Sumitomo Forestry (1911) Q1 2026 earnings summary

Executive summary

• Net sales rose 4.0% year-over-year to ¥532.1 billion for Q1 FY12/2026, but recurring income dropped 42.2% to ¥21.8 billion and operating income fell 38.5% to ¥23.9 billion due to lower U.S. housing profits and higher SG&A expenses.

• Domestic custom-built housing and Australian housing drove sales growth, while U.S. housing faced declining units sold and margins.

• Comprehensive income surged to ¥64.7 billion from a loss of ¥24.6 billion in the prior year, driven by significant gains in other comprehensive income.

• A new Real Estate segment was established, and a 3-for-1 stock split was executed effective July 1, 2025.

Financial highlights

• Net sales rose to ¥532.1 billion (+4.0% YoY), but gross profit fell by ¥4.9 billion to ¥117.6 billion.

• Operating income decreased 38.5% to ¥23.9 billion; net income attributable to owners fell 18.6% to ¥16.8 billion.

• Recurring income declined 42.2% year-over-year to ¥21.8 billion.

• Net income per share was ¥27.32, reflecting a stock split adjustment.

• Total assets increased to ¥2,612.8 billion, and net assets rose to ¥1,179.7 billion, with an equity ratio of 39.8%.

Outlook and guidance

• FY12/2026 full-year net sales forecast at ¥2,590.0 billion (+14.2% YoY), recurring income at ¥160.0 billion (-8.5% YoY), and net income at ¥95.0 billion (-10.9% YoY).

• Operating income is projected to decline 6.9% to ¥157.0 billion.

• Dividend forecast for FY2026 is ¥50.00 per share.

• Segment forecasts unchanged from initial guidance; U.S. housing and real estate expected to recover in H2.

• Impact of Tri Pointe Homes acquisition and Middle East tensions not included in forecasts.