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Financial Results Presentation2982A.D.Works Group Co.,Ltd.Real Estate

Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of FY2026, operating profit reached 58.5% of the full-year plan, driven by strong performance in the domestic whole-building resale business. Pretax profit reached 80.6% following the recognition of extraordinary income. Meanwhile, the plan for the fractional real estate business was reviewed, while growth initiatives such as additional acquisitions of battery storage sites and preparations to launch a real estate crowdfunding service are under way.

Worth reading
68In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
58.5
Progress against full-year operating profit plan (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥29,000 million+88.0%
Operating profit¥2,515 million+85.2%
Net income¥2,363 million+147.1%
Results for the three months of the current quarter
Office condominium business revenue
¥1,439 million
Quarter-on-quarter_pct61.3
Full-year earnings forecast
Net Sales
¥77,000 million
Operating profit
¥4,300 million
Profit before tax
¥4,500 million
Net income
¥3,100 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales37.7%
Operating profit58.5%
Profit before tax80.6%
Net income76.3%
Contribution margin48.8%
Sales contribution profit from the domestic whole-building resale business¥3.66 billion against the full-year target of ¥6.9 billion, representing progress of more than 50%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing smoothly / within expectations
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Domestic whole-building real estate sales+¥1.03 billion
Fractional product sales-¥2.31 billion
Office condominium sales+¥660 million
Overseas real estate sales+¥340 million
Recurring fees, etc.+¥1 million
Personnel Expenses-¥100 million
Sales brokerage fees+¥330 million
Other SG&A expenses-¥400 million
Non-Operating Income and Expenses-¥210 million
Extraordinary Gains and Losses+¥1.71 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Battery storage site acquisition target15 sites
Estimated operating income from battery storage sitesApproximately ¥800 million–¥1.3 billion per year (before depreciation)
Estimated unrealized gain on battery storage sitesApproximately ¥1.7 billion (assuming ownership of 15 sites)
New initiatives
  • Make additional investments in 5 battery storage sites, raising the target number of secured sites from 10 to 15
  • Obtain the required licenses for real estate crowdfunding and plan to launch the service around September
  • Aim to offer multiple funds through real estate crowdfunding in the second half of FY2026
  • Enter into a large-scale joint real estate investment agreement with NANKAI, worth approximately ¥5 billion
  • Aim to expand asset management mandates
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio25.9 %
  • Domestic income-producing real estate balance¥717 million
  • Engagement score59 %
    Year on year against the same period last year+12 points
Segment results
Income-producing property sales business
Net Sales
¥26,810 million
Operating profit
¥3,156 million
Recurring Fee-Based Services
Net Sales
¥2,189 million
Operating profit
¥761 million
Domestic whole-building resale business
Net Sales
¥23,058 million+124.5%
Gross profit
¥3,916 million+135.9%
Fractional real estate product sales
Net Sales
¥1,292 million
Gross profit
¥260 million
Office condominium product sales
Net Sales
¥2,331 million
Gross profit
¥662 million
Medium-term management plan targets
Second medium-term management planPretax profit of ¥3 billion (FY2024–FY2026; achieved as of FY2025)
Long-Term VisionPretax profit of ¥20 billion and a 40% B2C share by 2034
Financial targets
ROE
Target13–14% by FY2027
Actual resultsFY2025 16.9%
ROIC
Actual results7.0% in FY2025
Equity ratio
Actual results25.9%
Market Size / Share
Battery storage business market size¥45 billion in FY2024 and ¥424 billion in FY2030
Long-term vision B2C share40%
Number of stores and locations
battery storage facilities
Number at period-end9 sites cumulatively
Acquisitions during the period6 sites acquired in Q2
Target15 sites
Number of employees
Number of Employees255 people
As ofEnd of December 2025
Annual Dividend
Annual dividend per share¥20
Interim¥10
End of period¥10
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥29,000 million (YoY +88.0%)
Operating profit¥2,515 million (YoY +85.2%)
Net income¥2,363 million (YoY +147.1%)
Results for the three months of the current quarterOffice condominium business revenue ¥1,439 million
Full-year earnings forecastNet Sales ¥77,000 million / Operating profit ¥4,300 million / Profit before tax ¥4,500 million / Net income ¥3,100 million
Progress against full-year forecastNet Sales 37.7% / Operating profit 58.5% / Profit before tax 80.6% / Net income 76.3% / Contribution margin 48.8% / Sales contribution profit from the domestic whole-building resale business ¥3.66 billion against the full-year target of ¥6.9 billion, representing progress of more than 50%
Self-assessment against the planProgressing smoothly / within expectations
Segment resultsIncome-producing property sales business Net Sales ¥26,810 million / Operating profit ¥3,156 million / Recurring Fee-Based Services Net Sales ¥2,189 million / Operating profit ¥761 million / Domestic whole-building resale business Net Sales ¥23,058 million (YoY +124.5%) / Gross profit ¥3,916 million (YoY +135.9%) / Fractional real estate product sales Net Sales ¥1,292 million / Gross profit ¥260 million / Office condominium product sales Net Sales ¥2,331 million / Gross profit ¥662 million
Breakdown of Factors Affecting the ChangeDomestic whole-building real estate sales +¥1.03 billion / Fractional product sales -¥2.31 billion / Office condominium sales +¥660 million / Overseas real estate sales +¥340 million / Recurring fees, etc. +¥1 million / Personnel Expenses -¥100 million / Sales brokerage fees +¥330 million / Other SG&A expenses -¥400 million / Non-Operating Income and Expenses -¥210 million / Extraordinary Gains and Losses +¥1.71 billion
Key KPIsIndicator name Equity ratio / Value 25.9 % / Year on year against the same period last year Not disclosed, Indicator name Domestic income-producing real estate balance / Value ¥717 million / Year on year against the same period last year Not disclosed, Indicator name Engagement score / Value 59 % / Year on year against the same period last year +12 points
Number of stores and locationsbattery storage facilities Number at period-end 9 sites cumulatively / Acquisitions during the period 6 sites acquired in Q2 / Target 15 sites
Number of employeesNumber of Employees 255 people / As of End of December 2025
Assumptions Underlying the Business OutlookBattery storage site acquisition target 15 sites / Estimated operating income from battery storage sites Approximately ¥800 million–¥1.3 billion per year (before depreciation) / Estimated unrealized gain on battery storage sites Approximately ¥1.7 billion (assuming ownership of 15 sites)
Medium-term management plan targetsSecond medium-term management plan Pretax profit of ¥3 billion (FY2024–FY2026; achieved as of FY2025) / Long-Term Vision Pretax profit of ¥20 billion and a 40% B2C share by 2034
Financial targetsROE Target 13–14% by FY2027 / Actual results FY2025 16.9% / ROIC Actual results 7.0% in FY2025 / Equity ratio Actual results 25.9%
Annual DividendAnnual dividend per share ¥20 / Interim ¥10 / End of period ¥10
Market Size / ShareBattery storage business market size ¥45 billion in FY2024 and ¥424 billion in FY2030 / Long-term vision B2C share 40%
New initiativesMake additional investments in 5 battery storage sites, raising the target number of secured sites from 10 to 15, Obtain the required licenses for real estate crowdfunding and plan to launch the service around September, Aim to offer multiple funds through real estate crowdfunding in the second half of FY2026, Enter into a large-scale joint real estate investment agreement with NANKAI, worth approximately ¥5 billion, Aim to expand asset management mandates
Items this document does not state (11)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Strong expansion in the domestic whole-building resale business drove operating profit higher. Pretax profit included ¥1.74 billion in extraordinary income following the finalization of the consideration for the transfer of a consolidated subsidiary's business. The fractional real estate business has been affected by the tax reform outline, and the company will assess sales trends and the pace of customer referrals from financial institutions.

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Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | A.D.Works Group Co.,Ltd. (2982) timely disclosure | Komori