Haseko (1808): FY2025 Results Summary — Record Sales and Profit Surge on Construction Margin Recovery

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Haseko Corporation booked record consolidated net sales of JPY 1,273.1 billion in FY2025 (up 8.1% YoY), with operating profit rising 16.6% YoY to JPY 98.7 billion and ordinary profit up 12.8% YoY to JPY 94.1 billion. Profit attributable to owners of parent surged 59.2% YoY to JPY 54.8 billion, as the absence of the large extraordinary losses recorded in FY2024 contributed to the increase, even though FY2025 included extraordinary losses of JPY 4.1 billion. Non-consolidated orders received also reached a record high of JPY 726.7 billion (up 23.9% YoY), driven by growth in private-sector condominium orders. For FY2026, the company forecasts further record net sales of JPY 1,380.0 billion and record ordinary profit of JPY 105.0 billion.

Consolidated Results (Full-Year Actual)

Net sales rose to a record high on increases in net sales from both completed construction contracts and real estate sales. Higher gross profit from completed construction contracts and real estate sales lifted operating profit and ordinary profit. Profit attributable to owners of parent increased significantly, mainly reflecting the absence of the large extraordinary losses booked in FY2024.

Item	FY2025	FY2024	Change
Net sales	JPY 1,273.1 bn	JPY 1,177.4 bn	+JPY 95.8 bn (+8.1%)
Operating profit	JPY 98.7 bn	JPY 84.7 bn	+JPY 14.0 bn (+16.6%)
Operating profit ratio	7.8%	7.2%	+0.6pt
Ordinary profit	JPY 94.1 bn	JPY 83.4 bn	+JPY 10.6 bn (+12.8%)
Ordinary profit ratio	7.4%	7.1%	+0.3pt
Profit attributable to owners of parent	JPY 54.8 bn	JPY 34.5 bn	+JPY 20.4 bn (+59.2%)
EPS (yen)	¥204.54	¥126.20	+¥78.34 (+62.1%)
ROE	10.0%	6.6%	+3.4pt
Orders received (Non-consolidated)	JPY 726.7 bn	JPY 586.6 bn	+JPY 140.1 bn (+23.9%)
Annual dividend per share	¥95	¥85	+¥10
Dividend payout ratio	46.4%	67.4%	(21.0pt)

Segment Results

Net sales increased across all four operating segments. The Construction-Related Business and Real Estate-Related Business were the largest contributors to the increase in consolidated operating profit (including investment profit/loss on the equity method for overseas business), which rose 17.2% YoY to JPY 104.3 billion. The Overseas Business segment continued to record an operating loss, primarily due to losses in Hawaii, while real estate development on the US mainland remains in the upfront investment phase.

Segment	Metric	FY2025	FY2024	Change
Construction-Related Business	Net sales	JPY 900.9 bn	JPY 841.7 bn	+JPY 59.2 bn (+7.0%)
Real Estate-Related Business	Net sales	JPY 293.2 bn	JPY 252.7 bn	+JPY 40.5 bn (+16.0%)
Condominium Management and Operation Business	Net sales	JPY 165.4 bn	JPY 152.0 bn	+JPY 13.4 bn (+8.8%)
Overseas Business	Net sales	JPY 4.3 bn	JPY 3.5 bn	+JPY 0.8 bn (+24.5%)
Total Net Sales by Segments	Net sales	JPY 1,363.8 bn	JPY 1,249.9 bn	+JPY 113.9 bn (+9.1%)
Construction-Related Business	Operating profit*	JPY 68.5 bn	JPY 56.3 bn	+JPY 12.2 bn (+21.6%)
Real Estate-Related Business	Operating profit*	JPY 35.6 bn	JPY 32.6 bn	+JPY 3.0 bn (+9.2%)
Condominium Management and Operation Business	Operating profit*	JPY 8.2 bn	JPY 6.5 bn	+JPY 1.7 bn (+26.6%)
Overseas Business	Operating profit*	JPY (8.0) bn	JPY (6.4) bn	(1.6) bn (-%)
Total Operating Profit by Segments	Operating profit*	JPY 104.3 bn	JPY 89.0 bn	+JPY 15.3 bn (+17.2%)

FY2026 Forecast

Haseko forecasts net sales of JPY 1,380.0 billion and ordinary profit of JPY 105.0 billion, a new record high, driven by higher net sales of completed construction contracts and improved gross profit margins. Non-consolidated orders received are forecast to reach a record high for the fourth consecutive fiscal year, and ROE is expected to improve.

Item	Forecast	FY2025 (Actual)	YoY Change
Net sales	JPY 1,380.0 bn	JPY 1,273.1 bn	+JPY 106.9 bn (+8.4%)
Operating profit	JPY 110.0 bn	JPY 98.7 bn	+JPY 11.3 bn (+11.4%)
Operating profit ratio	8.0%	7.8%	+0.2pt
Ordinary profit	JPY 105.0 bn	JPY 94.1 bn	+JPY 10.9 bn (+11.6%)
Ordinary profit ratio	7.6%	7.4%	+0.2pt
Profit attributable to owners of parent	JPY 66.0 bn	JPY 54.8 bn	+JPY 11.2 bn (+20.4%)
EPS (yen)	¥249.39	¥204.54	+¥44.85 (+21.9%)
ROE	11.3%	10.0%	+1.3pt
Orders received (Non-consolidated)	JPY 730.0 bn	JPY 726.7 bn	+JPY 3.3 bn (+0.5%)
Annual dividend per share	¥100	¥95	+¥5
Dividend payout ratio	40.1%	46.4%	(6.3pt)

Shareholder Returns

Under the medium-term business plan ‘HASEKO Evolution Plan’ (FY2025-FY2030), Haseko targets a total return ratio of approximately 50% of profit attributable to owners of parent over the six fiscal periods of the plan, aims to continue stable dividends and implement progressive dividends during the plan period, and will purchase treasury stock flexibly as needed. The year-end dividend per share for FY2025 was increased by JPY 5 from the initial forecast to JPY 50, bringing the annual dividend per share to JPY 95 (payout ratio 46.4%); total shareholder return for FY2025 was 83.3%. The Company also purchased JPY 20.0 billion of treasury shares during FY2025 as part of initiatives to improve ROE. For FY2026, the annual dividend per share is planned at JPY 100 (up JPY 5 YoY), with a payout ratio of 40.1%.

Medium-Term Plan / Topics

In the first year of the ‘HASEKO Evolution Plan,’ the Group implemented initiatives under five themes: promoting further growth and deepening of the construction business, expanding and improving the quality of the real estate business, promoting growth of the condominium management and operation business, monetizing the overseas business, and challenging new business areas. Highlights included record-high non-consolidated construction orders of JPY 726.7 billion with construction profit margins recovering beyond expectations, the start of operations at a precast concrete (PCa) plant, an order for a large-scale data center project, and the acquisition of a 30% stake in a US real estate developer engaged in rental apartment development and construction. The ROE target under the plan is to maintain a level above 10% and to reach approximately 13% by FY2030. Regarding the situation in the Middle East, the Group states that while it warrants continued close monitoring, the impact on orders and construction activities is currently considered to be limited.

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.