First-corporation Inc. (ファーストコーポレーション株式会社), a Tokyo-based developer specializing in mid- to small-sized apartment construction using a "custom-build" approach from land acquisition, reported a 31.0% year-over-year (YoY) decline in revenue for its fiscal year 2026 Q3, with revenue falling to JPY 24.0bn. The company also saw operating profit decline by 14.5% YoY to JPY 1.61bn, while ordinary income and net profit fell by 18.0% and 16.8%, respectively, to JPY 1.48bn and JPY 997M.
Key Numbers
| Metric | Q3 2026 (JPY) | YoY Change |
|---|---|---|
| Revenue | 24.0bn | -31.0% |
| Operating Profit | 1.61bn | -14.5% |
| Ordinary Income | 1.48bn | -18.0% |
| Net Profit | 997M | -16.8% |
| Operating Margin | 6.7% | N/A |
| Equity Ratio | 25.9% | -13.3 pts |
Business Overview
First-corporation Inc. focuses on the development of mid- to small-sized residential buildings in urban areas, leveraging its expertise in the "custom-build" method from land acquisition. The company operates primarily in the Tokyo metropolitan area, where it has established a track record in delivering tailored housing solutions.
Analysis
The sharp decline in revenue highlights the challenges faced by the construction sector, particularly in the Tokyo region. Factors such as persistent high construction material costs, labor shortages, and regulatory constraints on overtime work have significantly impacted the company’s performance. A notable decline in new apartment starts in the Tokyo area is believed to have directly contributed to the revenue drop.
Despite the revenue decline, the company’s operating margin of 6.7% remains in line with industry averages, suggesting that First-corporation Inc. has managed to maintain some level of cost control amid the challenging environment. However, the sharp reduction in sales has placed pressure on overall profitability.
Next Year Guidance
| Metric | 2027 Forecast (JPY) | YoY Change |
|---|---|---|
| Revenue | 23.99bn | 34,768 |
| Operating Profit | 1.61bn | 1,885 |
| Ordinary Income | 1.48bn | 1,810 |
| Net Profit | 997M | 1,199 |
Management has provided the above guidance for the next fiscal year. Investors should monitor the company's progress against these targets.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Financial figures are AI-extracted and may contain errors — always verify against the original filing.