Sumitomo Forestry profit dips as Metricon acquisition costs weigh on bottom line

The Japanese group's Australian unit saw revenue surge 89% from the home builder, but goodwill impairments and higher costs dragged earnings lower.

By Handelsavisen Newsroom · Automated 2026-07-01 08:11 UTC · 1 min read

Sumitomo Forestry Australia reported a decline in profit for the period, despite a significant revenue boost from its acquisition of Metricon, Australia's largest home builder.

The Japanese logging and building materials producer confirmed it paid A$105 million for the Melbourne-based firm, a move that drove an 89% increase in revenue but also more than doubled comparative costs.

The financial results were weighed down by a A$35 million goodwill impairment charge related to the Metricon deal.

The financial results were weighed down by a A$35 million goodwill impairment charge related to the Metricon deal.

The impairment reflects the accounting adjustment required as the parent company integrates the home builder into its broader operations, offsetting the top-line growth generated by the acquisition.

The profit dip highlights the immediate integration challenges facing Sumitomo Forestry as it expands its footprint in the Australian residential construction market.

While the acquisition significantly scales the group's revenue base, the initial financial impact includes substantial non-cash charges and increased operational expenditures associated with absorbing the new entity.