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Sumitomo Forestry Grows Revenue but Sees Profit Decline, Cuts 2026 Dividend Outlook

Story Highlights
  • Sumitomo Forestry grew 2025 sales to ¥2.27 trillion, but profits and margins declined.
  • The company forecasts higher 2026 revenue yet weaker earnings and a lower dividend payout.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sumitomo Forestry Grows Revenue but Sees Profit Decline, Cuts 2026 Dividend Outlook

Meet Samuel – Your Personal Investing Prophet

Sumitomo Forestry Co ( (JP:1911) ) has provided an update.

Sumitomo Forestry reported consolidated net sales of ¥2.27 trillion for the fiscal year ended December 31, 2025, up 10.4% year on year, but operating income fell 13.3% to ¥168.7 billion and net income attributable to shareholders declined 8.5% to ¥106.7 billion, reflecting margin pressure despite top-line growth. Total assets rose to ¥2.57 trillion and shareholders’ equity increased, though the equity ratio edged down, while operating cash flow strengthened and the company maintained an active dividend policy, including a 2025 year-end payout and a reduced 2026 dividend forecast alongside guidance for further sales growth but lower profits.

The company also finalized provisional accounting for a prior business combination, which materially adjusted the allocation of acquisition costs and influenced its reported financial position. Management’s 2026 forecast points to a continued expansion in scale, with net sales expected to climb 14.2%, but anticipates further declines in operating and net income, suggesting a challenging earnings environment ahead for shareholders as the group balances growth investments, capital structure, and shareholder returns, including the impact of a three-for-one stock split executed in July 2025.

The most recent analyst rating on (JP:1911) stock is a Hold with a Yen1935.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

More about Sumitomo Forestry Co

Sumitomo Forestry Co., Ltd. is a Japan-based diversified group operating under Japanese GAAP, with core businesses spanning timber and building materials, housing construction, and related services in domestic and overseas markets. Listed on the Tokyo Stock Exchange, the company focuses on integrated forestry, housing, and environmental solutions while managing a large consolidated balance sheet and global operations.

Average Trading Volume: 3,102,200

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen1098.7B

See more insights into 1911 stock on TipRanks’ Stock Analysis page.

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