Nagase (8012) Q1 2027 earnings summary

Executive summary

• Achieved record-high net sales and profits for Q1 FY2026, with net sales rising 17.9% to ¥279,718 million and gross profit up 24.4% to ¥55,154 million, driven by strong performance in Materials, Electronics, and Life Sciences segments.

• Operating income surged 65.9% to ¥17,008 million, and profit attributable to owners of the parent nearly doubled to ¥14,655 million.

• Comprehensive income for the quarter reached ¥27,685 million, a significant increase from ¥1,768 million a year earlier.

• Gross profit margin improved by 1.0 ppt and operating income ratio by 1.8 ppt year-over-year.

Financial highlights

• Earnings per share for Q1 FY2026 were ¥35.93, up from ¥17.40 year-over-year (adjusted for stock split).

• Total assets increased to ¥942,118 million as of June 30, 2026, from ¥871,526 million at March 31, 2026.

• Net assets rose to ¥456,064 million, with a shareholders' equity ratio of 47.4%.

• Operating cash flow was negative ¥21.2 billion due to increased working capital; free cash flow negative ¥25.3 billion.

• Foreign exchange gains contributed ¥2.5 billion to gross profit and ¥0.9 billion to operating income.

Outlook and guidance

• Full-year FY2027 forecast: net sales ¥1,000,000 million (+2.8% YoY), operating income ¥45,000 million (+0.6%), profit attributable to owners of the parent ¥34,500 million (+4.2%), EPS ¥84.59.

• Segment forecasts: Materials sales ¥495.5 billion, Electronics ¥175.0 billion, Life Sciences ¥329.4 billion.

• No revisions to the latest consolidated earnings forecast; guidance to be reassessed at Q2 due to Middle East uncertainties and market trends.