Daiwa House raises full-year forecasts and dividend, plans Sumitomo Densetsu acquisition

Daiwa House Industry Co. has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026. The company now expects ordinary income to reach JPY 461,000 million, an increase from the previously projected JPY 430,000 million. Net income attributable to owners of the parent is also revised upward to JPY 290,000 million (JPY 468.74 per share) from JPY 273,000 million. This revision is primarily attributed to strong order trends and robust performance in the second quarter, including a large-scale land sale by its U.S. subsidiary and optimized real estate sales schedules.

In line with the improved earnings outlook, Daiwa House Industry also increased its annual dividend forecast for the fiscal year ending March 31, 2026, by JPY 5.00, raising it to JPY 175.00 per share from the previous JPY 170.00. This includes an ordinary dividend of JPY 165.00 and a 70th-anniversary commemorative dividend of JPY 10.00. The company maintains a dividend payout ratio target of 35% or higher, with a minimum of JPY 145.00 per share, reflecting its commitment to shareholder returns.

Additionally, the company announced a tender offer to acquire shares of Sumitomo Densetsu Co., Ltd., aiming to make it a wholly-owned subsidiary. This strategic move, valued at JPY 169,459 million, is intended to enhance Daiwa House Group's technological capabilities, expand its business and customer base, and secure high-value projects, particularly in data centers and semiconductor plants.