Interim report
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31 , 2027 [ Japanese GAAP ] Accounting Standards Fo FASF August 6 , 2026 Name of Listed Company : Representative : Code No .: URL : Listed Exchanges : Contact : Daiwa House Industry Co. , Ltd. Hirotsugu Otomo , President and COO 1925 https://www.daiwahouse.com/English/ Prime Market of the Tokyo Stock Exchange Yuji Yamada , Managing Executive Officer E - mail to : dh.ir.communications@daiwahouse.jp Scheduled date of commencement of dividend payment : Supplemental documents for the financial results provided : Results briefing for the period under review provided : 1 . Yes Yes ( for institutional investors and securities analysts ) ( Amounts below one million yen are omitted ) Consolidated Results of Operation for the First Three Months Ended June 30 , 2026 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Earnings Results ( % figures represent year - on - year change ) Net sales Operating income Ordinary income Net income attributable to owners of the parent Three months ended : Millions of yen June 30 , 2026 June 30 , 2025 1,408,385 1,292,144 % 9.0 Millions of yen 0.4 130,644 118,116 % 10.6 Millions of yen 123,000 % 9.9 Millions of yen % -3.1 111,939 -6.2 83,194 76,239 9.1 -16.6 Note : Comprehensive income : Three months ended June 30 , 2026 : 105,833 million yen ( 188.1 % ) Three months ended June 30 , 2025 : 36,735 million yen ( -68.9 % ) Basic net income per share Diluted net income per share Three months ended : June 30 , 2026 Yen 134.33 Yen June 30 , 2025 123.25 ( 2 ) Consolidated Financial Conditions As of June 30 , 2026 March 31 , 2026 Total assets Millions of yen 8,616,366 8,412,419 Net assets Net assets ratio Millions of yen 3,002,624 3,022,275 % 33.8 ( Reference ) Net assets ratio = ( Net assets - Non - controlling interests ) / Total assets × 100 34.4 ( Net assets - Non - controlling interests ) is as follows . June 30 , 2026 : 2,909,582 million yen ; March 31 , 2026 : 2,896,744 million yen 2 . Dividends Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( forecasts ) Dividend per share End of 1st quarter ( June 30 ) End of 2nd quarter ( Sept. 30 ) Yen Yen 75.00 End of 3rd quarter ( Dec. 31 ) Fiscal year - end ( Mar. 31 ) Annual Yen Yen 100.00 Yen 175.00 86.00 46.00 Notes : 1. Revised dividend forecast for the quarter under review : Yes 2. Dividend for the fiscal year ended March 2026 : Ordinary dividend 165.00 yen ; 70th anniversary commemorative dividend 10.00 yen 3. At a meeting of its Board of Directors held on May 13 , 2026 , the Company resolved to conduct a two - for - one stock split of its common stock , with September 30 , 2026 set as the record date and October 1 , 2026 as the effective date . The fiscal year - end dividend per share for
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) the fiscal year ending March 31, 2027 shown above has been calculated on a post –stock split basis. The annual dividend per share for the fiscal year ending March 31, 2027 is not presented, as the interim dividend and the fiscal year-end dividend cannot be simply aggregated due to the implementation of the stock split. If the stock split were not taken into account, the fiscal year-end dividend per share for the fiscal year ending March 31, 2027 would be 92.00 yen, and the annual dividend per share would be 178.00 yen. 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2027 (From April 1, 2026 to March 31, 2027) (% figures represent year-on-year change) Net sales Operating income Ordinary income Net income attributable to owners of the parent Basic net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2027 5,900,000 5.8 460,000 -25.2 402,000 -29.7 266,000 -24.1 214.74 Notes: 1. Revised forecast for the quarter under review: Yes 2. In the above consolidated earnings forecasts, the results for the previous fiscal year, which serve as the basis for the perc entage figures indicating the year-on-year changes, include the amortization of actuarial differences for retirement benefits, etc. arising in the previous fiscal year (decrease of 115,675 million yen in operating expenses). Excluding this impact, the year -on-year changes are respectively: operating income -7.9%, ordinary income -11.9%, and net income attributable to owners of the parent -2.0%. For details, please refer to the section of “1. Summary of Earnings Results, etc. (3) Consolidated Earnings Forecasts and Other Forward-Looking Statements” on page 5 of “the Attached Material.” 3. Basic net income per share in the consolidated earnings forecasts shown above has been calculated on a post –stock split basis as noted in “2. Dividends.” If the stock split were not taken into account, basic net income per share would be 429.48 yen. Notes: (1) Significant Changes in Scope of Consolidation during the Period under Review: None (2) Application of Accounting Methods Unique to the Preparation of the Quarterly Consolidated Financial Statements: None (3) Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective Restatement 1) Changes in accounting policies applied due to amendment of accounting standards: None 2) Changes in accounting policies due to reasons other than 1): None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Number of Issued and Outstanding Shares (Common Stock) 1) Number of shares at the end of the period (including treasury stock) As of June 30, 2026 659,636,182 shares As of March 31, 2026 659,636,182 shares 2) Number of treasury stock at the end of the period As of June 30, 2026 40,289,824 shares As of March 31, 2026 40,289,087 shares 3) Average number of shares during the period Three months ended June 30, 2026 619,346,673 shares Three months ended June 30, 2025 618,583,480 shares * Review of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Remarks on appropriate use of consolidated earnings forecasts and other special matters (Notes regarding earnings forecasts) Consolidated earnings forecasts are based on assumptions in light of the information available as of the date of announcement of this material and the factors of uncertainty that may possibly impact the future results of operation. These statements do not mean that the Company pledges to realize such statements. Actual results may differ significantly from those presented herein as a consequence of numerous factors such as the financial market, economic conditions, competitor situations and fluctuations in land prices. For the suppositions that form the assumptions for earnings forecasts, please refer to the section of “1. Summary of Earnings Results, etc. (3) Consolidated Earnings Forecasts and Other Forward-Looking Statements” on page 5 of
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) “the Attached Material.” (Obtaining supplementary explanatory materials) The Company plans to hold a briefing for institutional investors and securities analysts on August 6, 2026. Financial results presentation materials to be distributed at the briefing will be posted on the Company’s official website at the same time.
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 1 Contents of the Attached Material 1. Summary of Earnings Results, etc. ............................................................................................................. 2 (1) Summary of Consolidated Earnings Results for the Period under Review............................................... 2 (2) Summary of Financial Conditions for the Period under Review .............................................................. 5 (3) Consolidated Earnings Forecasts and Other Forward-Looking Statements.............................................. 5 2. Consolidated Financial Statements and Main Notes .................................................................................. 6 (1) Consolidated Balance Sheets .................................................................................................................... 6 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............... 8 (3) Notes ....................................................................................................................................................... 10 Notes on Quarterly Consolidated Balance Sheet ................................................................................ 10 Notes on Segment Information, etc. ................................................................................................. 10 Notes on Significant Changes in the Amount of Shareholders’ Equity .............................................. 11 Notes on Premise of Going Concern .................................................................................................. 11 Notes on Statement of Cash Flows ..................................................................................................... 11
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 2 1. Summary of Earnings Results, etc. (1) Summary of Consolidated Earnings Results for the Period under Review During the first quarter of the fiscal year under review, the global economy continued to grow at a moderate pace, mainly in major economies; however, the outlook remained uncertain amid trade policy developments and rising geopolitical risks. In particular, some international organizations revised their economic growth forecasts downward, and concerns about a slowdown persisted. In the Japanese economy, while consumer spending remained resilient against the backdrop of improved employment and income conditions, a full recovery continued to take time due to inflation, interest rate trends, exchange rate fluctuations, and concerns about a slowdown in the global economy. The number of new housings starts in the domestic housing market from April 2026 to June 2026 increased year on year for owner-occupied houses, rental housing and built-for-sale houses, resulting in a year-on-year increase in the overall figure. In the general construction market, although the total floor area of new construction starts increased in the categories of offices, the figure s for stores, factories and warehouses decreased year on year. The overall figure also decreased year on year. Amid this operating environment, the Daiwa House Group recorded consolidated net sales of 1,408,385 million yen (+9.0% year on year) for the first three months of the fiscal year ending March 2027. Operating income came to 130,644 million yen (+10.6% year on year), ordinary income came to 123,000 million yen (+9.9% year on year), while net income attributable to owners of the parent amounted to 83,194 million yen (+9.1% year on year). In April 2026, the Company established the Data Center Business Division within the Business Solution Headquarters in order to further expand its data center business. Results by business segment are as follows. Single-Family Houses Business Net sales in the Single-Family Houses Business amounted to 269,258 million yen (+14.3% year on year), and operating income came to 9,255 million yen (+29.2% year on year). In Japan, orders received and sales increased year on year driven by expanded sales of “Smart Made Housing,” which combines the advantages of both custom designs and standardized houses, and the effects of various sales campaigns. In April 2026, the Company began offering “Watashi-no Jiyuku” (My Free Zone), a dedicated space designed to suit various uses and lifestyles with consideration for sound, thereby promoting the creation of homes tailored to increasingly diverse lifestyles. In addition, the renovation and purchase-and-sale businesses of the Livness business also contributed to performance. Overseas, orders received and h ouses delivered increased year on year, driven by an increase in sales communities and strengthened sales initiatives in the United States. In March 2026, Trumark Companies, LLC, which operates a single-family home business on the U.S. West Coast, acquired the single-family home business of JK Monarch Enterprises, LLC in Washington State, thereby expanding its business area. Rental Housing Business Net sales in Rental Housing Business amounted to 386,648 million yen (+10.7% year on year), and operating income came to 42,868 million yen (+12.6% year on year). In this business, the Company provides proposals and support for rental housing management to help property owners build assets. In May 2026, the Company launched “MOKURIE”, wooden apartment complexes that utilize locally sourced timber. In addition, the Company sold two domestic development properties.
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 3 Daiwa Living Co., Ltd., under the “D-ROOM” rental housing brand, has been strengthening efforts to secure management contracts for ZEH-M properties (Net Zero Energy House Mansion) and promoting renovations of existing properties. These initiatives contributed to an increase in managed units and the maintenance of a high occupancy rate. Daiwa House Chintai Reform Co., Ltd., has been promoting renovation proposals that contribute to enhancing asset value while remaining close to rental housing owners. In April 2026, it launched its wooden apartment complex business based on the business inherited from Daiwa House Wood Reform Co., Ltd. Overseas, in the U.S., the Group focuses on promptly establishing stable operations for its properties and improving occupancy rates and profitability, while closely monitoring market trends. Condominiums Business Net sales in Condominiums Business amounted to 56,068 million yen (-13.6% year on year), and operating income came to 1,878 million yen (-46.5% year on year). This was mainly attributable to a decrease in the number of condominium units delivered compared with the same period of the previous fiscal year. In this business, the Company engaged in the sale of new condominiums, mainly in the Tokyo Metropolitan area and regional hub cities. “PREMIST Tsukuba Kenkyu gakuen” (Ibaraki Prefecture), which went on sale in May 2026, was highly regarded for its living environment that combines a natural setting with everyday convenience, as well as its extensive common facilities. “MONDOMIO HOKKAIDO CHITOSE STATION FRONT” was also well received for its excellent accessibility and ability to meet diverse needs. Sales of both properties generally progressed steadily. DAIWA LIFENEXT CO., LTD. opened “FUTA TABI FUTABA FUKUSHIMA” (Fukushima Prefecture), a retreat-style hotel, in June 2026. The hotel is equipped with accommodation and conference facilities. It also opened “GRAND HOSTEL LDK Osaka Shinsekai,” a hostel accommodating up to 252 guests. The business has remained steady as a result of these developments. Commercial Facilities Business Net sales in Commercial Facilities Busines s amounted to 315,416 million yen ( +9.1% year on year), and operating income came to 35,656 million yen (+0.5% year on year). In this segment, the Company proposes various plans tailored to the business strategies of tenant companies and area characteristics. The Company is strengthening its efforts on large-scale properties and expanding its built-for-sale, which handles the entire process from development and leasing to design and construction, as well as its purchase -and-sale business. In May 2026, the Company opened “COTOE HASHIMOTO ” (Kanagawa Prefecture), a neighborhood shopping center, as part of its BIZ Livness solution. This involved revitalizing a large-scale commercial facility that was 20 years old. Daiwa Lease Co., Ltd. opened “Mito Kōbun Terrace” (Ibaraki Prefecture), a mixed -use facility developed through a Park-PFI project. In the urban hotels business operated by Daiwa House Realty Mgt. Co., Ltd., the average occupancy rate declined due in part to a slowdown in inbound tourism demand. However, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) increased year on year. At Royal Home Center Co., Ltd., the opening of “Royal Pro Minami-Kashiwa” (Chiba Prefecture) and “Royal Home Center 246 Mizoguchi” (Kanagawa Prefecture) brought the total number of stores nationwide to 67.
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 4 Logistics, Business & Corporate Facilities Business Net sales in Logistics, Business & Corporate Facilities Business amounted to 368,867 million yen (+6.9% year on year), and operating income came to 54,402 million yen (+13.5% year on year). In logistics facility development, construction commenced on four properties: “DPL Miyagi Taiwa,” “DPL Sendai Nagamachi II,” “DPL Samukawa I” (Kanagawa Prefecture) and “DPL Morioka Minami.” In addition, “DPL Kuki Miyashiro II” (Saitama Prefecture) was completed. In the Livness Business, the Company sold “BIZ Livness Gotemba Jimba” (Shizuoka Prefecture) and “DPL Fukuoka Tobara,” while continuing to replace assets within its portfolio. In the data center business, the Company developed a modular data center. “Module DPDC Fukushima I” in Okuma Town, Futaba District, Fukushima Prefecture, was completed in April 2026 and has commenced operations. Fujita Corporation received orders for construction related to factories and logistics facilities, land readjustment, and infrastructure-related construction, etc., and its business progressed steadily. At Sumitomo Densetsu Co., Ltd., orders for data center -related construction and power transmission line construction increased, and both the value of orders received and the construction order backlog remained at a high level. In the property management business, Daiwa House Property Management Co., Ltd. signed new management contracts for a total of three logistics and other properties, bringing the number of managed buildings to 271 as of June 30, 2026. In the logistics services business, orders in the IT business remained firm at the Daiwa Logitec h Group, supported by customers’ investments in digital transformation (DX). Daiwa Logistics Co., Ltd. opened the “Nagoya Minami Logistics Center.” As of June 30, 2026, the number of logistics centers totaled 110, representing a total floor area of approximately 429,000 tsubo (approximately 1.42 million square meters). At Wakamatsu KONPOU UNYU SOKO, Inc., logistics center utilization remained at a high level. Overseas, the Company completed the early sale of certain buildings at “Blue Ridge Commerce Center” in the U.S. Environment and Energy Business Net sales in Environment and Energy Business amounted to 32,044 million yen (+14.6% year on year), and operating income came to 4,943 million yen (+12.9% year on year) In this business, the Group operates three businesses: the EPC business, PPS business and IPP business. In the EPC business, the Company contributed to the wider adoption of renewable energy through the expansion of off-site PPAs (Power Purchase Agreements). In the PPS business, although wholesale electricity market prices rose due to increases in fuel prices and other factors, the Company improved business stability and secured earnings by procuring most of its power supply through bilateral contracts. As a new initiative, the Company has been conducting a demonstration project for a grid-scale battery storage facility at its Kyushu Plant in preparation for entering the battery storage business. Construction has been completed, and operations are scheduled to commence in September 2026. Overseas, the Company focused on exploring new on-site PPA project opportunities through its joint venture with WHA Corporation in Thailand.
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 5 (2) Summary of Financial Conditions for the Period under Review Total assets as of the end of the consolidated three-month reporting period amounted to 8,616,366 million yen, an increase of 203,946 million yen compared with 8,412,419 million yen in total assets at the end of the previous consolidated fiscal year. This was mainly due to an increase in inventory assets accompanying the acquisition of real estate for sale in Commercial Facilities Business and Single-Family Houses Business. Total liabilities as of the end of the consolidated three-month reporting period amounted to 5,613,742 million yen, an increase of 223,597 million yen compared with 5,390,144 million yen in total liabilities at the end of the previous consolidated fiscal year. The principal reason for this was that, although trade payables decreased due to payments for construction costs and other expenses , the Company raised funds through bank borrowings and the issuance of commercial paper for the acquisition of real estate for sale, real estate for investment, and other purposes. Total net assets as of the end of the consolidated three-month reporting period amounted to 3,002,624 million yen, a decrease of 19,650 million yen compared with 3,022,275 million yen at the end of the previous consolidated fiscal year. The main factors behind this were the payment of 61,934 million yen in dividends to shareholders for the previous consolidated fiscal year and a decrease in the non-controlling interests, despite the posting of 83,194 million yen in net income attributable to owners of the parent. At the end of the term under review, these results were 3,463,955 million yen in interest -bearing liabilities excluding lease obligations among others, and a debt-equity ratio of 1.19 times. After taking the hybrid financing into account, the debt-equity ratio came to 1.10 times*. *The debt -equity ratio is calculated considering the publicly offered hybrid bonds (subordinated bonds) and hybrid loans (subordinated loans) totaling 250 billion yen with a 50% equity credit in terms of rating. (3) Consolidated Earnings Forecasts and Other Forward-Looking Statements Based on the business results for the first quarter, the Company has revised consolidated business forecasts for the fiscal year ending March 31, 2027. For details, please refer to “Notice Concerning Revisions of Earnings Forecasts and Dividend Forecasts for the Fiscal Year Ending March 2027” announced on August 6, 2026. (Reference) Comparison with Previous Fiscal Year Results Excluding the Amortization of Actuarial Differences for Retirement Benefits, etc. (% figures represent year-on-year change) Net sales Operating income Ordinary income Net income attributable to owners of the parent Fiscal year: Millions of yen % Millions of yen % Millions of yen % Millions of yen % ending March 31, 2027 (forecasts) 5,900,000 5.8 460,000 -7.9 402,000 -11.9 266,000 -2.0 ended March 31, 2026 5,576,861 2.6 499,203 12.2 456,296 10.0 271,439 6.1
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 6 2. Consolidated Financial Statements and Main Notes (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and bank deposits 434,371 459,663 Trade notes and accounts receivable 552,672 516,526 Mortgage notes receivable held for sale 39,743 39,011 Securities maturing within one year 195 196 Costs on construction contracts in progress 74,010 78,124 Real estate for sale 2,303,351 2,414,796 Real estate for sale in process 760,317 853,235 Undeveloped land for sale 710 － Merchandise and finished goods 22,342 23,130 Work in process 9,313 13,694 Raw materials and supplies 9,596 9,470 Other current assets 499,260 481,273 Allowance for doubtful accounts (3,188) (3,089) Total current assets 4,702,696 4,886,035 Non-current assets Property, plant and equipment Buildings and structures 1,671,419 1,678,997 Accumulated depreciation (660,178) (668,745) Buildings and structures, net 1,011,241 1,010,251 Land 933,879 924,564 Other tangible assets 659,613 687,373 Accumulated depreciation (261,663) (265,466) Other, net 397,950 421,906 Total property, plant and equipment 2,343,071 2,356,722 Intangible assets Goodwill 159,917 174,505 Other intangible assets 222,849 216,746 Total intangible assets 382,767 391,251 Investments and other assets Investment securities 303,797 309,215 Assets for employees’ retirement benefits 237,745 235,907 Lease deposits 257,030 256,809 Other assets 188,189 183,557 Allowance for doubtful accounts (2,878) (3,132) Total investments and other assets 983,884 982,356 Total non-current assets 3,709,723 3,730,331 Total assets 8,412,419 8,616,366 *1 *1 *1 *1 *1 *1 *1 *1 *1 *1 *1 *1
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 7 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Trade notes and accounts payable 395,523 328,306 Short-term loans from banks 757,904 1,051,469 Current portion of bonds 65,000 91,000 Current portion of long-term loans from banks 154,993 167,337 Commercial papers 179,000 250,000 Income taxes payable 93,233 53,924 Advances received 140,055 147,094 Advances received on construction projects in progress 243,683 247,178 Accrued bonuses 98,340 35,034 Provision for warranties for completed construction 13,543 12,928 Provision for loss on construction contracts 25,037 20,493 Asset retirement obligations 5,620 4,458 Other current liabilities 490,197 480,951 Total current liabilities 2,662,133 2,890,178 Non-current liabilities Bonds 714,000 663,000 Long-term loans from banks 1,205,808 1,241,148 Lease deposits received 315,410 315,940 Liabilities for employees’ retirement benefits 97,857 97,104 Asset retirement obligations 65,929 68,330 Other non-current liabilities 329,003 338,041 Total non-current liabilities 2,728,010 2,723,564 Total liabilities 5,390,144 5,613,742 Net assets Shareholders’ equity Common stock 162,602 162,602 Capital surplus 293,897 265,007 Retained earnings 2,387,104 2,408,452 Treasury stock (185,546) (185,549) Total shareholders’ equity 2,658,058 2,650,513 Accumulated other comprehensive income Unrealized gain (loss) on securities 64,810 67,055 Deferred gain (loss) on hedging instruments (794) (538) Land revaluation reserve 11,520 11,431 Foreign currency translation adjustments 163,148 181,120 Total accumulated other comprehensive income 238,685 259,069 Non-controlling interests 125,531 93,041 Total net assets 3,022,275 3,002,624 Total liabilities and net assets 8,412,419 8,616,366
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 8 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Net sales 1,292,144 1,408,385 Cost of sales 1,018,031 1,107,744 Gross profit 274,112 300,640 Total selling, general and administrative expenses 155,996 169,995 Operating income 118,116 130,644 Non-operating income Interest income 1,873 1,277 Dividend income 2,174 2,912 Equity in earnings of affiliates 218 － Gain on valuation of derivatives － 1,085 Miscellaneous income 3,311 4,388 Total non-operating income 7,578 9,663 Non-operating expenses Interest expenses 9,991 13,226 Share of loss of entities accounted for using equity method － 1,970 Miscellaneous expenses 3,764 2,110 Total non-operating expenses 13,755 17,307 Ordinary income 111,939 123,000 Extraordinary income Gain on sales of non-current assets 77 273 Gain on sales of investments securities 967 3,369 Gain on sales of shares of subsidiaries and affiliates 139 615 Total extraordinary income 1,184 4,258 Extraordinary losses Loss on sales of non-current assets 78 170 Loss on disposal of non-current assets 251 381 Impairment loss － 3 Loss on sales of investment securities 0 0 Loss on revaluation of investment securities － 51 Loss on sales of shares of subsidiaries and affiliates 53 － Total extraordinary losses 383 607 Profit before income taxes 112,740 126,651 Current 18,764 20,471 Deferred 17,855 22,121 Total income taxes 36,620 42,592 Profit 76,120 84,058 Profit attributable to non-controlling interests (118) 864 Profit attributable to owners of the parent 76,239 83,194
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 9 (Consolidated Statements of Comprehensive Income) (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Profit 76,120 84,058 Other comprehensive income Unrealized gain (loss) on securities 2,807 2,027 Deferred gain (loss) on hedging instruments (1,068) 255 Foreign currency translation adjustments (41,035) 20,293 Share of other comprehensive income (loss) of affiliates accounted for by the equity method (87) (801) Total other comprehensive income (39,384) 21,775 Comprehensive income 36,735 105,833 Total comprehensive income attributable to: Owners of the parent 41,452 103,666 Non-controlling interests (4,717) 2,167
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 10 (3) Notes Notes on Quarterly Consolidated Balance Sheet *1 Change of the holding purpose of Real estate for sale, etc. and Non-current assets Due to the change in the holding purpose, real estate for investment recorded under “ Buildings and structures” and “Land” of Non-current assets were reclassified to “Real estate for sale” and others of Current assets. The amounts are as follows: (Millions of yen) Previous fiscal year (As of March 31, 2026) Reporting fiscal year (As of June 30, 2026) 93,697 13,700 Notes on Segment Information, etc. Segment Information I Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) 1. Sales and Operating Income or Loss by Reportable Business Segment (Millions of yen) Reportable Business Segments Single-Family Houses Rental Housing Condominiums Commercial Facilities Logistics, Business & Corporate Facilities Environment and Energy Total Sales (1) Sales to customers 233,532 348,652 62,654 287,548 334,639 17,887 1,284,914 (2) Inter-segment sales or transfers 2,042 613 2,247 1,646 10,324 10,081 26,956 Total 235,574 349,266 64,902 289,195 344,964 27,968 1,311,871 Operating income 7,162 38,076 3,510 35,483 47,948 4,377 136,558 Other Businesses (Note: 1) Subtotal Adjustment (Note: 2) Amounts on the Quarterly Consolidated Statement of Income (Note: 3) Sales (1) Sales to customers 7,229 1,292,144 ― 1,292,144 (2) Inter-segment sales or transfers 6,911 33,867 (33,867) ― Total 14,141 1,326,012 (33,867) 1,292,144 Operating income 1,630 138,188 (20,072) 118,116 Notes: 1. Other Businesses include financial business and others. 2. -20,072 million yen in adjustments to operating income by business segment includes -76 million yen in elimination within business segments, 174 million yen in amortization of goodwill and others, and -20,171 million yen in corporate expenses not allocated to each business segment. Corporate expenses mainly consist of general and administrative expenses and experiment and research expenses not attributable to reportable business segments. 3. Operating income by business segment is adjusted to correspond to operating income in the Quarterly Consolidated Statement of Income.
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 11 II Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) 1. Sales and Operating Income or Loss by Reportable Business Segment (Millions of yen) Reportable Business Segments Single-Family Houses Rental Housing Condominiums Commercial Facilities Logistics, Business & Corporate Facilities Environment and Energy Total Sales (1) Sales to customers 266,994 386,331 53,955 312,941 360,766 21,299 1,402,288 (2) Inter-segment sales or transfers 2,264 317 2,113 2,475 8,100 10,745 26,016 Total 269,258 386,648 56,068 315,416 368,867 32,044 1,428,304 Operating income 9,255 42,868 1,878 35,656 54,402 4,943 149,005 Other Businesses (Note: 1) Subtotal Adjustment (Note: 2) Amounts on the Quarterly Consolidated Statement of Income (Note: 3) Sales (1) Sales to customers 6,096 1,408,385 ― 1,408,385 (2) Inter-segment sales or transfers 6,939 32,955 (32,955) ― Total 13,036 1,441,341 (32,955) 1,408,385 Operating income 879 149,885 (19,240) 130,644 Notes: 1. Other Businesses include financial business and others. 2. -19,240 million yen in adjustments to operating income by business segment includes -165 million yen in elimination within business segments, 174 million yen in amortization of goodwill and others, and -19,249 million yen in corporate expenses not allocated to each business segment. Corporate expenses mainly consist of general and administrative expenses and experiment and research expenses not attributable to reportable business segments. 3. Operating income by business segment is adjusted to correspond to operating income in the Quarterly Consolidated Statement of Income. Notes on Significant Changes in the Amount of Shareholders’ Equity No items to report. Notes on Premise of Going Concern No items to report. Notes on Statement of Cash Flows No Quarterly Consolidated Statements of Cash Flows have been prepared for the reporting first quarter. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the first quarter of the consolidated fiscal year are as follows: (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Depreciation 33,718 36,482 Amortization of goodwill 3,910 3,289
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Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2027 Daiwa House Industry Co., Ltd. (code #1925) 12 Disclaimer: This English translation has been prepared for general reference purposes only. The Company shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, re aders should refer to and rely upon the original Japanese text released on August 6, 2026.