Daiwa House Industry (1925) Q4 2025 earnings summary

Executive summary

• Net sales reached ¥5,434.8 billion (+4.5% YoY), operating income ¥546.2 billion (+24.1% YoY), and net income ¥325.0 billion (+8.8% YoY), all record highs.

• Operating income excluding actuarial differences was ¥445.0 billion (+13.0% YoY), with actuarial gains of ¥101.2 billion impacting results.

• Growth was driven by strong U.S. single-family houses and rental housing, while condominiums declined due to consolidation changes.

• Net income excluding actuarial differences was ¥255.8 billion (-4.0% YoY), affected by prior year one-time gains and higher extraordinary losses.

• Strong U.S. performance and development property sales offset negative impacts from changes in consolidation scope.

Financial highlights

• Gross profit rose to ¥1,101.0 billion (+10.9% YoY), with gross margin at 20.3%.

• Total assets grew to ¥7,049.3 billion (+7.9%), net assets to ¥2,716.7 billion (+7.6%).

• Book value per share increased to ¥4,226.17 (+10.9%).

• Cash flows from operating activities were ¥420.6 billion (+39.1% YoY); investing and financing activities used ¥493.4 billion and ¥44.7 billion, respectively.

• Basic net income per share was ¥514.00, up from ¥457.16.

Outlook and guidance

• FY2025/FY2026 net sales forecasted at ¥5,600.0 billion (+3.0% YoY), operating income at ¥470.0 billion (excluding actuarial differences: +5.6% YoY).

• Net income forecasted at ¥273.0 billion (-16.0% YoY), or ¥273.0 billion (+6.7% YoY) excluding actuarial differences.

• Annual dividend planned at ¥165 per share (including ¥10 commemorative dividend), marking the 16th consecutive year of increases.