Nagase (8012) Q4 2025 earnings summary

Executive summary

• FY2024 saw record-high gross profit and operating income, with improved gross profit margin across all segments, despite higher SG&A expenses and a one-time withdrawal loss from the thin glass substrate business in China.

• Prinova Group's profit declined due to contract manufacturing challenges, while Nagase Viita's profit fell on weak cosmetic material sales; trading business and food ingredient sales performed well.

• Strategic withdrawal from unprofitable U.S. color formers business contributed to overall profitability improvement.

• Net sales rose 5.0% year-over-year to ¥944,961 million for the fiscal year ended March 31, 2025.

• Comprehensive income declined 30.3% year-over-year to ¥32,299 million.

Financial highlights

• FY2024 sales: ¥944.9 billion (up 5% year-over-year); gross profit: ¥181.2 billion (up 10%); operating income: ¥39.0 billion (up 28%); net income: ¥25.5 billion (up 14%).

• Gross profit margin improved by 0.9 ppt to 19.2%; operating profit margin rose to 4.1%.

• Overseas gross profit increased, notably in the Americas, Greater China, and ASEAN, aided by a weaker yen.

• Earnings per share (EPS) was ¥230.39, up from ¥194.96 the previous year.

• Total assets reached ¥808,143 million, up from ¥792,336 million year-over-year.

Outlook and guidance

• FY2025 sales forecast: ¥955.0 billion; gross profit: ¥181.0 billion; operating income: ¥39.5 billion; net income: ¥31.5 billion.

• Gross profit margin expected to improve by 0.6 ppt; all profit measures projected to reach record highs.

• Semiconductor-related businesses and food ingredients expected to drive growth; Prinova Group and Nagase Viita to recover profitability.

• EPS forecasted at ¥300.99 for the next fiscal year.

• No impact from U.S. tariff policies included in guidance; revisions to be disclosed as needed.