Nitto Kohki (6151) investor relations material

Executive summary

• FY2025 sales were 27,289 million yen, nearly flat year-over-year, with operating profit down 49.5% to 1,182 million yen due to higher costs from new plant operations and material costs.

• Profit attributable to owners of parent rose 59.4% year-over-year to 2,144 million yen, driven by 2,370 million yen in subsidies related to new plant investment.

• Comprehensive income increased 61.1% to 3,395 million yen.

• FY2026 plans target 29,190 million yen in sales (+7.0% YoY) and 1,750 million yen in operating profit (+48.1% YoY), with growth expected from environmentally friendly products and new energy businesses.

Financial highlights

• FY2025 sales: 27,289 million yen (+0.1% YoY); operating profit: 1,182 million yen (-49.5% YoY); ordinary profit: 1,466 million yen (-41.6% YoY).

• Gross profit margin declined from 44.5% to 42.0% YoY; SG&A expenses increased by 4.8%.

• Extraordinary income of 2,370 million yen (subsidy income) significantly boosted net profit.

• Cash and cash equivalents at period end: 11,749 million yen, down from 13,429 million yen.

• Net assets increased to 60,942 million yen, with a capital adequacy ratio of 88.7%.

Outlook and guidance

• FY2026 sales forecast: 29,190 million yen (+7.0% YoY); operating profit: 1,750 million yen (+48.1% YoY); EBITDA: 3,920 million yen (+25.2% YoY).

• Net profit expected to decrease to 1,470 million yen due to absence of prior year’s one-time subsidy income.

• Only full-year guidance provided due to geopolitical and structural uncertainties.

• Annual dividend forecast for FY2026 is 32 yen per share, with a 40% payout ratio.

• Dividend payout ratio for FY2025 was 34.9%; FY2026 plan is 40.6%.