HASEKO Lifts Q1 Operating Profit 46% on Wider Construction Margins as Parent-Company Orders Nearly Double

Revenue up 9.2%, operating profit up 46.0%

HASEKO Corporation (TSE: 1808), the contractor whose core business is building condominiums, published consolidated results for the first quarter of FY3/2027 — April 1 to June 30, 2026 — on August 6, 2026 under Japanese GAAP. Revenue rose 9.2% to ¥312,148 million, operating profit 46.0% to ¥29,857 million, ordinary profit 58.9% to ¥30,455 million and net profit attributable to owners of the parent 68.5% to ¥21,287 million. Earnings per share were ¥80.39 against ¥46.34, up 73.5% — faster than net profit, because the average number of shares outstanding fell to 264,800,425 from 272,641,364.

The filing gives one cause for the jump: a higher gross margin on completed construction work. Completed-construction revenue was essentially flat, at ¥153,362 million against ¥153,762 million, but its cost fell to ¥126,187 million from ¥133,501 million, so completed-construction gross profit rose 34.1% to ¥27,175 million and the margin widened to 17.7% from 13.2%. Real-estate sales added volume rather than margin: they rose 23.7% to ¥127,166 million, while their gross profit rose 16.9% to ¥17,467 million. Total gross profit rose 24.3% to ¥51,788 million, lifting the group gross margin to 16.6% from 14.6%. Because selling, general and administrative expenses rose only 3.4% to ¥21,931 million, almost all of the ¥10,129 million gain in gross profit reached the operating line, and the operating margin rose to 9.6% from 7.2%.

Below the operating line, an equity-method swing

Ordinary profit grew faster than operating profit, and the income statement shows why, although the narrative does not comment on it. Equity-method investment income was ¥1,120 million against a ¥563 million loss a year earlier, lifting non-operating income to ¥2,195 million from ¥616 million, while interest expense rose to ¥1,453 million from ¥1,116 million. Extraordinary items were small: ¥82 million of losses, including a ¥77 million impairment. Pre-tax profit rose 59.2% to ¥30,374 million and income taxes 40.8% to ¥9,071 million, an effective rate of 29.9% against 33.8%, which is why net profit outpaced ordinary profit. Comprehensive income was ¥20,212 million, up 147.5%, but below net profit, because other comprehensive income was negative at ¥1,091 million — mainly a ¥3,014 million fall in the valuation difference on securities, partly offset by a positive ¥2,014 million from currency translation.

Construction-Related carried the quarter

Construction-Related, by far the largest segment, grew revenue 3.7% to ¥235,010 million and segment profit 50.6% to ¥23,159 million. The company links the higher margin to the regard developers have for its land-information gathering, product planning, build quality, adherence to schedules and efficient production system. Real Estate-Related revenue rose 18.6% to ¥59,846 million and profit 12.2% to ¥6,904 million, on more handovers of newly built condominiums for sale. Management & Operations slipped, with revenue down 0.4% to ¥37,523 million and profit down 3.9% to ¥1,742 million, because fewer condominiums were developed and sold for the purpose of winning rental-management contracts. Overseas, which operates a commercial facility and is developing a new detached-house project on Oahu, Hawaii, posted revenue of ¥1,167 million against ¥1,370 million and a segment loss of ¥413 million against ¥143 million. The segment figures include ¥21,398 million of intersegment sales, ¥18,581 million of it in Construction-Related.

Parent-company orders nearly doubled

The order data are non-consolidated. Parent-company orders received rose 93.8% to ¥248,776 million, of which construction work was ¥243,593 million, up 97.5%. Orders for condominiums for sale rose 66.9% to ¥199,694 million, and rental condominiums and company housing jumped to ¥41,294 million from ¥313 million. The parent booked 19 new condominium construction orders — 13 in the Tokyo metropolitan area, six of them large projects of 200 units or more, and six in the Kinki and Tokai regions, four of them of 200 units or more — and completed 13 projects, including two rental condominiums and similar buildings. Orders have reached 75.4% of the parent's first-half forecast of ¥330,000 million, which the company describes as broadly on plan; both that forecast and the full-year order forecast of ¥730,000 million are unchanged.

Cash fell with deposits received, and the equity ratio rose

Total assets fell 4.6% to ¥1,353,050 million from ¥1,417,724 million at March 31, 2026, mainly because cash and deposits fell to ¥230,293 million from ¥279,968 million as deposits received declined to ¥46,196 million from ¥68,413 million. Costs of real-estate projects in progress rose to ¥317,744 million from ¥296,445 million, while real estate for sale fell to ¥243,497 million from ¥254,820 million. Liabilities fell ¥71,867 million to ¥782,407 million and net assets rose 1.3% to ¥570,643 million, so the equity ratio improved to 42.1% from 39.7%. Borrowings and bonds totalled ¥418,544 million, against ¥425,000 million. No cash-flow statement is prepared for the quarter; depreciation was ¥2,178 million against ¥1,907 million. One company, Haseko Home Holdings, was newly consolidated during the quarter.

Guidance unchanged — and a parent-only revision that does not touch it

Consolidated guidance was not revised. For the six months to September 30, 2026, HASEKO expects revenue of ¥630,000 million (+5.8%), operating profit of ¥49,000 million (+18.5%), ordinary profit of ¥47,000 million (+19.5%) and net profit of ¥30,000 million (+23.9%). For the full year to March 31, 2027 it expects revenue 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%), or ¥249.19 per share. The first quarter alone delivered 60.9% of the half-year operating-profit forecast and 71.0% of the half-year net-profit forecast, leaving an implied second quarter of about ¥19,143 million of operating profit against the ¥29,857 million just booked; the filing does not comment on that shape.

What did change was the parent-company forecast. HASEKO had assumed an extraordinary gain from an intra-group reorganisation; after further review it no longer expects to book it, and cut its non-consolidated net-profit forecast by ¥7,000 million, to ¥46,500 million for the half year (−13.1%) and ¥69,000 million for the full year (−9.2%). Because the transaction is between consolidated companies, the company says the consolidated forecast is unaffected. The dividend forecast is also unchanged, at ¥100.00 for the year — ¥50.00 at the interim and ¥50.00 at the year-end — against ¥95.00 for FY3/2026. After the quarter, the board resolved on August 6, 2026 to dispose of 4,151,500 treasury shares at ¥2,659.5 each, ¥11,040,914,250 in total, on August 21, 2026, to the trusts behind its stock-benefit plans for directors and employees — equal to 1.42% of issued shares.

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.