Nichiha (7943) Q4 2026 earnings summary

Executive summary

• FY2026 net sales fell 3.2% to ¥143.74bn; operating profit rose 34.6% to ¥9.355bn, while profit attributable to owners declined 8.1% to ¥2.486bn.

• FY2027 guidance: net sales ¥141.0bn, operating profit ¥9.6bn, ordinary profit ¥9.8bn and profit attributable to owners ¥8.0bn; annual dividend forecast is ¥114 per share.

• Strategy focuses on domestic non-residential and overseas growth, improved profitability, materiality initiatives and capital policy.

Financial highlights

• FY2026 gross profit rose to ¥51.63bn from ¥50.851bn; gross margin improved to 35.9% from 34.2%.

• Operating profit increased by ¥2.403bn to ¥9.355bn; operating margin rose to 6.5% from 4.7%.

• Ordinary profit rose 41.3% to ¥10.246bn; net income attributable to owners fell 8.1% to ¥2.486bn.

• Net sales fell 3.2% to ¥143.74bn; domestic sales declined 2.0% to ¥102.094bn and overseas sales fell 7.7% to ¥32.013bn.

• Operating cash flow was ¥8.212bn, down from ¥10.413bn; year-end cash and cash equivalents were ¥24.696bn, down from ¥26.481bn.

Outlook and guidance

• FY2027 forecast: net sales ¥141.0bn (-1.9%), operating profit ¥9.6bn (+2.6%), ordinary profit ¥9.8bn (-4.4%) and net income ¥8.0bn (+221.7%); EPS ¥240.94.

• Operating margin is forecast at 6.8%; expected ROE is 6.5% and ROIC 4.8%, below medium-term targets of 9% and 8%, respectively.

• Assumptions include 2026 housing starts down 0.3%, siding industry sales volume down 4.5%, USD/JPY 155, CNY/JPY 22 and oil at $90/barrel; ¥1.0bn of energy-cost increases is included.

• Potential material inflation, supply constraints and weaker housing demand are excluded from guidance.

• FY2027 capex is forecast at ¥6.775bn, including ¥2.029bn for a new logistics warehouse; depreciation is forecast at ¥5.631bn.