Nichiha (7943) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2026 was ¥71,083 million, down 2.7% year-over-year, but operating profit rose 1.7% to ¥3,494 million and net income attributable to shareholders increased 34.9% to ¥2,467 million.

• Domestic business saw improved profitability, while the U.S. segment faced a decline due to withdrawal from the generic exterior siding business.

• Strategic focus is on expanding non-residential and overseas markets, improving profitability, and sustainability initiatives.

Financial highlights

• Consolidated revenue for H1 FY2026: ¥71,083 million (down 2.7% YoY); operating profit: ¥3,494 million (up 1.7% YoY); ordinary profit: ¥3,701 million (up 14.4% YoY); net income attributable to shareholders: ¥2,467 million (up 34.9% YoY).

• Gross profit for the period was ¥24,961 million, nearly flat year-over-year.

• Basic earnings per share increased to ¥73.27 from ¥52.46 year-over-year.

• Total assets decreased to ¥169,153 million as of September 30, 2025, from ¥177,455 million at March 31, 2025.

• Cash and cash equivalents at period-end were ¥22,871 million, down from ¥26,481 million at the previous year-end.

Outlook and guidance

• Full-year revenue forecast revised down to ¥145,000 million (down 2.3% YoY); operating profit guidance maintained at ¥10,000 million (up 43.8% YoY); ordinary profit forecast at ¥10,300 million (up 42.0% YoY); net income forecast at ¥3,000 million (up 10.8% YoY).

• Basic earnings per share for the full year is expected to be ¥89.07.

• U.S. business revenue forecast lowered due to market exit; domestic and China segments stable.

• Dividend forecast maintained at ¥114 per share, with a payout ratio of 128%.