Sekisui House (1928N) Q1 2026 Earnings Report

The quarter shows a mix of clear strengths (record Q1 revenue from the MDC acquisition, solid domestic detached and rental management performance, high occupancy and strong ZEH adoption) but also material near-term challenges (notably the US single-family delivery and margin shortfall, lower consolidated profits, negative operating/free cash flow and higher interest-bearing debt). Management has identified causes (lower backlog entering the year, increased incentives/rate buydowns, goodwill/amortization impacts) and signaled mitigations (incentive/price strategy adjustments, asset sales and operational integration), but uncertainty remains on the pace of recovery in the US. Overall, the call balances meaningful growth drivers against significant profitability and cash-flow headwinds.

Management kept full‑year targets under review but flagged the U.S. single‑family business as the main risk and outlined concrete targets and assumptions: the group still aims for ~15,000 U.S. home deliveries/受注 this year (2,769 delivered in Q1, backlog+着工済み ≈11,000), noting MDC deliveries fell from 2,395 to 1,785 (‑610, ‑25.5%), about 70% of current offerings have rate buy‑downs (which reduced MDC gross margin by ~3pp and OP rate by ~4.1pp), and MDC’s reported SF operating profit was ¥3bn (¥115bn excluding goodwill/amortization impacts); goodwill and trademark amortization run ~¥170–180bn p.a. (~¥45bn/qtr) and acquisition‑related inventory COGS recognition is expected ~¥150–160bn this year (Q1 ≈¥46bn; total allocation from the acquisition ≈¥500bn, ~¥250bn recognized last year). Management said City Ridge tower sales to the REIT will contribute in Q2, other multi‑family disposals are targeted mainly in Q4, Australian backlog will be recognized mainly in Q2–Q3, and they are preparing additional domestic urban‑development disposals from a pool of sellable assets of roughly ¥300bn (≈¥3,000億) while planning a formal review at the normal September update.