Nifco (7988) Q1 2026 earnings summary

Executive summary

• Operating profit and OPM reached record-high levels despite a year-over-year decrease in sales.

• Net sales for Q1 FY2025 were ¥85,541 million, down 0.7% year-over-year; operating profit rose 9.3% to ¥12,999 million.

• Net sales increased in Japan and North America but declined in Europe and Asia, resulting in a slight overall sales decrease.

• Profit attributable to owners increased 11.2% year-over-year to ¥9,831 million; EPS was ¥103.28, up 16.2%.

• Comprehensive income dropped sharply to ¥1,655 million, an 89.6% decrease year-over-year.

Financial highlights

• Net sales: ¥85.5bn, down 0.7% year-over-year; operating profit: ¥12.9bn, up 9.3%.

• OPM reached 15.2%, up 1.4 percentage points year-over-year.

• Net income: ¥9.8bn, up 11.2% year-over-year; EPS: ¥103.28, up 16.2%.

• Free cash flow: ¥2.1bn, down ¥2.7bn year-over-year; cash equivalents decreased by ¥15.9bn.

• Ordinary profit for Q1 FY2025 was ¥12,593 million, down 11% year-over-year.

Outlook and guidance

• FY2025 net sales forecast at ¥348,000 million, down 1.4% year-over-year.

• Operating and ordinary profit both forecast at ¥49,500 million, up 0.6% year-over-year.

• Profit attributable to owners projected at ¥30,600 million, down 31.6% year-over-year; EPS forecast at ¥315.76.

• DPS forecast raised to ¥80, up ¥5; company remains flexible on further share buybacks.

• Dividend payout ratio targeted at 30%, with total payout ratio above 45%.