Joyful Honda (3191): FY2025 Results Summary — First Consolidated Year on Honda Acquisition, Operating Profit Falls on Upfront Investment

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Joyful Honda, a home center operator pursuing a “Specialty-driven Home Center model,” reported results for the fiscal year ended June 20, 2026. Note: The company’s fiscal year ends in June and it labels this period “FY2026”; this site classifies it as FY2025, the most recently completed full year. FY2026 was the company’s first year of consolidated reporting, following the acquisition of all shares of Honda Co., Ltd. on September 30, 2025 (deemed acquired on December 20, 2025, with results consolidated for December 21, 2025 to June 20, 2026); accordingly, year-on-year comparisons are made against non-consolidated FY2025 results. Consolidated net sales rose to ¥132,817 million (103.0% YoY), reaching 101.4% of forecast, while consolidated operating profit declined to ¥8,732 million (81.2% YoY) on higher costs from the Honda consolidation and upfront investment in human capital. Consolidated profit was ¥9,002 million (108.1% YoY).

Consolidated Results (Full-Year Actual)

Consolidated net sales reached 101.4% of the forecast and consolidated operating profit reached 99.2% of the forecast. Net sales increased due to the consolidation of Honda Co., Ltd., the opening of new stores, and growing demand for naphtha-derived products, while operating profit decreased due to higher costs associated with the Honda consolidation and investments in human capital. FY2025 figures are non-consolidated; the FY2026 column and the reference Honda Co., Ltd. contribution are consolidated. (Millions of yen; YoY shown as amount / index, where 100.0 = flat.)

Item	FY2025 (Non-consol.)	FY2026 (Consol.)	YoY Change (Amount / Index)	vs. Forecast (Index)
Net Sales	128,980	132,817	+3,836 / 103.0	101.4
Gross Profit	40,985	41,784	+798 / 101.9	101.7
Operating Revenue	6,758	7,071	+313 / 104.6	101.0
Operating Gross Profit	47,743	48,856	+1,112 / 102.3	101.6
SG&A Expenses	36,995	40,124	+3,128 / 108.5	102.1
Operating Profit	10,748	8,732	(2,016) / 81.2	99.2
Ordinary Profit	11,878	9,954	(1,923) / 83.8	99.5
Profit before Income Taxes	11,695	12,178	+482 / 104.1	102.3
Profit	8,327	9,002	+675 / 108.1	102.3

On a Joyful Honda non-consolidated basis, net sales were ¥130,146 million (100.9% YoY) with cumulative existing-store sales at 100.1%, while operating profit was ¥8,880 million (82.6% YoY) as SG&A rose 106.1% on higher personnel expenses and costs associated with new store openings.

Item (Non-consolidated)	FY2025	FY2026	YoY Change (Amount / Index)
Net Sales	128,980	130,146	+1,165 / 100.9
Gross Profit	40,985	41,061	+76 / 100.2
Operating Revenue	6,758	7,054	+296 / 104.4
Operating Gross Profit	47,743	48,116	+372 / 100.8
SG&A Expenses	36,995	39,235	+2,240 / 106.1
Operating Profit	10,748	8,880	(1,867) / 82.6
Ordinary Profit	11,878	10,079	(1,798) / 84.9
Profit before Income Taxes	11,695	10,363	(1,331) / 88.6
Profit	8,327	7,188	(1,139) / 86.3

Segment Results (Net Sales by Product Group, Non-consolidated)

Materials & Professional Tools and Garden & Farm grew, driven by the impact of new specialty store openings. Net sales by product group are shown on a non-consolidated basis (millions of yen; figures in parentheses are percentage of net sales).

Product Group	FY2026	FY2025	% of Net Sales (FY2026)
Housing (total)	73,673	72,776	56.6
Materials & Professional Tools	25,278	24,221	19.4
Interior & Living	17,191	17,251	13.2
Garden & Farm	17,286	16,947	13.3
Renovation & Exterior	13,916	14,355	10.7
Lifestyle (total)	56,473	56,204	43.4
Daily Goods	38,790	38,532	29.8
Pets & Leisure	16,589	16,708	12.7
Other	1,093	964	0.8
Total	130,146	128,980	100.0

Full-Year Forecast

For the following fiscal year (the company’s FY2027 forecast, consolidated), Joyful Honda projects net sales of ¥140,000 million and operating profit of ¥8,600 million, with profit of ¥6,600 million. FY2026 recorded approximately ¥1.94 billion in gain on bargain purchase and approximately ¥450 million in gain on sale of investment securities as extraordinary income, which are not assumed to recur. (Millions of yen; figures in parentheses in the source are percentage of net sales.)

Item (Consolidated)	FY2026 (Actual)	FY2027 (Forecast)
Net Sales	132,817	140,000
Gross Profit	41,784	44,500
SG&A Expenses	40,124	43,100
Operating Profit	8,732	8,600
Ordinary Profit	9,954	9,800
Profit	9,002	6,600
EBITDA	12,005	12,300
EBITDA Margin	9.0%	8.8%
ROE	7.1%	5.2%

Shareholder Returns

The company’s dividend policy targets a DOE (dividend on equity) ratio of 4.0% or higher, raised from 2.5% and effective from the FY2026 interim dividend, with progressive dividends in line with sustainable profit growth. The FY2026 interim dividend was ¥42.00 per share. Because the company has executed an MOU with ARCLANDS CORPORATION on a business integration through the establishment of a joint holding company (share transfer), and dividends will be paid by the joint holding company after its establishment, the year-end dividend for FY2027 is yet to be determined; the FY2027 interim dividend forecast is ¥42.00 per share, unchanged from the previous fiscal year.

Topics: Honda Consolidation, ARCLANDS Integration, and Store Strategy

FY2026 was the first year that Honda Co., Ltd. was consolidated as a subsidiary; on a reference basis, Honda contributed net sales of ¥2,832 million with an operating margin of (2.3)% in FY2026, and the company aims to achieve profitability at Honda in FY2027 through operational efficiency and stronger procurement. The company has executed an MOU on a business integration with ARCLANDS CORPORATION via a joint holding company, and on July 3, 2026 revised the schedule for establishing the joint holding company through a share transfer. In FY2026 the company opened seven specialty stores (including one new store format), against a goal of 20 to 30 new stores by FY2028. In Q4 (April to June), demand for naphtha-derived products expanded due to the situation in the Middle East, contributing approximately ¥1.75 billion. As of June 20, 2026, the company operated 16 home centers and 17 specialty stores with 4,835 consolidated employees.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.