Haseko FY2026 Net Profit Surges 59% to ¥54.8bn as Condominium Revenue Tops ¥1.27 Trillion

Haseko Corporation (TSE: 1808), Japan's leading condominium construction company, reported consolidated results for FY2026 (year ended March 31, 2026) under Japanese GAAP that demonstrated a strong rebound in profitability. Net sales grew 8.1% year-on-year to ¥1,273,136 million (¥1.27 trillion), while operating profit rose 16.6% to ¥98,743 million and ordinary profit climbed 12.8% to ¥94,051 million. Profit attributable to owners of the parent surged 59.2% to ¥54,839 million, sharply reversing the prior year's 38.5% decline. EPS advanced to ¥204.54 from ¥126.20, and return on equity improved to 10.0% from 6.6%.

The headline revenue figure of ¥1.27 trillion marks a record high for the group, reflecting sustained demand across Haseko's core construction contracting business and its growing services and real-estate segments. The operating profit margin widened to 7.8% from 7.2% in the prior year. Comprehensive income for the period was ¥74,953 million, up 68.2% year-on-year, underpinning an expanding equity base. Total assets increased to ¥1,417,724 million (from ¥1,365,203 million), and net assets grew to ¥563,451 million with an equity ratio of 39.7%.

Cash generation rebounds strongly

Operating cash flow recovered sharply to ¥157,414 million, a major turnaround from just ¥3,916 million in FY2025, reflecting improved working capital management and higher earnings. Investing cash outflows were ¥53,225 million (versus ¥32,472 million) as Haseko continued strategic capital deployment. Financing outflows were ¥53,373 million (versus ¥20,545 million), largely reflecting dividend payments and loan repayments. The group ended the year with cash and equivalents of ¥288,134 million, up from ¥235,798 million.

Scope of consolidation expanded with WoodFriends acquisition

FY2026 saw a notable change in the scope of consolidation: Haseko added six new entities including WoodFriends Co., Ltd. and four of its subsidiaries, as well as HASEKO UK LIMITED, following the group's strategic push into timber-frame construction and overseas operations. One company — WoodConstruction Co., Ltd. — was removed from the consolidated perimeter after being absorbed into WoodFriends through a merger on December 1, 2025. This expansion reflects Haseko's diversification beyond its traditional reinforced-concrete condominium contracting base into more varied residential construction methods and geographies.

Dividend raised to ¥95; FY2027 target ¥100

Haseko raised the annual dividend for FY2026 to ¥95 per share — comprising a ¥45 interim and a ¥50 year-end payment — up from ¥85 in FY2025. The total payout for the year was ¥25,680 million, with a consolidated payout ratio of 46.4% and a net-assets dividend rate of 4.7%. For FY2027, the company is guiding an annual dividend of ¥100 per share (¥50 interim + ¥50 year-end), continuing a pattern of progressive dividend growth in line with rising earnings. Net assets per share rose to ¥2,126.38 from ¥1,950.61.

FY2027 guidance: revenue ¥1.38 trillion, OP ¥110 billion

For FY2027 (ending March 31, 2027), Haseko guides for consolidated net sales of ¥1,380,000 million (+8.4%), operating profit of ¥110,000 million (+11.4%), ordinary profit of ¥105,000 million (+11.6%), and net profit of ¥66,000 million (+20.4%) — equivalent to EPS of ¥249.39. The interim guidance is for sales of ¥630,000 million (+5.8%), with operating profit of ¥49,000 million (+18.5%). These targets signal sustained confidence in housing demand across Japan's major metropolitan areas, where Haseko maintains a dominant position in large-scale condominium development and construction.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.