Daiwa House Industry (1925) Q1 2026 earnings summary

Executive summary

• Net sales reached a record-high ¥1,292.1 billion for FY2025 1Q, up 0.4% year-over-year, marking five consecutive years of growth.

• Gross profit margin improved by 0.6pt to 21.2% year-over-year, but operating income declined by 3.1% to ¥118.1 billion due to higher SG&A expenses.

• Net income attributable to owners fell 16.6% year-over-year to ¥76.2 billion, and comprehensive income dropped 68.9% mainly due to foreign currency translation losses.

• Rental Housing Business and development property sales were key contributors to performance.

• The company is focusing on evolving its revenue model, optimizing management efficiency, and strengthening its management base.

Financial highlights

• Net sales: ¥1,292.1 billion (+0.4% year-over-year).

• Operating income: ¥118.1 billion (-3.1% year-over-year).

• Net income attributable to owners: ¥76.2 billion (-16.6% year-over-year).

• EPS: ¥123.25 (-13.7% year-over-year).

• Gross profit: ¥274.1 billion (21.2% margin, +0.6pt year-over-year).

Outlook and guidance

• FY2025 full-year net sales forecast: ¥5,600.0 billion (+3.0% year-over-year).

• Operating income forecast: ¥470.0 billion (-14.0% year-over-year).

• Net income forecast: ¥273.0 billion (-16.0% year-over-year).

• Excluding actuarial differences, operating income is expected to rise 5.6%, ordinary income 3.7%, and net income 6.7% year-over-year.

• Annual dividend forecast raised to ¥170 per share, including a ¥10 commemorative dividend for the 70th anniversary.