Sumitomo Forestry (1911): FY2025 Results Summary — Metricon Lifts Sales While the U.S. Slowdown Weighs on Profits

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

Note: Sumitomo Forestry uses a December fiscal year-end and labels the year covered here as “FY12/2025”; this site classifies it as FY2025. All figures below follow the labels used in the company’s English-language full-year results presentation dated February 16, 2026.

Sumitomo Forestry reported FY12/2025 net sales of 2,267.6 billion yen, up 10.4% year on year, which the company attributes to the consolidation effect of Metricon in Australia and the continued strong performance of the domestic housing business. Recurring income declined 11.6% year on year to 174.9 billion yen and net income declined 8.5% to 106.7 billion yen due to the sluggish U.S. market, although both exceeded the full-year forecast announced in August 2025. For FY12/2026 the company forecasts net sales of 2,590.0 billion yen and recurring income of 160.0 billion yen, a downward revision from the target figures announced in February 2025. The annual dividend for FY12/2025 was revised to 53 yen per share.

Consolidated Results (Full-Year Actual)

Net sales rose year on year, while operating income, recurring income and net income all decreased. Against the full-year forecast announced on August 7, 2025, net sales came in 2.3% lower, but operating income was 2.9% higher, recurring income 2.9% higher and net income 11.1% higher. In the presentation, “Net income attributable to owners of parent” is expressed as “Net income.”

Item (billion yen)	FY12/2025	FY12/2024	Year-on-year change	Full-year forecast (Announced on August 7, 2025)	Change from forecast
Net sales	2,267.6	2,053.7	+10.4%	2,320.0	-2.3%
Operating income	168.7	194.6	-13.3%	164.0	+2.9%
Recurring income	174.9	198.0	-11.6%	170.0	+2.9%
Net income	106.7	116.5	-8.5%	96.0	+11.1%

Segment Results

Global Construction and Real Estate remained the largest segment by net sales at 1,411.1 billion yen, up 13.8% year on year, but its recurring income fell 18.8% to 119.7 billion yen. Housing net sales rose 7.9% to 585.4 billion yen with recurring income up 17.3% to 41.3 billion yen, and Timber and Building Materials recurring income rose 27.5% to 12.8 billion yen on broadly flat net sales of 253.0 billion yen. Environment and Resources recorded recurring income of -1.3 billion yen.

Segment (billion yen)	Net sales FY12/2025	Net sales FY12/2024	Change	Recurring income FY12/2025	Recurring income FY12/2024	Change
Timber and Building Materials	253.0	253.2	-0.1%	12.8	10.0	+27.5%
Housing	585.4	542.3	+7.9%	41.3	35.2	+17.3%
Global Construction and Real Estate	1,411.1	1,240.0	+13.8%	119.7	147.5	-18.8%
Environment and Resources	26.8	27.0	-0.7%	-1.3	0.2	—
Other	28.1	27.3	+2.9%	4.9	0.7	+593.1%
Adjustment	-36.8	-36.1	—	-2.4	4.4	—
Total	2,267.6	2,053.7	+10.4%	174.9	198.0	-11.6%

FY2026 Forecast

Citing a slowdown in the U.S. housing business, which it describes as the key driver of its business, the company revised its FY12/2026 full-year earnings forecast downward from the target figures announced in February 2025. The presentation notes that the FY12/2026 recurring income forecast was revised downward by 80 billion yen from the Medium-Term Management Plan target of 240 billion yen, and that the forecast does not include the impact of the acquisition of shares (subsidiarization) of Tri Pointe Homes, Inc., announced on February 13, 2026.

Item (billion yen)	FY12/2026 Forecast	FY12/2025 Results	Year-on-year change	Change from previous forecast
Net sales	2,590.0	2,267.6	+14.2%	-9.7%
Operating income	157.0	168.7	-6.9%	—
Recurring income	160.0	174.9	-8.5%	-33.3%
Net income	95.0	106.7	-10.9%	-36.2%

Shareholder Returns

The annual dividend for FY12/2025 was revised to 53 yen per share, an increase of 3 yen per share from the dividend forecast of 50 yen per share announced in August 2025. The company states there is no change to the shareholder return policy set out in the current Medium-Term Management Plan, which comprises a dividend payout ratio of 30% or higher and a minimum annual dividend per share of 50 yen. For the FY12/2026 annual dividend forecast, the company has applied the minimum dividend of 50 yen per share. A stock split was carried out at a ratio of three shares for every one share of common stock with June 30, 2025 as the record date, and historical dividend records have been retroactively adjusted accordingly.

Item	FY12/2024	FY12/2025	FY12/2026 (Forecast)
Interim dividend (yen per share)	21.7	25	25
Year-end dividend (yen per share)	26.7	28	25
Annual dividend (yen per share)	48.3	53	50
Dividend payout ratio	25.5%	30.4%	32.4%

Medium-Term Management Plan and Business Initiatives

FY12/2025 was the first year of the Medium-Term Management Plan (Mission TREEING 2030 Phase 2). The company says it made progress on decarbonization efforts both domestically and internationally and deepened its global expansion through M&A and new project investments — including the capital and business alliance with GEOLIVE Group, the acquisition of LeTech, making the Teal Jones Plain Dealing sawmill in the U.S. a subsidiary, and township development projects in Vietnam and Indonesia — while stating that challenges remained in “enhancement of earning power” and “strengthening management base.”

In the U.S. single-family homes business, the company is strengthening sales of product lines with price advantages such as new townhome models and narrow-front single-family homes, and is securing more communities: for the four U.S. group homebuilders, the number of communities was 310 in FY2024 and 334 in FY2025, with 398 planned for FY2026, a +19% increase compared to 2025, while absorption was 2.8, 2.4 and 2.5 respectively. In Australia, the recurring income to net sales ratio for the three-company total (Henley, Wisdom, SPG) reached 10.3% in FY12/2025 and Metricon reached 5.5%, with the policy rate lowered from 4.35% to 3.60% in FY2025. In Asia, the company targets recurring income of 10 billion yen in 2030, promoting the Hoa Lan project in Vietnam (approximately 6,700 planned units, with completion and delivery sequentially through 2034) and the Kota Wisata ECOVIA township near Jakarta in Indonesia (approximately 4,100 planned units, delivery scheduled to start from the end of 2027).

In the domestic housing business, the one-story homes order ratio was 46.0% and the Forest Selection order ratio was 30.2% in FY12/2025. The FITP business operated 11 factories as of FY12/2025 against an FY12/2027 target of 15 or more, with sales within Sumitomo Forestry Group companies accounting for 23.4% in FY12/2025. The Real Estate Division was newly established on January 1, 2026. The long-term vision sets an FY2030 recurring income target of ¥350.0 billion, alongside targets of 1 million ha of owned and managed forest area, 65,000 housing units sold yearly, and 1 million cubic meters of domestic timber usage. On governance, strategically-held shares represented 9% of net assets as of the end of FY12/2025.

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.