Nichiha (7943) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025/3 increased 4.0% year-over-year to ¥148,478 million, but operating profit declined 31.9% to ¥6,951 million and net income attributable to shareholders dropped 66.4% to ¥2,706 million due to higher costs and extraordinary tax expenses.

• Comprehensive income decreased 49.4% year-over-year to ¥6,768 million.

• Market share in domestic siding reached a record 59.6%, with continued leadership in high-value-added products.

Financial highlights

• Gross profit margin was 34.2%, nearly flat year-over-year, with gross profit at ¥50,851 million.

• Operating profit margin fell to 4.7% from 7.1% the previous year.

• Ordinary profit fell 38.8% year-over-year to ¥7,254 million.

• Extraordinary tax expenses of ¥2,051 million were recorded due to transfer pricing adjustments.

• Cash flows from operating activities improved to ¥10,413 million from ¥6,919 million the previous year.

Outlook and guidance

• FY2026/3 revenue is forecast at ¥147,500 million, nearly flat year-over-year, with operating profit projected to recover to ¥10,000 million (6.8% margin) and net income to ¥7,200 million.

• Dividend payout ratio target raised to 45% or higher, with annual dividend forecast at ¥114 per share.