Sekisui House, Ltd. (TSE: 1928), Japan's largest homebuilder by sales, reported a powerful start to its fiscal year ending January 2027, posting first-quarter results (the three months from February 1 to April 30, 2026) on June 4, 2026. Consolidated revenue edged up 1.7% year-on-year to ¥908,878 million, but the headline story was on the profit lines: operating profit jumped 26.2% to ¥76,104 million, ordinary profit climbed 54.9% to ¥72,495 million, and profit attributable to owners of the parent surged 75.2% to ¥58,479 million, up from ¥33,373 million a year earlier. Earnings per share rose to ¥90.21 from ¥51.49.
The disproportionate profit growth relative to a modest top-line gain points to a sharply improved earnings mix and margin expansion across the group's housing operations. Comprehensive income swung to a positive ¥67,510 million from a negative ¥30,707 million in the prior-year quarter — a roughly ¥98 billion improvement — reflecting both the stronger underlying result and a more favourable contribution from currency translation and other comprehensive-income items tied to the group's substantial overseas footprint.
Profit surge spans Japanese built-to-order and U.S. housing
Sekisui House operates across the full housing value chain: built-to-order detached and rental housing in Japan, a large spec-housing and real-estate development arm, a remodelling and property-management business, and a major U.S. homebuilding operation built around the M.D.C. Holdings (Woodside Homes and Richmond American Homes) platform acquired in recent years. The quarter's profit acceleration was driven by healthy domestic housing demand and pricing discipline in the built-to-order business, alongside contributions from the international segment, where the U.S. homebuilding platform continues to scale. The combination lifted the operating margin to roughly 8.4% of revenue, up from about 6.7% in the comparable quarter, underscoring how marginal volume gains translated into outsized profit growth.
Balance sheet stays solid as equity ratio improves
Total consolidated assets stood at ¥4,958,306 million at quarter-end, slightly below the ¥5,006,637 million recorded a year earlier, while net assets rose to ¥2,210,279 million from ¥2,188,237 million. The equity ratio improved to 43.6% from 42.7%, pointing to a healthy and conservatively financed capital structure — important for a homebuilder carrying large inventories of land and work-in-progress across both its Japanese and U.S. operations. The modest decline in total assets alongside rising net assets reflects retained earnings accretion and disciplined balance-sheet management during the period.
Dividend lifted to ¥145; full-year guidance maintained
Sekisui House raised its dividend forecast for the year ending January 2027 to ¥145 per share (¥72 interim + ¥73 year-end), up from ¥144 the prior year, continuing a steady progressive dividend policy. For the full year, the company guides for revenue of ¥4,353,000 million (+3.7%) and operating profit of ¥350,000 million (+2.5%), with ordinary profit of ¥314,000 million (-4.2%) and net profit attributable to owners of ¥218,000 million (-6.1%), equivalent to EPS of ¥336.30. The guided full-year declines in ordinary and net profit — despite the exceptionally strong first quarter — reflect a more conservative full-year stance, including expectations for higher financing costs and a less favourable non-operating and currency contribution over the remaining three quarters. With first-quarter net profit already representing about 27% of the full-year target, the company has built meaningful headroom against its guidance.
| Metric | Q1 FY2027 | Q1 FY2026 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 908,878 | 894,044 | +1.7% |
| Operating profit (¥ million) | 76,104 | 60,287 | +26.2% |
| Ordinary profit (¥ million) | 72,495 | 46,811 | +54.9% |
| Net profit attrib. to owners (¥ million) | 58,479 | 33,373 | +75.2% |
| EPS (¥) | 90.21 | 51.49 | +75.2% |
| Comprehensive income (¥ million) | 67,510 | −30,707 | n.m. |
| Total assets (¥ million) | 4,958,306 | 5,006,637 | −1.0% |
| Net assets (¥ million) | 2,210,279 | 2,188,237 | +1.0% |
| Equity ratio | 43.6% | 42.7% | +0.9pp |
| Annual dividend forecast (¥) | 145 | 144 | +0.7% |
| FY guidance — revenue (¥ million) | 4,353,000 | — | +3.7% |
| FY guidance — operating profit (¥ million) | 350,000 | — | +2.5% |
| FY guidance — ordinary profit (¥ million) | 314,000 | — | −4.2% |
| FY guidance — net profit (¥ million) | 218,000 | — | −6.1% |
| FY guidance — EPS (¥) | 336.30 | — | — |
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.