Consolidated Financial Results for the three months ended June 30, 2025 [PDF: 255KB]

‌Consolidated Financial Results for the Three Months Ended June 30, 2025 [Japanese GAAP]‌

August 7, 2025

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 01, 2025 to June 30, 2025)

1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   June 30, 2025	285,906	0.4	20,453	54.2	19,163	23.7	12,633	16.5
   June 30, 2024	284,774	7.9	13,262	(41.2)	15,493	(31.8)	10,843	(27.7)

   (Note) Comprehensive income:	Three months ended June 30, 2025:	¥ 8,166 million	[	(46.0)%]
   	Three months ended June 30, 2024:	¥ 15,110 million	[	(17.9) %]

   	Basic earnings per share	Diluted earnings per share
   Three months ended	Yen	Yen
   June 30, 2025	46.34	-
   June 30, 2024	39.73	-

2. Consolidated Financial Position

(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026(April 1, 2025 to March 31, 2026)

(% indicates changes from the previous corresponding period.)

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

(1) Significant changes in the scope of consolidation during the period: Yes

(Note) The number of treasury stocks above includes shares held as the trust assets for the Board Benefit Trust (BBT) and the Employee Stock Ownership Plan (ESOP).

Shares of the Company's own stock held in BBT and ESOP trust accounts are included in treasury stock subtracted from the calculation of the average number of shares during the period.

The forecasts contained herein are based on information available as of the date of this announcement, and the actual results may differ materially from forecasts due to various factors. For details of assumptions for financial forecasts and other related matters, please refer to "1. Overview of Financial Results, etc. (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking information" on page 3 of the Attachment.

Supplementary materials for this report and results briefing materials can be found on the Company's website.

Table of contents of appendix

1. Overview of Financial Results, etc.

   1. Overview of Financial Results for this period

      For the three months ended on June 30, 2025, net sales were 285.9 billion yen, up by 0.4% compared with the same period of the previous fiscal year, due to the improvement in the gross profit margin of completed construction contracts and the presence of highly profitable real estate sales transactions, operating profit was 20.5 billion yen, up by 54.2% compared with the same period of the previous fiscal year, ordinary profit was 19.2 billion yen, up by 23.7% compared with the same period of the previous fiscal year, and profit attributable to owners of parents was 12.6 billion yen, up by 16.5% compared with the same period of the previous fiscal year.

      From the first quarter of the current consolidated fiscal year, we have changed the classification of our reportable segments. Accordingly, the figures for the first quarter of the previous consolidated fiscal year are presented based on the new segment classification for comparison purposes. For details, please refer to 2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to Quarterly Consolidated Financial Statements (Notes on Segment Information) 3. Matters Related to Changes in Reportable Segments.

      Operating results by reportable segment are as follow:

      Billions of yen

      Construction-related business			Real estate-related business		Condominium management and operation business		Overseas business
      Net Sales	226.7	(+4.1)	50.4	(+0.2)	37.7	(+4.3)	1.4	(+1.0)
      Segment profit	15.4	(+3.8)	6.2	(+1.6)	1.8	(+0.9)	-0.1	(+1.6)

      Figures in parentheses show the amount of increase or decrease from the same period of the previous fiscal year

      (Construction-related business)

      For construction works, projects owners have had high regard for the Company's ability in gathering land information as well as product planning, its attitude regarding construction quality and maintaining construction schedules, efficient production system, and such. Under these circumstances, the gross profit margin of completed construction contracts rose due to improved construction profitability upon receiving orders.

      In terms of orders for new construction of for-sale condominiums, the Company won orders for 13 projects in total throughout Japan consisting of 9 in the Tokyo metropolitan area including 5 large projects of at least 200 units and 4 projects in the Kinki and Tokai areas including 2 large projects of at least 200 units.

      As for construction completion, the Company completed construction of 19 projects including 3 projects for rental apartments, etc.

      The segment posted sales of 226.7 billion yen, up by 1.8% compared with the same period of the previous fiscal year, and operating profit was 15.4 billion yen, up by 33.4% compared with the same period of the previous fiscal year.

      (Real estate-related Business)

      The segment posted sales of 50.4 billion yen, up by 0.5 compared with the same period of the previous fiscal year ,and operating profit of 6.2 billion yen, up by 34.0% compared with the same period of the previous fiscal year, while income property sales decreased, some transactions achieved high profitability.

      (Condominium management and operation Business)

      Due to the increase in the number of units under condominium and rental apartment management operation, as well as the development and sale of properties intended for rental management operations, the segment posted sales of 37.7 billion yen, up by 12.9% compared with the same period of the previous fiscal year, and operating profit of 1.8 billion yen, up by 94.5% compared with the same period of the previous fiscal year.

      (Overseas business)

      The subsidiaries have been operating a commercial facility and developing new projects of for-sale detached housing business in Oahu, Hawaii.

      The segment posted sales of 1.4 billion yen (the sales of 0.4 billion yen in the same period of the previous fiscal year) and operating loss of 0.1 billion yen (the operating loss of 1.7 billion yen in the same period of the previous fiscal year).

   2. Overview of Financial Position for this period

      Total assets as of June 30, 2025, a decreased of 24.3 billion yen from the end of the previous fiscal year to 1,340.9 billion yen. This is mainly due to a decrease in cash and deposits accompany with a decrease of deposits received.

      Total liabilities were 814.3 billion yen, a decrease of 18.8 billion yen from the end of the previous fiscal year. This is mainly due to a decrease in deposits received.

      Net assets were 526.6 billion yen, a decreased of 5.4 billion yen from the end of the previous fiscal year. This is mainly due to a decrease in foreign currency translation adjustment.

   3. Explanation of Forecast of Consolidated Financial Results and Other Forward- Looking Information There is no change in the forecast announced on May 14, 2025.

2. ‌Quarterly Consolidated Financial Statements and Principal Notes

   1. ‌Quarterly Consolidated Balance Sheets

      		(Millions of yen)
      As of March 31, 2025		As of June 30, 2025
      Assets
      Current assets
      Cash and deposits	235,976	203,674
      Notes receivable, accounts receivable from completed construction contracts and other	148,607	133,413
      Securities	3,305	6,596
      Costs on construction contracts in progress	13,578	17,201
      Real estate for sale	312,779	302,914
      Costs on real estate business	281,933	292,964
      Real estate for development	36,912	35,609
      Other	20,232	27,852
      Allowance for doubtful accounts	(121)	(129)
      Total current assets	1,053,200	1,020,094
      Non-current assets
      Property, plant and equipment
      Buildings and structures	77,922	85,275
      Machinery, vehicles, tools, furniture and fixtures	12,898	17,562
      Land	79,421	81,722
      Leased assets	1,250	2,420
      Construction in progress	8,649	11,375
      Other	183	1,289
      Accumulated depreciation	(36,439)	(43,760)
      Total property, plant and equipment	143,883	155,882
      Intangible assets
      Leasehold interests in land	1,948	1,948
      Goodwill	1,778	1,727
      Other	8,679	9,286
      Total intangible assets	12,404	12,961
      Investments and other assets
      Investment securities	102,774	99,901
      Long-term loans receivable	4,483	4,790
      Retirement benefit asset	28,471	28,904
      Deferred tax assets	6,794	4,746
      Other	14,134	14,611
      Allowance for doubtful accounts	(941)	(959)
      Total investments and other assets	155,716	151,992
      Total non-current assets	312,003	320,835
      Total assets	1,365,203	1,340,929

      		(Millions of yen)
      As of March 31, 2025		As of June 30, 2025
      Liabilities
      Current liabilities
      Notes payable, accounts payable for construction contracts and other	105,413	99,095
      Electronically recorded obligations - operating	42,537	42,896
      Short-term borrowings	15,000	4,625
      Current portion of long-term borrowings	20,000	21,308
      Current portion of bonds payable	40,000	40,758
      Income taxes payable	14,820	4,088
      Advances received on construction contracts in progress	44,843	49,549
      Deposits received - real estate business	38,771	54,802
      Deposits received	77,499	34,669
      Provision for warranties for completed construction	5,169	5,212
      Provision for loss on construction contracts	521	387
      Provision for bonuses	6,877	3,483
      Provision for bonuses for directors (and other officers)	151	-
      Other	31,224	26,634
      Total current liabilities	442,824	387,504
      Non-current liabilities
      Bonds payable	80,000	80,219
      Long-term borrowings	265,000	300,331
      Provision for loss on litigation	6,419	6,104
      Provision for share awards	4,824	4,737
      Provision for share awards for directors (and other officers)	459	460
      Retirement benefit liability	1,946	2,004
      Deferred tax liabilities	11	11
      Other	31,687	32,958
      Total non-current liabilities	390,347	426,824
      Total liabilities	833,170	814,328
      Net assets
      Shareholders' equity
      Share capital	57,500	57,500
      Capital surplus	7,373	7,373
      Retained earnings	472,561	472,715
      Treasury shares	(37,398)	(39,651)
      Total shareholders' equity	500,036	497,937
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	10,215	10,062
      Foreign currency translation adjustment	22,938	18,500
      Remeasurements of defined benefit plans	(1,155)	(1,032)
      Total accumulated other comprehensive income	31,997	27,530
      Non-controlling interests	-	1,133
      Total net assets	532,033	526,600
      Total liabilities and net assets	1,365,203	1,340,929

   2. ‌Quarterly Consolidated Statements of Income and Comprehensive Income

      ‌Quarterly Consolidated Statements of Income (For the three months)

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Net sales
      Net sales of completed construction contracts	139,658	153,762
      Net sales of design and supervision	1,913	931
      Net sales of leasing and management	23,154	23,005
      Real estate sales	115,033	102,774
      Other operating revenue	5,016	5,433
      Total net sales	284,774	285,906
      Cost of sales
      Cost of sales of completed construction contracts	122,378	133,501
      Cost of design and supervision	945	511
      Cost of leasing and management	17,930	18,114
      Cost of sales - real estate	106,694	87,829
      Other business expenses	4,094	4,293
      Total cost of sales	252,040	244,248
      Gross profit
      Gross profit on completed construction contracts	17,280	20,261
      Gross profit-design and supervision	968	421
      Gross profit-leasing and management	5,224	4,891
      Gross profit - real estate sales	8,339	14,946
      Gross profit - other business	922	1,140
      Total gross profit	32,733	41,659
      Selling, general and administrative expenses	19,471	21,206
      Operating profit	13,262	20,453
      Non-operating income
      Interest income	64	83
      Dividend income	2,563	296
      Other	625	237
      Total non-operating income	3,252	616
      Non-operating expenses
      Interest expenses	850	1,116
      Share of loss of entities accounted for using equity method	109	563
      Other	62	227
      Total non-operating expenses	1,021	1,906
      Ordinary profit	15,493	19,163

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Extraordinary income
      Gain on sale of non-current assets	11	3
      National subsidies	7	-
      Other	0	-
      Total extraordinary income	18	3
      Extraordinary losses
      Loss on disposal of non-current assets	5	91
      Impairment losses	3	-
      Loss on tax purpose reduction entry of non-current assets	7	-
      Total extraordinary losses	14	91
      Profit before income taxes	15,497	19,074
      Income taxes - current	2,860	4,155
      Income taxes - deferred	1,794	2,286
      Total income taxes	4,654	6,441
      Profit	10,843	12,633
      Profit attributable to owners of parent	10,843	12,633

      ‌Quarterly Consolidated Statements of Comprehensive Income (For the three months)

      		(Millions of yen)
      For the three months ended June 30, 2024		For the three months ended June 30, 2025
      Profit	10,843	12,633
      Other comprehensive income
      Valuation difference on available-for-sale securities	(2,875)	(153)
      Foreign currency translation adjustment	7,066	(4,437)
      Remeasurements of defined benefit plans, net of tax	76	123
      Total other comprehensive income	4,268	(4,467)
      Comprehensive income	15,110	8,166
      Comprehensive income attributable to
      Comprehensive income attributable to owners of parent	15,110	8,166

   3. ‌Notes to Quarterly Consolidated Financial Statements

   (Notes to Going Concern Assumption) Not applicable.

   (Notes to Significant Changes in the Amount of Shareholder's Equity) Not applicable.

   (Notes on Segment information)

   1. Reportable segment information (net sales and profit (loss))

      For the three months ended June 30,2024 (Millions of Yen)

      	Reportable Segments				Total	Adjustments and eliminations (Note 1)	Consolidated (Note 2)
      	Construction-related business	Real estate-related business	Condominium management and operation business	Overseas business
      Net sales
      Sales to third parties	202,623	49,927	31,821	403	284,774	-	284,774
      Inter-segment sales and transfer	19,950	296	1,551	-	21,797	(21,797)	-
      Total	222,573	50,223	33,372	403	306,571	(21,797)	284,774
      Segment profit(loss)	11,528	4,590	931	(1,738)	15,312	(2,050)	13,262

      Note 1 : Adjustment and eliminations for segment profit include (994) million yen of elimination of inter-segment transactions and (1,055) million yen of corporate expenses, which are not allocable to the reportable segments. These corporate expenses mainly consist of general and administrative expenses not attributable to reportable segments.

      Note 2 : Segment profit(loss) has been adjusted with operating profit in the consolidated statement of income.

      For the three months ended June 30,2025 (Millions of Yen)

      	Reportable Segments				Total	Adjustments and eliminations (Note 1)	Consolidated (Note 2)
      	Construction-related business	Real estate-related business	Condominium management and operation business	Overseas business
      Net sales
      Sales to third parties	199,221	49,375	35,940	1,370	285,906	-	285,906
      Inter-segment sales and transfer	27,433	1,074	1,734	-	30,242	(30,242)	-
      Total	226,655	50,450	37,674	1,370	316,149	(30,242)	285,906
      Segment profit(loss)	15,375	6,152	1,811	(143)	23,196	(2,743)	20,453

      Note 1 : Adjustment and eliminations for segment profit include (1,568) million yen of elimination of inter-segment transactions and (1,175) million yen of corporate expenses, which are not allocable to the reportable segments. These corporate expenses mainly consist of general and administrative expenses not attributable to reportable segments.

      Note 2 : Segment profit(loss) has been adjusted with operating profit in the consolidated statement of income.

   2. Information on Assets by Reportable Segment (Significant changes due to subsidiary acquisition)

      For the three months ended on June 30, 2025, the segment assets of the "Construction-related Business" increased by 17,749 million yen and the segment assets of the "Condominium management and operation Business" increased by 2,325 million yen compared to the end of the previous consolidated fiscal year, due to Wood Friends Co., Ltd. and its four subsidiaries becoming a consolidated subsidiary.

   3. Matters Related to Changes in Reportable Segments

   In conjunction with the formulation of a new medium-term business plan starting from the fiscal year ending March 2026, the names of the reportable segments have been revised from the first quarter of the current consolidated accounting period. Specifically, the segment previously referred to as "Service-related Business" has been renamed to "Condominium management and operation Business," and "Overseas-related Business" has been renamed to "Overseas Business."

   As part of this revision, the composition of subsidiaries within each segment has also been partially adjusted. Furthermore, the segment information for the cumulative first quarter of the previous consolidated accounting period has been presented based on the revised classification of reportable segments.

   (Notes on quarterly consolidated statements of cash flows)

   Quarterly consolidated statements of cash flows for the current quarterly consolidated accounting period have not been prepared.

   Depreciation expenses (including amortization expenses pertaining to intangible assets excluding goodwill) and amortization expenses of goodwill pertaining to the quarterly consolidated period under review are as follows.

   	For the three months ended June 30, 2024	For the three months ended June 30, 2025
   Depreciation	1,963 million yen	1,907 million yen
   Amortization of goodwill	51 million yen	339 million yen

   (Matters Related to Business Combinations, etc.) (Business Combination through Acquisition)

   1. Overview of business combination

      1. Acquired company's name and its business description Name: Wood Friends Co., Ltd. and its four subsidiaries

         Business description: Planning and design of buildings, construction and sales, other businesses related to living environments

      2. Main reason for the business combination

         As a measure to simultaneously work towards creating a sustainable society and improve the quality of living spaces, we believe that "promoting the use of wood in construction and using wood materials not only has an environmental benefit of reducing CO2 emissions, but also contributes greatly to the physical and mental health and happiness of residents", We are therefore working to create wooden common areas for condominiums and our own unique hybrid timber homes that combine reinforced concrete and wood construction. On the other hand, Wood Friends Co., Ltd. aims to realize a consistent manufacturing and retail business from forestry to construction and sales, and to provide a stable supply of domestic timber at fair prices. Wood Friends Co., Ltd. is also focusing on realizing a "wood resource cascade business" that aims to properly circulate local forestry and use up wood resources without waste. We believe that by adding Wood Friends Group to our group, we will be able to further accelerate our efforts, and have therefore decided to carry out the business combination.

      3. Date of business combination

         Date of Share Acquisition: June 3, 2025 Deemed Acquisition Date: May 31, 2025

      4. Legal forms of business combination Acquisition of shares for cash consideration

      5. Name of the combined entity Not change

      6. Acquired voting interest 90.38%

      7. Key reasons for determining the acquiring entity

         This is attributable to the Company's acquisition of shares for cash consideration.

   2. Period of performance of the acquired company included in the consolidated financial statements

      As the deemed acquisition date is May 31, 2025, only the balance sheet is reflected in the consolidated financial statements, and its operating results are not included.

   3. Purchase price of the acquired entity and the breakdown of consideration by type Consideration transferred: Cash and cash equivalents 2,267 million yen Purchase price 2,267 million yen

   4. Details and amounts of major acquisition-related costs

      Advisory fees and other acquisition-related costs 162 million yen

   5. Amount of goodwill recognized, reasons for its recognition, amortization method, and amortization period

      1. Amount of goodwill recognized 288 million yen

      2. Cause of Goodwill Recognition

         Goodwill was recognized as it arose from the expected future excess earnings generated by the Company's ongoing business activities.

      3. Amortization method and amortization period

         Due to the immateriality of the amount, goodwill is fully amortized at the time of recognition.

   6. Amounts and major components of assets acquired and liabilities assumed on the date of business combination

   Current assets	10,227 million yen
   Non-current assets	8,831 million yen
   Total of assets	19,057 million yen
   Current liabilities	9,003 million yen
   Non-current liabilities	6,942 million yen
   Total of liabilities	15,945 million yen

3. Non-consolidated Orders received

1. Non-consolidated Orders received

   	Orders
   	Millions of Yen	％
   For the three months ended June 30, 2025	128,336	7.5
   For the three months ended June 30, 2024	119,423	7.4

   * % indicates changes from the previous corresponding period.

   Breakdown of orders Received 〔Millions of Yen〕

   		For the three months ended June 30, 2024		For the three months ended June 30, 2025		Increase (decrease)
   		Amount	%	Amount	%	Amount	%
   	Private-sector condominiums	105,357	(91.6%)	119,685	(97.0%)	14,328	13.6%
   	Rental condominiums, Company housing, etc.	6,820	(5.9%)	313	(0.3%)	(6,507)	(95.4%)
   	Residence Total	112,177	(97.5%)	119,998	(97.3%)	7,821	7.0%
   	Non-Residence	11	(0.0%)	123	(0.1%)	112	−%
   	Others	2,864	(2.5%)	3,248	(2.6%)	384	13.4%
   	Construction Total	115,051	96.3%	123,368	96.1%	8,317	7.2%
   	Consulting Contracts	1,403	1.2%	1,367	1.1%	(37)	(2.6%)
   	Construction business	116,455	97.5%	124,735	97.2%	8,280	7.1%
   	Design and Supervision	2,968	2.5%	3,601	2.8%	633	21.3%
   Orders Total		119,423	100.0%	128,336	100.0%	8,913	7.5%

   * The figures in parentheses refer to the proportion of Construction Total.

2. Non-consolidated Orders received forecast

* % indicates changes from the previous corresponding period.

Qualitative information of Orders Received result and forecast

Construction total were 123.4 billion yen, increased by 8.3 billion yen y/y and Orders received were 128.3 billion yen, increased by 8.9 billion yen y/y. A progress rate against the interim forecast of 270 billion yen was 47.5% and the progress was as expected.

We haven't revised the interim and annual forecast.