5.7% YoY), operating income ¥120.0bn (+14.5%), net income attributable to owners/shareholders ¥84.0bn (+12.5%).

• Dividend forecast for the year is ¥630 per share.