Japan Pulp and Paper Company (8032) Q4 2026 earnings summary

Executive summary

• Revenue rose 9.4% year-over-year to ¥606,779 million, driven by Non-Japan Wholesaling and M&As in Oceania, with full-year contributions from German and French subsidiaries.

• Ordinary profit fell 31.2% year-over-year to ¥10,887 million due to delayed recovery in German subsidiaries, FX losses, and lower profitability in woody biomass fuel.

• Profit attributable to owners dropped 37.6% year-over-year to ¥4,720 million, impacted by restructuring expenses and goodwill impairment.

• Non-Japan Wholesaling revenue surged 22.7% due to M&A, but the segment posted an ordinary loss from business environment challenges and FX losses.

• Cash and cash equivalents increased by ¥6,253 million to ¥25,280 million at year-end.

Financial highlights

• FY2025 revenue: JPY 606.8 billion (+9.4% YoY); gross profit: JPY 105.4 billion (+15.3% YoY).

• Operating profit: JPY 10.8 billion (-28.0% YoY); ordinary profit: JPY 10.9 billion (-31.2% YoY).

• Profit attributable to owners: JPY 4.7 billion (-37.6% YoY); basic EPS: ¥39.50 (down from ¥61.44).

• Free cash flow: JPY 23.4 billion; cash and equivalents at year-end: JPY 25.3 billion.

• Net assets per share: ¥1,145.05 (up from ¥1,087.70).

Outlook and guidance

• FY2026 forecasts: ordinary profit JPY 15.0 billion (+37.8% YoY), profit attributable to owners JPY 8.0 billion (+69.5% YoY), basic EPS ¥72.70.

• Profit growth expected from improved Non-Japan Wholesaling and Raw Materials & Environment segments.

• Annual dividend forecast for FY2026: JPY 36/share (up from JPY 34 in FY2025).

• Medium-term plan targets JPY 22.0 billion ordinary profit by FY2026, but a shortfall is expected due to sluggish Non-Japan Wholesaling.

• One-time expenses expected from Tokyo head office relocation.