After revenue growth, the next question is whether margins can improve faster than sales.

FY2026 revenue was ¥49,502 million and operating profit was ¥1,449 million, a significant improvement from FY2025 revenue of ¥36,269 million and operating profit of ¥487 million. Revenue increased 36.5% and operating profit 197.5%, while homes handed over increased from 1,124 to 1,457. The company attributes this primarily to the consolidation of Sakai Construction and the start of contributions from new stores opened by the end of the previous fiscal year.

Margin improvement also requires attention. FY2026 gross profit was ¥8,859 million, representing a gross margin of approximately 17.9%, up from FY2025 gross profit of ¥6,308 million and a margin of approximately 17.4%. Operating margin, however, rose only from 1.3% to 2.9%. Achieving the FY2027 operating profit forecast of ¥2,113 million on revenue of ¥54,273 million would require a simple operating margin of approximately 3.9%. Accordingly, at the next earnings release it will be necessary to confirm whether gross margin, absorption of SG&A expenses and store-level profitability are improving at the same time, rather than looking only at growth in unit sales.

The FY2027 forecasts are revenue of ¥54,273 million, operating profit of ¥2,113 million, ordinary profit of ¥1,882 million and net income attributable to owners of the parent of ¥1,160 million. The plan calls for final profit to increase 45.2% from ¥799 million in FY2026, but the FY2026 results did not disclose segment revenue and profit or order value and order backlog, limiting the breakdown of growth drivers by amount. At the next release, it will be important to determine whether cumulative orders and handovers, the ramp-up of new stores and the sales and profit contributions of existing M&A, including Sakai Construction, can be presented separately from consolidated results, using the 1,457 homes handed over as a reference point.