Revenue growth but a lower operating margin, with fourth-quarter pressure remaining for FY2026

For the nine months ended 30 September 2026, revenue was ¥10,461 million, operating profit was ¥967 million, ordinary profit was ¥966 million, and net income attributable to owners of the parent was ¥872 million. Revenue increased 9.0% year on year and ordinary profit rose 1.7%, while operating profit fell 0.4% and net income declined 7.1%, indicating that revenue growth has not flowed through fully to operating profit and net income.

In the nine months of the previous fiscal year, revenue was ¥9,594 million and operating profit was ¥970 million, resulting in an operating margin of approximately 10.1%. Despite revenue increasing by approximately ¥867 million this fiscal year, operating profit decreased by approximately ¥3 million and the operating margin fell to approximately 9.2%. At the full-year results, it will be necessary to assess how the sales mix of properties sold, cost of sales and one-off factors in selling, general and administrative expenses affected the margin, rather than focusing only on the increase in revenue.

The company has left its full-year forecasts unchanged at revenue of ¥12,300 million, operating profit of ¥1,203 million, ordinary profit of ¥1,129 million and net income of ¥1,091 million. Nine-month progress was approximately 85.1% for revenue, 80.4% for operating profit and 79.9% for net income. Simple calculations indicate that the fourth quarter needs to generate revenue of ¥1,839 million, operating profit of ¥236 million and net income of ¥219 million, making the profit outcome a more important point of verification than revenue.

At the next earnings announcement, it will be important to confirm whether the fourth-quarter operating margin approached the full-year plan of approximately 9.8%, and whether any margin recovery resulted from improved gross margins on properties sold or from the unwinding of a temporary increase in selling, general and administrative expenses. If operating profit does not reach ¥1,203 million, the causes of the lower margin and their persistence into the next fiscal year will be valuation issues, in addition to whether full-year revenue is achieved.