Takara Standard lifts full-year earnings forecast on strong first half

Takara Standard announced an upward revision to its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026. Net sales are now projected at 250,000 million yen, up 1.2% from the previously announced forecast of 247,000 million yen. Operating profit is revised to 17,500 million yen (up 1.7%), ordinary profit to 17,800 million yen (up 1.7%), and profit attributable to owners of parent to 13,000 million yen (up 1.6%). Basic earnings per share are now expected to be 193.33 yen.

This positive revision is driven by strong first half results, with net sales reaching 123,142 million yen and operating profit at 8,714 million yen, representing significant year-over-year increases of 6.2% and 46.3% respectively. Sales performance was particularly strong in new construction detached houses and multi-family housing, coupled with improved gross profit from optional items and rationalization efforts. The company also announced an increase in its annual dividend to 100 yen per share for FYE3/2026, with interim and year-end dividends of 50 yen each, aiming for a payout ratio of around 50%.

The company plans aggressive capital investment of 12.3 billion yen for FYE3/2026, focusing on production efficiency and IT-related improvements. Takara Standard aims to achieve an ROE of 8.0% for FYE3/2027 and a PBR of 1.0 or higher, with a total payout ratio target of 130% for the current and next fiscal years, including approximately 11.0 billion yen in share buybacks.