FY2026: Fourth-quarter real estate deliveries and achievement of the target after the downward revision are the key focus

For the nine months ended 30 September 2026, consolidated revenue was ¥29,127 million, down 17.8% year on year, operating profit was ¥2,771 million, down 4.8%, ordinary profit was ¥2,695 million, down 10.4%, and net income attributable to owners of the parent was ¥1,844 million, down 9.7%. Because operating profit declined less than revenue, the operating margin rose from approximately 8.2% in the same period of the previous year to approximately 9.5%, but this does not indicate that the full-year target will be achieved.

In the performance revision announced on 24 September, the ordinary profit target was cut from the previous ¥10,000 million to ¥6,120 million, changing the outlook to lower profit than in the previous fiscal year. The revised full-year forecasts are revenue of ¥61,796 million, operating profit of ¥6,329 million and net income attributable to owners of the parent of ¥4,138 million. Based simply on the difference from the nine-month results, the fourth quarter would need to generate revenue of ¥32,669 million, operating profit of ¥3,558 million, ordinary profit of ¥3,425 million and net income of ¥2,294 million. Accordingly, the key point in the results will be whether multiple large projects were delivered at the end of the fiscal year.

By segment, real estate business revenue was ¥26,094 million, down 19.7% year on year, and profit was ¥3,563 million, down 7.1%, accounting for almost all of the deterioration in consolidated results. The sales promotion business improved, with revenue of ¥3,032 million, up 3.2%, and profit of ¥49 million, up 11.7%, but it remains only about 10% of consolidated revenue. Therefore, achieving the full-year target depends more on the number of properties sold, property prices and project-level profitability than on improvement in the staffing business.

The company records real estate revenue when properties are delivered and explains that the period from the start of development to development completion and sale is generally about two years. Quarterly results have also fluctuated significantly in the past depending on whether deliveries took place. In the full-year results, we will want to confirm the types of properties whose revenue was recorded in the fourth quarter, buyers, delivery timing, total sales proceeds and gross margins. In the latest revision, timing differences in sales were cited as a reason for missing the target, but the shortfall by property and the contribution by project in the fourth quarter have not been disclosed.