Columbia Works H1 Revenue Doubles to ¥19.9 Billion as Operating Profit Surges 157%

A delivery-driven half that doubled the top line

Columbia Works Inc. (TSE Standard: 146A) reported consolidated results for the first half of the year to December 2026 — January 1 to June 30 — under Japanese GAAP. Revenue more than doubled, rising 105.3% to ¥19,946 million from ¥9,717 million, while operating profit jumped 156.9% to ¥3,276 million from ¥1,275 million. Ordinary profit rose 247.2% to ¥2,978 million and profit attributable to owners of the parent gained 183.8% to ¥1,966 million. Comprehensive income was ¥1,979 million, up 183.9%.

Basic earnings per share came to ¥254.97 against ¥99.82 a year earlier, with diluted EPS of ¥254.17 against ¥99.74. Both prior-year figures are restated for the two-for-one share split that took effect on August 1, 2025, so the 155% EPS advance is a like-for-like comparison. The company runs a single reportable segment — real estate development — so no segment breakdown is disclosed. Prior-year comparatives also reflect the finalisation of the provisional accounting for the February 2025 acquisition of ACS Holdings Inc., which trimmed the negative goodwill gain recognised at the time from ¥61 million to ¥59 million.

Management's commentary framed the operating environment as broadly supportive: gradual economic recovery on improving employment and returning inbound demand, set against persistent inflation, a possible shift in U.S. policy and the Bank of Japan's rate trajectory. For the property market specifically, the company pointed to rising construction material costs and higher interest rates as headwinds, but argued that climbing residential rents, a weak yen and interest rates still low relative to Europe and the United States should keep domestic and overseas investor demand for Japanese real estate firm. Its own development pipeline remains concentrated on residential assets, where demand has been steadiest.

Thinner gross margin, heavier interest bill

Gross profit rose 88.8% to ¥4,802 million from ¥2,543 million, but cost of sales grew faster than revenue — ¥15,144 million against ¥7,174 million — so the gross margin narrowed to 24.1% from 26.2%. Operating leverage did the rest of the work: selling, general and administrative expenses rose only 20.3%, to ¥1,525 million from ¥1,268 million, which lifted the operating margin to 16.4% from 13.1% despite the thinner gross spread.

Below the operating line the picture is more mixed. Non-operating income swelled to ¥289 million from just ¥8 million, dominated by ¥263 million of interest and dividend income. Non-operating expenses rose to ¥588 million from ¥426 million, of which interest paid accounted for ¥516 million against ¥340 million — a 52% increase that is the direct cost of the debt-funded inventory build described below. There were no extraordinary items at all this half, whereas the year-ago period booked ¥164 million of extraordinary gains (¥105 million on the sale of fixed assets and ¥59 million of negative goodwill). That absence is why ordinary profit's 247.2% surge outruns net profit's 183.8%: pre-tax profit of ¥2,978 million was taxed ¥1,011 million, against ¥329 million on ¥1,022 million a year earlier.

A ¥32.1 billion inventory build, funded by borrowing

The defining number of the half is not on the income statement. Columbia Works invested ¥32,132 million in real estate held for sale during the six months, including projects earmarked for delivery later in the current year. Total assets consequently rose ¥13,431 million to ¥80,308 million. Current assets alone grew ¥15,932 million to ¥69,611 million, driven by a ¥12,443 million increase in real estate for sale in progress — to ¥46,336 million — plus ¥1,894 million more completed real estate for sale, at ¥12,892 million, and ¥1,036 million more cash and deposits.

Non-current assets fell ¥2,501 million to ¥10,697 million, but that decline is largely a reclassification rather than a disposal: ¥1,034 million of buildings and structures, ¥1,826 million of land, ¥39 million of construction in progress and ¥0 million of other tangible assets were transferred into inventory during the half, with ¥21 million moving the other way from real estate for sale into land. Buildings fell ¥1,073 million and land ¥1,804 million as a result, while construction in progress rose ¥297 million.

The funding came from lenders. Current liabilities rose ¥10,473 million to ¥32,775 million, chiefly an ¥8,799 million increase in the current portion of long-term debt, to ¥19,017 million, and a ¥944 million rise in short-term borrowings, to ¥10,872 million. Non-current liabilities added ¥1,719 million to ¥28,854 million, with long-term debt at ¥28,064 million. Total liabilities finished at ¥61,630 million, up ¥12,192 million. Net assets rose ¥1,238 million to ¥18,678 million — retained earnings up ¥1,966 million from the period's profit, less ¥601 million of dividends — and shareholders' equity stood at ¥18,669 million. With assets growing faster than equity, the equity ratio fell to 23.3% from 26.1%.

Cash out of operations, cash in from lenders

Cash and equivalents ended the half at ¥8,885 million, up ¥1,030 million, but the composition of that increase tells the story. Operating activities consumed ¥9,109 million, against ¥6,943 million a year earlier: pre-tax profit of ¥2,978 million and a ¥272 million decrease in completed real estate for sale were overwhelmed by an ¥11,841 million increase in real estate for sale in progress, with ¥904 million of income taxes paid on top. Investing used ¥437 million, mainly ¥354 million of purchases of property, plant and equipment and ¥250 million of capital contributions paid.

Financing supplied ¥10,577 million, up from ¥7,479 million: ¥17,701 million of proceeds from long-term borrowings and a ¥944 million net increase in short-term borrowings, against ¥7,295 million of long-term repayments tied to property sales, ¥598 million of dividends paid and ¥142 million spent buying back stock — the company held 48,000 treasury shares at period-end, against none at December 2025, out of 7,716,600 shares issued. One entity left the consolidation during the half: the silent partnership operated by GK RC No.1 was deconsolidated on completion of its liquidation. The company reported no material subsequent events.

Guidance held, dividend lifted to ¥94

Full-year guidance is unchanged from the forecast published with the FY12/2025 results on February 12, 2026. For the twelve months to December 2026 the company still targets revenue of ¥55,400 million, up 49.4%, operating profit of ¥7,600 million, up 26.1%, ordinary profit of ¥6,670 million, up 30.2%, and net profit of ¥4,200 million, up 21.2%, for EPS of ¥544.28. The first half therefore represents 36.0% of the revenue target but 43.1% of the operating profit target and 46.8% of the net profit target — a profit run-rate slightly ahead of a straight-line pace, with the revenue gap to be closed by second-half deliveries out of the inventory now on the balance sheet.

The dividend is rising even as the balance sheet gears up. Columbia Works pays nothing at the interim stage — the second-quarter dividend was ¥0.00 in both years — and forecasts a year-end payment of ¥94.00 per share for FY12/2026 against the ¥78.00 actually paid for FY12/2025, an increase of 20.5% and unrevised from the previous forecast. On guided EPS of ¥544.28 that implies a payout ratio of roughly 17%. The company said it would hold an analyst briefing on August 12 and post the video to its website shortly afterwards; the semi-annual report is due to be filed on August 14, 2026. The interim figures are not subject to audit or review.

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.