Nihon House Halves Its Q1 Net Loss as Four Hotel Transfers Lift Full-Year Net Guidance 169%

Revenue up 9.0%, and every loss line roughly halved

Nihon House Holdings Co., Ltd. (TSE: 1873), the homebuilder behind the Japanese-cypress house it sells as 「日本ハウス檜百年住宅」 and the owner of a small group of resort hotels, published consolidated results for the first quarter of FY4/2027 — May 1 to July 31, 2026 — on September 4, 2026 under Japanese GAAP. Revenue rose 9.0% to ¥6,664 million. The quarter was still a loss at every line, but a materially smaller one: an operating loss of ¥85 million against ¥234 million a year earlier, an ordinary loss of ¥136 million against ¥306 million, and a net loss attributable to owners of the parent of ¥161 million against ¥320 million. Loss per share was ¥4.03 against ¥8.01, and the comprehensive loss narrowed to ¥60 million from ¥230 million.

The improvement came from the top line rather than from cost cutting. Gross profit rose 4.7% to ¥2,772 million on cost of sales of ¥3,891 million, while selling, general and administrative expenses were almost flat at ¥2,858 million (−0.8%) — a ¥125 million increase in gross profit and a ¥23 million reduction in overhead between them account for almost all of the ¥149 million narrowing in the operating loss. Below the operating line, non-operating income of ¥20 million was more than offset by non-operating expenses of ¥71 million, of which interest expense was ¥52 million against ¥47 million. There was no extraordinary income at all in the quarter — the extraordinary lines carried only ¥2 million of losses on the retirement of fixed assets — leaving a pre-tax loss of ¥139 million and an income-tax charge of ¥16 million.

Housing did the work; the hotels lost less

Housing supplied ¥5,651 million of the ¥6,664 million top line, up 8.3%, which the company attributes chiefly to the larger order backlog carried into the year; segment profit nearly doubled, up 97.7% to ¥266 million. Hotels grew revenue 15.0% to ¥973 million, mainly on higher room occupancy, and cut the segment operating loss to ¥200 million from ¥232 million. Other — a solar power business — earned ¥30 million on revenue of ¥39 million, both down, by 20.4% and 16.7%. Worth separating out: the three reported segments together made a profit of ¥96 million, against a loss of ¥59 million a year ago. What turns that into an ¥85 million group operating loss is ¥182 million of adjustments, of which ¥176 million is corporate overhead allocated to no segment.

The forward indicator is weaker than the revenue line. Parent-company order intake in the housing business fell 18.1% to ¥5,129 million: the construction division took ¥4,481 million, down 23.7%, while the smaller real-estate division took ¥648 million, up 69.2%. This quarter's revenue growth was drawn from backlog, and the backlog is being refilled more slowly. On the product side the company is pushing 「日本ハウス檜百年住宅」, its cypress-framed, highly insulated house sold on a three-part quality promise, and added a single-storey model, 平屋の家「悠華」, in August 2026. Its trunk-room business — run with エリアリンク株式会社 (Arealink), operator of the ハローストレージ self-storage chain — now spans 18 sites, and 27 more units were added at the 札幌二十四軒 location in July 2026.

A balance sheet ¥2,538 million smaller

Total assets fell 5.7% to ¥41,816 million from ¥44,354 million at the April 30, 2026 year-end — current assets down ¥2,385 million and fixed assets down ¥150 million. Most of that is cash: cash and deposits fell to ¥5,229 million from ¥7,034 million, with receivables lower and real estate held for sale down ¥366 million, partly offset by higher costs on uncompleted construction contracts and higher raw materials and supplies. Liabilities fell ¥2,198 million to ¥19,189 million, led by a ¥1,950 million reduction in short-term borrowings, to ¥2,388 million, and by lower trade payables. Net assets slipped 1.5% to ¥22,626 million as retained earnings absorbed the quarter's loss and the year-end dividend; but because the balance sheet shrank faster than equity did, the equity ratio improved to 53.7% from 51.4%. No cash flow statement is prepared for the first quarter; depreciation was ¥374 million against ¥376 million.

Why the ordinary and net forecasts point in opposite directions

Guidance is unchanged from the version published on July 30, 2026, which itself revised the forecast of June 12, 2026. For the full year to April 30, 2027 the company expects revenue of ¥32,520 million (+9.8%), operating profit of ¥1,910 million (−19.8%), ordinary profit of ¥2,110 million (−2.0%) and net profit of ¥3,610 million (+169.3%), for earnings per share of ¥90.25. Those last two do not point the same way, and the filing says why: the July 30 revision was announced under the heading of an extraordinary gain on the transfer of fixed assets and an extraordinary loss on their retirement. On that day the company signed transfer contracts for four hotels — ホテル森の風那須, ホテル四季の館那須, ホテル四季の館箱根芦ノ湖 and ホテル森の風箱根仙石原 — as part of a review of the profitability, prospects and investment efficiency of each hotel it owns. It also plans to partly demolish some of the fixed assets of ホテル森の風鶯宿, which it is keeping, to raise that hotel's profitability and simplify its operation. Net profit is therefore guided above ordinary profit — ¥3,610 million against ¥2,110 million — because an extraordinary gain sits between the two lines. The tanshin does not quantify that gain or the offsetting retirement loss; both are in the separate July 30 release.

The half-year plan makes the timing explicit. For the six months to October 31, 2026 the company expects revenue of ¥14,880 million (+3.3%), operating profit of ¥320 million (−38.0%), ordinary profit of ¥630 million (+36.5%) and net profit of ¥2,900 million, for which the filing prints no year-on-year comparison, at earnings per share of ¥72.50. Set against a first-quarter net loss of ¥161 million, that implies roughly ¥3,061 million of net profit in the second quarter alone, and it books ¥2,900 million of the year's ¥3,610 million in the first half. Ordinary profit is also guided above operating profit in both periods — ¥630 million against ¥320 million for the half, ¥2,110 million against ¥1,910 million for the year.

The annual dividend is held at ¥12.00, with no revision from the previously announced forecast, but its shape changes: FY4/2026 paid ¥5.00 at the interim and ¥7.00 at the year-end, while FY4/2027 is guided at ¥6.00 and ¥6.00 — the same total, weighted a little earlier in the year.

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.