Daiwa House Industry (1925) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 results in FY2024 with net sales of ¥1,287.2 billion (+6.0% YOY), operating income of ¥121.8 billion (+30.9% YOY), and net income of ¥91.4 billion (+52.3% YOY), partly due to cross-shareholding sales.

• Growth driven by strong development property sales, robust US single-family housing, and expansion of overseas and stock businesses.

• Comprehensive income increased 60.0% YOY to ¥118.1 billion.

• Launched BIZ Livness brand for non-residential real estate stock business.

• Upward revision of FY2024 forecasts for net sales, operating income, and net income from initial guidance.

Financial highlights

• Gross profit margin improved to 20.6% from 19.1% YOY; gross profit rose to ¥265.3 billion.

• Total assets increased to ¥6,723.9 billion (+2.9% from Mar 2024); net assets rose to ¥2,590.6 billion with a net assets ratio of 37.2%.

• EPS for Q1 was ¥142.84, up 56.7% YOY.

• Cash and cash equivalents at period end were ¥552.3 billion, up ¥144.8 billion YOY.

• Depreciation for the quarter was ¥30.7 billion; amortization of goodwill ¥2.9 billion.

Outlook and guidance

• FY2024 revised forecasts: net sales ¥5,350 billion (+2.8% YOY), operating income ¥430 billion (+7.5% YOY), net income ¥260 billion (-13.0% YOY), basic EPS ¥406.36.

• Excluding prior year actuarial difference amortization, operating income is expected to rise 9.2% and net income to decline 2.5%.

• Segment guidance raised for Rental Housing, Condominiums, and Logistics/Business & Corporate Facilities.

• Annual dividend forecast raised to ¥145/share; payout ratio expected at 35.7%.