Margins up, sales down
First Corporation Inc. (TSE: 1430) reported consolidated results for the first quarter of FY5/2027, June 1 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales fell 3.1% to ¥7,188 million, but gross profit rose 18.2% to ¥953 million and operating profit 9.2% to ¥470 million. Interest expense of ¥63 million on higher borrowings pulled ordinary profit down 3.3% to ¥413 million, and net profit attributable to owners of the parent fell 4.8% to ¥269 million, or ¥22.24 per share against ¥23.73.
Condominium starts in the Tokyo area fell 6.8% in the first half of 2026 and supply slipped 0.8%, a fifth straight year of decline, but the company says enquiries remain brisk and that, with a share of about 3% of the Tokyo area, it has ample room to secure work. The quarter is the second year of its six-year plan, First VISION 2031, which targets sales of ¥50 billion by FY5/2028 and ¥100 billion by FY5/2031.
Construction and real estate
Construction sales rose 5.0% to ¥6,010 million and segment profit 5.5% to ¥692 million. The company won two contracts worth ¥20,611 million in the quarter, taking its order backlog to ¥42,814 million, and said it is on track for its ¥35 billion order target for the year. Real-estate sales fell 34.8% to ¥1,072 million, but segment profit rose 19.7% to ¥91 million.
Balance sheet and capital alliance
Total assets rose to ¥39,800 million from ¥32,284 million at the end of May, as real estate under development grew ¥3,406 million and cash ¥3,050 million, funded by ¥4,831 million of new long-term borrowing and ¥3,000 million of short-term borrowing. On August 10 the company disposed of 600,000 treasury shares to Chuo-Nittochi under a capital and business alliance. Net assets rose to ¥11,387 million, but the equity ratio fell to 28.6% from 34.5% on the larger balance sheet.
Outlook and dividend
First Corporation kept its FY5/2027 forecast of net sales of ¥44,000 million (+20.8%), operating profit of ¥3,500 million (+20.9%), ordinary profit of ¥3,000 million (+11.5%) and net profit of ¥2,070 million (+10.0%). It plans a year-end dividend of ¥51, up from ¥48.
| Metric | Q1 FY5/2027 | Q1 FY5/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 7,188 | 7,421 | −3.1% |
| Gross profit (¥ million) | 953 | 806 | +18.2% |
| Operating profit (¥ million) | 470 | 430 | +9.2% |
| Ordinary profit (¥ million) | 413 | 427 | −3.3% |
| Net profit attrib. to owners of parent (¥ million) | 269 | 283 | −4.8% |
| EPS (¥) | 22.24 | 23.73 | −6.3% |
| Construction — revenue (¥ million) | 6,010 | 5,726 | +5.0% |
| Construction — segment profit (¥ million) | 692 | 657 | +5.5% |
| Real estate — revenue (¥ million) | 1,072 | 1,645 | −34.8% |
| Real estate — segment profit (¥ million) | 91 | 76 | +19.7% |
| Total assets (¥ million) | 39,800 | 32,284 | +23.3% |
| Net assets (¥ million) | 11,387 | 11,145 | +2.2% |
| Equity ratio | 28.6% | 34.5% | −5.9 pt |
| FY5/2027 guidance — revenue (¥ million) | 44,000 | — | +20.8% |
| FY5/2027 guidance — operating profit (¥ million) | 3,500 | — | +20.9% |
| FY5/2027 guidance — ordinary profit (¥ million) | 3,000 | — | +11.5% |
| FY5/2027 guidance — net profit (¥ million) | 2,070 | — | +10.0% |
| Annual dividend per share (¥) | 51.00 | 48.00 | +6.3% |
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.