Daiwa House Industry (1925) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 2Q were ¥2,630.9 billion, down 0.8% year-over-year; operating income was ¥221.3 billion (-5.6%), and net income attributable to owners was ¥137.7 billion (-11.9%).

• Declines were mainly due to reduced sales of development properties, higher SG&A expenses, and global economic uncertainty, though gross margin improved.

• The company advanced its 7th Medium-Term Management Plan, focusing on evolving its revenue model and optimizing efficiency.

• Upward revision of full-year forecasts: operating income +¥40 billion, ordinary income +¥31 billion, net income +¥17 billion.

• Dividend forecast raised by ¥5, marking the 16th consecutive annual increase, with a commemorative dividend for the 70th anniversary.

Financial highlights

• Gross margin ratio improved to 20.5% (excluding development property sales), up 0.6pt year-over-year.

• Comprehensive income for the period was ¥89,769 million, a 60.8% decrease year-over-year.

• Total assets increased to ¥7,364.7 billion as of September 30, 2025, up from ¥7,049.3 billion at the previous fiscal year-end.

• Net assets rose to ¥2,742.9 billion, with a net assets ratio of 36.0%.

• Cash and cash equivalents at period-end were ¥343.2 billion, down from ¥515.8 billion a year earlier.

Outlook and guidance

• FY2025 full-year net sales forecast at ¥5,600.0 billion, up 3.0% year-over-year.

• Operating income forecast revised to ¥510.0 billion, up ¥40 billion from previous guidance.

• Net income forecast at ¥290.0 billion, up ¥17 billion from previous guidance.

• Dividend per share forecast at ¥175, including a ¥10 commemorative dividend.

• Excluding actuarial differences, operating income is expected to rise 14.6% year-over-year.